The federal government's $100 million investment in the development of Port of Newcastle's energy precinct will also supercharge plans to create a $3.1 billion hydrogen hub capable of creating 5000 jobs.
This includes support for the existing hydrogen pilot plant and an energy precinct, which will also be created on land on Kooragang Island once earmarked for the T4 coal loader.
"We will look at prepping that (energy precinct) land. Basically anyone who wants to do energy at the port, we will say we will work with you to set it up here," port chief executive Craig Carmody said.
Bloomberg Intelligence expects global annual investment in the hydrogen sector to average $38 billion between 2020 and 2040, rising to $181 billion between 2041 and 2070.
Research conducted for the Port of Newcastle shows demand for hydrogen exported from Australia could be over 3 million tonnes each year by 2040, which could be worth up to $10 billion each year to the economy by that time. The Port estimates the value of the hydrogen hub component of the precinct could be $3.1 billion.
In addition to hydrogen, Mr Carmody said the port was keen to explore opportunities in ammonia and solar energy projects.
"I have just as many companies saying we would like to explore ammonia as an energy source. I'm not going to say 'no, I'm only doing hydrogen'. I have always said the Port of Newcastle is agnostic on energy," Mr Carmody said.
"We do 165 million tonnes of coal a year. We have to diversify that at some point."
The funding will also pave the way to integrate the port's energy projects into the state government's Hunter Central Coast Renewable Energy zone, a move that would further accelerate the region's clean energy transition.
"I'm really keen to talk to the NSW government," Mr Carmody said.
"There is no way the port is going to set up our own grid. We need to plug into the Hunter Renewable Energy Zone."
The state government announced on Monday that expressions of interest for developing hydrogen production in the Hunter and Illawarra renewable energy zones had attracted more than $4 billion in proposed private sector investment, eight times the initial target.
"This is an overwhelming level of commercial interest and it shows our policies are sending the right signals to energy investors, making NSW the go-to state for energy investment," NSW Treasurer and Energy Minister Matt Kean said.
Mr Carmody said the $100 million to develop the port's energy projects would not influence its desire to establish a container terminal at Newcastle.
"For me the containers and the energy precinct are both as important as each other," he said.
"The energy precinct is going to take a while. There is still technology to get sorted, there are still feasibility studies and concept designs that's going to take at least 12 months.
"But containers, we could start building it tomorrow if the state government lets us.
"We want to grow the port now, not in three years time."
