Australia’s conservative Liberal-National government has today set aside $300 million to jump start hydrogen projects with the help of low-cost financing as the country aims to build the industry by 2030.
The hydrogen push marks one of the few areas where the conservative government’s ambitions align with renewable energy advocates, who fear the government’s support of coal and gas is thwarting efforts to cut carbon emissions.
Energy and Emissions Reduction Minister Angus Taylor said the government has a strong commitment to building a hydrogen industry, as it would create jobs and billions of dollars in economic growth over the next several decades.
“Importantly, if we can get hydrogen produced at under $2 a kilogram, it will be able to play a role in our domestic energy mix to bring down energy prices and keep the lights on,” Mr Taylor said in a statement.
As of 2018, it cost between roughly $5 and $7 per kilogram to produce hydrogen, depending on the technology used, according to the National Hydrogen Roadmap released last year. The roadmap said production costs would have to come down to between $2 and $3 to be competitive with other energy sources.
The Advancing Hydrogen Fund will be run and paid for by the government’s Clean Energy Finance Corporation (CEFC) and will focus on projects that demonstrate the technical and commercial viability of producing hydrogen at large scale.
The CEFC hydrogen fund will be working with the government’s Australian Renewable Energy Agency (ARENA), which recently called for bids for hydrogen projects to be backed by $70 million in grants.
“We see green hydrogen as offering the most credible pathway to decarbonisation for high emitting sectors,” CEFC Chief Executive Ian Learmonth said, pointing to the transport and manufacturing sectors.
In a joint statement, Mr Taylor, and finance minister, Mathias Cormann, said the CEFC would provide concessional finance for projects to support a national hydrogen industry.
It would consider new investments in advancing hydrogen production, developing export and domestic supply chains, establishing hydrogen hubs and backing projects that build domestic demand for hydrogen.
Australia’s energy ministers signed off on a national hydrogen strategy in November at the COAG energy council meeting, the first meeting of the federal/state decision-making body for more than 12 months.
Hydrogen has been championed by Australia’s chief scientist Dr Alan Finkel.
In a joint statement after the November meeting, ministers noted markets for hydrogen were growing in Asia and Europe, and said Australia could replicate its success “in becoming a leader in the global LNG market over the past 40 years”.
“We have the resources, technology, workforce and experience needed to be a world leading hydrogen producer and exporter,” the joint statement said.
“Australia’s renewable energy generation capacity provides particular advantages in the production of green hydrogen.”
EcoNews is an independent publication that relies on contributions from its readers.
WE’RE BUILDING A PLATFORM WITH A CLEAR FOCUS ON THE ENVIRONMENT, CULTURAL AND SOCIAL GOOD. CONTRIBUTE AND TOGETHER WE CAN MAKE AN IMPACT.
If you value EcoNews, but are unable to contribute via sponsorship or advertising we ask that you promote our online store The Native Shop – www.nativeshop.com.au via your social media to assist us to fund this valuable service.
One Response
Ecocern P/L is interested in Solar Hydrogen projects should anyone wish to invest.