Australia’s Federal Government has announced an investment of $539.2 million in new hydrogen and CCUS projects, which is expected to create a massive boost for the industry and help to further cut Australia’s emissions.
The new investment in clean hydrogen and CCUS technologies are set to create around 2,500 jobs, support Australian industry and manufacturing and further drive down Australia’s emissions. The investment includes:
- $275.5 million to accelerate the development of four additional clean hydrogen hubs in regional Australia and implement a clean hydrogen certification scheme.
- $263.7 million to support the development of CCS/CCUS projects and hubs.
Prime Minister Scott Morrison said Australia can and will continue to meet and beat its emissions reduction commitments, while protecting and growing jobs.
“By commercialising low emissions technologies like hydrogen and CCS/CCUS, that can support our industries and critical economic sectors. And when we commercialise those technologies, they also create new jobs.”
Minister for Energy and Emissions Reduction Angus Taylor said the Government is backing practical, technological solutions to reduce emissions.
“We are backing technology to meet our 2030 target and get to net zero,” Minister Taylor said.
Australian Petroleum Production and Exploration Association (APPEA) Chief Executive, Andrew McConville, said many of the association’s members are already at the forefront of hydrogen and CCUS development and the announcement will help to accelerate development.
“Our industry works both in Australia and around the world to accelerate the development of low emissions technologies,” Mr McConville said.
“Just as government investment in renewables has fast-tracked projects, this will do the same and create thousands of jobs in the process.”
“Natural gas plays a vital role in reducing Australia’s and Asia’s emissions. Australian liquefied natural gas is helping to reduce emissions in importing countries by about 170 million tonnes each year and the commitment to the development of carbon capture and hydrogen solutions will make a further substantial contribution,” he commented.
Mr McConville said Australia’s LNG export success means that its upstream oil and gas industry has the technology, expertise, commercial and trade relationships to make, in particular, hydrogen exports, a reality.
“Developing a local hydrogen industry could enable lower emissions both in Australia and internationally, reduce energy costs, deliver energy security, together with new employment and manufacturing opportunities.”
Mr McConville noted that carbon capture is already well established as a safe, large-scale permanent greenhouse gas emissions abatement solution.
“Australia has a natural competitive advantage to implement CCS at scale. We need low-cost carbon abatement to maintain Australia’s position as a leading energy exporter,” he said.