NSW is set to attract more than $80 billion of investment, drive deep decarbonisation and establish itself as an energy and economic superpower with the recent launch of the NSW Hydrogen Strategy.
Treasurer and Energy Minister Matt Kean said the strategy, which will provide up to $3 billion in incentives, will set the State up as a global hydrogen leader and is forecast to increase the size of the NSW economy by more than $600 million by 2030.
“Hydrogen will not only help the State halve our emissions by 2030 and get to net zero by 2050, it will create new opportunities for our heavy industry, and an economic bonanza of investment and jobs,” Mr Kean said.
“This strategy is forecast to more than halve the cost of green hydrogen production in NSW and will make NSW the best place to invest in hydrogen in the world.”
Fortescue Future Industries (FFI) Chairman and Founder, Dr Andrew Forrest AO said NSW is taking a state leadership position, providing clear pathways for renewable hydrogen. He said FFI is planning to deliver 15 million tonnes of renewable green hydrogen to the world by 2030 – increasing to 50 million tonnes per year thereafter.
“We are committed to working with the NSW Government to support their ambitions and develop Green Hydrogen Hubs together,” he said.
In addition to delivering an already committed $70 million to develop the State’s hydrogen hubs in the Illawarra and the Hunter, the strategy includes:
- Exemptions for green hydrogen production from government charges;
- A 90 per cent exemption from electricity network charges for green hydrogen producers who connect to parts of the network with spare capacity;
- Incentives for green hydrogen production; and
- A hydrogen refuelling station network to be rolled out across the State.
Jemena’s Executive General Manager of Networks Shaun Reardon said the NSW Hydrogen Strategy is a great recognition of hydrogen’s role as a game changer for not only the energy sector, but the whole of the New South Wales economy.
“The strategy places Australia well on the path towards becoming a hydrogen superpower,” Mr Reardon said.
“We know green hydrogen has a central role to play in the decarbonisation of the New South Wales gas distribution network, and that it will prove crucial in powering those industries that can’t be easily electrified, such as manufacturing.
“Projections also show that if Australia repurposes its existing gas infrastructure to decarbonise the economy, it will be about half the cost of building and maintaining huge amounts of additional electricity infrastructure.”
Jemena is an advocate for a Renewable Gas Target of 10 per cent for Australia, and sees it as a key step in establishing a viable renewable gas industry.
“The Renewable Energy Target helped to spur the development of renewable technologies in the electricity sector and a similar mechanism could jump-start the gas sector to truly commercialise zero emission gases and make them available to the Australian community and industries at scale,” Mr Reardon said.
Business will be to submit an expression of interest to participate in the hydrogen hubs by the end of October.