Aussie Govt boosts hydrogen investment, creates job opportunities

In its vision to make Australia a key global player in hydrogen production and exports by 2030, the Morrison Government has set up a $1.2 Bn hydrogen investment project. The project is also aimed at promoting economic activity, creating new job opportunities and boosting regional growth in the country.

Under the Clean Hydrogen Industrial Hubs Program, an additional $150 Mn will be allocated in two locations for easier rollout of hydrogen hubs across seven priority regional sites. The prospective locations are: Bell Bay (TAS), Darwin (NT), Eyre Peninsula (SA), Gladstone (QLD), Latrobe Valley (VIC), Hunter Valley (NSW), and Pilbara (WA).

With these measures, the government is planning to co-locate hydrogen production and industrial uses to make the hydrogen-clean fuel technology economically viable. It also wants to strengthen the regional infrastructure and workforce to stabilise the Australian economy.

These hydrogen hubs will preserve Australia’s natural resource strengths which will be used to reap the benefits of the cheap and clean fuel energy and increasing industrial activity.

The government funding will eliminate many risk factors associated with setting up such mammoth projects. The funding will also be helpful in achieving the scales needed to foster new export industries and satisfy the increasing needs of the Indo-Pacific region.

Around $3 Mn in grants will be assigned for project consortia to facilitate the initial feasibility and design work. Another $70 Mn will be set aside to enable the rollout of projects under the $464 Mn grant program.

PM Scott Morrison reiterated his government’s aim to ensure production of the world's cheapest and cleanest hydrogen fuel and bring a transformation in the transport, energy, resources and manufacturing sectors. He said, “Our plan to invest and develop low emissions industries will mean more jobs for Australian workers, particularly in our regions, cheaper energy for businesses and lower emissions.”

Angus Taylor, Minister for Energy and Emissions Reduction said that the coming up of Clean Hydrogen Industrial Hubs will lead to reduction of unnecessary and reckless costs and increase production and job opportunities in the hydrogen industry. He added, “Australia has the potential to be a world leader in the production of affordable and clean hydrogen, and our hydrogen industry could create around 8,000 new Australian jobs and generate over $11 billion a year in GDP by 2050.”

Taylor stated that they have plans to team up with industry and collaborate with state and territory governments to accomplish this vision. Under the government’s Technology Investment Roadmap, he said that the Clean Hydrogen Industrial Hubs will help in achieving cheap hydrogen production at under $2/ kg. It will be a double-whammy for Australia as it can also meet its emission reduction targets and also sustain a fast paced industrial economy.

On the advice of Dr Alan Finkel, Special Adviser on Low Emissions Technology, the Clean Hydrogen Industrial Hub Grants program will be formulated to forge international partnerships and initiatives to expedite the deployment of hydrogen and other priority low emissions technologies. Australia has also announced partnerships with Germany, Singapore, Japan and UK on hydrogen projects in 2021.