Energy has come out on top in this year’s Federal Budget, with the government investing a further $4 billion in Australia’s plan to become a renewable energy superpower and help burgeoning its renewable gas market.
Outlined in the announcement on Tuesday, 9 May, the government’s total investment to becoming a renewable energy superpower has exceeded more than $40 billion.
Among these, is the $2 billion Hydrogen Headstart, which aims to accelerate large-scale renewable hydrogen projects for the nation and bridge the commercial gap for early stage projects, and position Australia to be a world leading hydrogen producer and exporter.
The Australian Pipelines and Gas Association (APGA) warmly welcomed the $2 billion allocated to the Hydrogen Headstart as it will aim to help further develop Australia’s burgeoning renewable gas market.
“Through this Budget, the Federal Government has demonstrated that renewable gases like hydrogen and biomethane are an important part of Australia’s holistic decarbonisation strategy,” said APGA chief executive officer Steve Davies.
“As of today, the only organisations producing and delivering green hydrogen to Australian businesses and homes are gas infrastructure companies, and the industry has strong interest in working with third parties to share our insights and help facilitate the adoption of renewable gases rapidly and at scale.
“The next step in the decarbonisation journey is a Renewable Gas Target which will unlock even more private-sector investment, fast-track emission reductions, and give consumers convenient and affordable choices to decarbonise.”
The government is also providing $38.2 million to establish a guarantee of origin scheme to underpin markets for green energy, including hydrogen and other low emissions products.
The government has commissioned Jobs and Skills Australia to undertake a clean energy capacity study to evaluate workforce needs and enable Australia to strategically plan for the skills to transform to a clean energy economy.
By establishing the net zero authority, a new feature stemming from the budget, the government aims to facilitate economic development and diversification, and help smooth the changes as Australia moves to a clean energy economy.
The budget also unlocks $10 billion in new investment in firmed renewable generation and storage by funding the Capacity Investment Scheme’s initial auctions.
The $600 million allocated to the safeguard transformation stream of the powering the regions fund will support trade exposed facilities covered by the Safeguard Mechanism to reduce their onsite emissions and boost their global competitiveness.
Subscribe to The Australian Pipeliner for the latest project and industry news.