Although the Budget isn’t due until May, Prime Minister Scott Morrison announced this week that $275.5 million will be allotted to accelerate the development of four additional hydrogen hubs in regional Australia and implement a clean hydrogen certification scheme.
A further $263.7 million will be invested to support the development of CCS projects and hubs.
Mr Morrison said it was “essential” that Australia invested in new technologies with lower emissions.
“We cannot pretend the world is not changing. If we do, we run the risk of stranding jobs in this country, especially in regional areas,” he said.
“Australia can and will continue to meet and beat our 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.
“Low emissions industries mean more jobs directly for workers, but also cheaper energy means lower costs to businesses that they can reinvest in hiring more people.”
The move drew positive reaction from the energy industry, with APGA CEO Steve Davies saying it was “great to see such a positive budget announcement”.
“It is the skills and expertise of Australia’s gas industry that is making hydrogen, CCS and renewable gases a reality and the leveraging of today’s infrastructure will be crucial in delivering them affordably.”
Meanwhile, Australian Petroleum Production and Exploration Association (APPEA) CEO Andrew McConville said natural gas would continue to play a role in reducing emissions.
“Our industry works both in Australia and around the world to accelerate the development of low emissions technologies,” he 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 is a pathway to a large-scale hydrogen industry.
“Australia’s LNG export success means the Australian 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.”
The complete 2021 Federal Budget is anticipated for delivery on 11 May.
