OPINION: Palaszczuk’s pursuit of transportable renewable hydrogen could be her saviour

Palaszczuk’s pursuit of a new cutting-edge industry in transportable renewable hydrogen could be her saviour, writes Steven Wardill

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NNASTACIA Palaszczuk is often derided as a “do nothing” political leader who keeps getting elected through luck.

Those observations were enlivened again after last week’s State Budget which was so lacking when it came to inventive policy initiatives that some might wonder whether the Palaszczuk Government even knows Queensland faces an economic crisis.

Queensland Premier Annastacia Palaszczuk pictured during Estimates at Parliament House, Brisbane 7th of November 2020. (Image/Josh Woning)

Victoria’s Labor Government embarked on a massive social housing spending spree to kickstart activity in its economy while New South Wales’ Coalition administration went for major tax and energy reform. Here in Queensland, the Palaszczuk Government is borrowing comparatively less, which Treasurer Cameron Dick has crowed long and loud about.

But all that new debt is doing is funding normal public services and an average amount of infrastructure which the State can’t pay for in the current climate because its revenue streams have collapsed.

Unimaginative. Boring. Bland.

Yet at the same time Palaszczuk is pursuing a new cutting-edge industry in transportable renewable hydrogen.

In years to come Palaszczuk’s hydrogen push may be compared to Queensland’s successful pursuit of a coal industry all those decades ago or the Beattie and Bligh governments’ efforts with LNG, both of which have delivered significant revenue and jobs to the Sunshine State.

Or if this expensive technology doesn’t stack up, Palaszczuk may earn the odium of comparisons with Sir Joh Bjelke-Petersen and his infamous water-powered car.

So far, the third-term Government’s commitment of taxpayer’s dollars pursuing a homegrown hydrogen industry is about $25 million, minuscule by international standards.

She’s named a minister for hydrogen in Mick de Brenni, a curious choice given his performance in past portfolios. And as critics have observed Queensland once had a wine industry development minister also but that didn’t last long.

Mick de Brenni swears in as Minister for Energy, Renewables and Hydrogen and Minister for Public Works and Procurement. Picture: NCA NewsWire / Dan Peled

However, there’s no doubt the world is looking for an answer to the question of how to decarbonise the transport sector and many think hydrogen versus electric cars may end up being the latest version of the VHS versus Beta debate. South Korea and Japan in particular have made significant noise about hydrogen.

In Japan, where $16 billion and counting has been poured into the development of this industry, the nation’s 7-Elevens have done a deal with Toyota to use hydrogen powered trucks to do deliveries to its 20,000 stores.

However, producing this energy source at scale is the puzzle these countries must solve because the solar and wind farms needed to power the electrolysis process to create “green hydrogen” require a significant amount of land. That’s where Queensland comes in.

We have the sunshine for the solar, an abundance of land and proximity to these nations to be able to transport liquid hydrogen by sea, not to mention a proud history as a resources exporter.

Queensland Premier Annastacia Palaszczuk met with state member for Gladstone Glenn Butcher and Minister for state development, manufacturing, infrastructure and planning Cameron Dick at Northern Oil Refinery to announce the Queensland Government's new hydrogen plan.

Under Palaszczuk, Queensland has made an admirable start with the construction of demonstration plants around Gladstone, an ideal location because the city is already an energy export hub, as well as initiatives in Townsville, Brisbane and Scenic Rim.

Renewable hydrogen will also be added to Gladstone’s natural gas network, helping to power the city’s residential, commercial and industrial customers. There are also opportunities through hydrogen to store the excess energy produced from Queensland’s growing fleet of solar and wind farms and use it as dispatchable power when the need arises.

And the Government is trialling five Hyundai NEXO hydrogen fuel cell vehicles in its fleet, which is a predictable gimmick.

Australian Gas Networks (AGN) hydrogen plant in Gladstone (artists impression, supplied)

However, the game-changer will be working out how to produce, store and transport hydrogen at an acceptable cost because right now its an incredibly expensive process.

Last month, Palaszczuk announced a deal between Government-owned generator Stanwell and Japanese energy giant Iwatani Corporation for a renewable hydrogen export facility in Gladstone. “If we can position Queensland as a key exporter of this resource, Queensland will be at the forefront of the renewable energy revolution,” she said.

Hydrogen may yet end up another uneconomic flop, like Sir Joh’s water-powered car and quack cancer cures or Peter Beattie’s forays into carbon capture and the world’s largest magnesium smelter. Yet those premiers are remembered for the vision which turned the Sunshine State into an economic powerhouse, not their failures.