$275m Federal initiative to help Darwin become home of clean hydrogen hub

The federal government has singled out Darwin as a future clean hydrogen hub and is putting down more than $275 million to make it happen.

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The Federal Government has singled out Darwin as the home of a future clean hydrogen hub and is putting more than $275 million on the table to help make it happen.

Darwin is among four regional centres the Morrison Government wants to share in the funding.

The funding will be part of a federal budget initiative that will see $539.2 million in new clean hydrogen, carbon capture, use and storage (CCS/CCUS) projects.

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Hubs are regions where hydrogen users, producers and exporters are co-located. The hubs seek to concentrate demand for hydrogen in one geographic region helping to reduce costs and share information. Darwin’s Middle Arm Middle Arm is home to two of the Northern Territory’s most significant gas processing facilities in Santos Darwin LNG and the INPEX and has a planned Industrial and Energy Precinct where the hydrogen hub would be located.

Darwin is considered a strong regional hydrogen hub candidate because of:

• Existing infrastructure that can be used, like port facilities, gas pipelines
• Proximity to energy resources
• Large scale industrial energy demand
• Skilled workforce

Other locations identified by the Morrison Government as highly prospective regional hubs are Bell Bay (TAS), Pilbara (WA), Gladstone (QLD), La Trobe Valley (VIC), Eyre Peninsula

(Whyalla – SA), Hunter Valley (NSW)

Prime Minister Scott Morrison said the new investments in clean hydrogen and carbon capture technologies are set to create around 2500 jobs, support Australian industry and manufacturing into the future and further drive down Australia’s emissions.

He said one of the priority technologies identified in the Government’s Technology Investment Roadmap is clean hydrogen — this includes both renewable and low emissions

hydrogen.

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The hubs are expected to be announced in 2022 and applicants will be expected to have an industry lead, but be made up of a consortia of Australian and international industry players, as well as with potentially state and international government backing.