Government earmarks millions to power ‘renewable energy superpower’

Nearly $100m of taxpayer funds will be poured into developing hydrogen and critical minerals projects as the Albanese government moves to increase Australia’s low emissions exports.

Quentin Roberts from EfficientSee and Emaleena Baker, strategic advisor for Australian Gas Infrastructure Group, in front of the 1.25MW electrolyser at Hydrogen Park South Australia (HyP SA), producing hydrogen for 700 homes in the area. More hydrogen electrolysers are being planned. Picture Mark Brake

Nearly $100m of taxpayer funds will be poured into developing hydrogen and critical minerals projects as the Albanese government moves to increase Australia’s low emissions exports.

The Australian Renewable Energy Agency has agreed to provide $47.5m in funding to develop a new hydrogen electrolyser in Karratha. northern Western Australia.

The 10 megawatt electrolyser, to be developed by French multinational Engie and Japanese conglomerate Mitsui & Co, will be capable of producing up to 640 tonnes of green hydrogen each year.

Climate Change Minister Chris Bowen said the project would mark a “a step-change in scale towards Australia’s vision of becoming a renewable energy superpower”.

“As we move to a more renewable economy, hydrogen will become an increasingly important part of our energy mix, and will be important in supporting industrial and hard-to-abate sectors,” Mr Bowen said.

Resources Minister Madeleine King also unveiled $50m in grants to six projects to “unlock the potential of Australia’s critical minerals sector”. The grants include $15m for a aluminium chemical plant near Queensland’s Gladstone, which will produce materials for the lithium-ion battery and synthetic sapphire markets.

There is also $15m provided for a feasibility study into a proposed project in Broken Hill that could produce “battery-ready cobalt products in Australia”.

Ms King said the projects would create new regional jobs and drive economic growth.

“Australia has the potential to become a major global supplier of critical minerals and rare earths which will be essential to help Australia and the world transition to low-emissions technology and achieve net zero emissions by 2050,” Ms King said.