Half-a-billion dollars for new hydrogen project grants

The Morrison government will invest nearly $500m in new grants to help kickstart the development of a clean hydrogen industry in Australia.

Energy Minister Angus Taylor says the hydrogen hubs will create domestic demand needed to help the hydrogen industry drive down cost. Picture: NCA NewsWire / Gary Ramage

The Morrison government will invest nearly half a billion dollars in new grants to accelerate Australia’s clean hydrogen industry with funding prioritised for regional areas interested in transitioning their local economies from fossil fuel jobs.

The funding will go towards creating up to seven clean hydrogen industrial hubs with the government identifying seven locations based on their interest, existing capabilities, infrastructure and resources.

They include Bells Bay in Tasmania, South Australia’s Eyre Peninsula, Gladstone in Queensland, the NSW’s Hunter Valley, the La Trobe Valley in Victoria and the Pilbara in West Australia, however the grants are available Australia wide.

Scott Morrison said the creation of new hydrogen hubs would create jobs across Australia and fast-track Australia’s push to be a global leader in the new energy economy.

“Our plan to invest and develop low emissions industries will mean more jobs for Australian workers, particularly in our regions, cheaper energy for businesses and lower emissions,” the Prime Minister said.

“We are accelerating the development of our Australian hydrogen industry and it is our ambition to produce the cheapest clean hydrogen in the world, transforming our transport, energy, resources and manufacturing sectors.

“This is good for jobs, good for our environment and contributes to our global effort to reduce emissions through technology not taxes.”

Energy Minister Angus Taylor said the hydrogen hubs would create the domestic demand needed to help the hydrogen industry drive down costs and scale-up production creating new job opportunities for our regions.

“Hydrogen hubs are crucial to realising the Morrison government’s vision of making Australia a major global player in hydrogen production and exports by 2030,” he said.

“We are looking to partner with industry, and work with state and territory governments to make this a reality.

“Australia has the potential to be a world leader in the production of affordable and clean hydrogen, and our hydrogen industry could create around 8,000 new Australian jobs and generate over $11 billion a year in GDP by 2050.”

The new funding takes the government’s total spending on growing the hydrogen industry to $1.2 billion.

Earlier this year amid clashes between Nationals and Liberal MPs over coal-fired power stations, Mr Morrison said it was possible for Australia to reach net zero emissions sooner than 2050 under the government’s package for future technologies to lower emissions, headlined by its investment in hydrogen.

The projects are expected to be announced from next March and delivered within three and a half years.