Scott Morrison in $100m boost for hydrogen

Three hydrogen plants have been approved with $100m of federal government funding, as Scott Morrison ramps up his climate change credentials.

Energy Minister Angus Taylor. Picture: John Feder

Three hydrogen plants have been approved with $100m of federal government funding, as Scott Morrison ramps up his climate change credentials amid global pressure for Australia to adopt more ambitious policies.

Three companies have been awarded the conditional finance from the Australian Renewable Energy Agency, with the budget for the program increasing from the original allocation of $70m.

Engie Renewables Australia has received $42.5m to create a 10 megawatt electrolyser that will produce renewable hydrogen in Western Australia’s Karratha, while there was $28.7m for a facility in Warradarge to blend the resource with gas.

There was also $32.1m given to Australian Gas Networks a hydrogen and gas plant in Victoria’s Wodonga.

The three projects, with an end value of $161m, were chosen from a shortlist of seven applicants for the Renewable Hydrogen Deployment Funding Round announced last week.

Energy Minister Angus Taylor said the projects were a step towards Australia establishing itself as a “world leader” in ­hydrogen production.

“The Morrison government is committed to building a clean and competitive hydrogen industry in Australia, and these projects are a huge step towards Australia cementing its place as a world leader,” Mr Taylor said.

“Not only will these projects allow for new export opportunities, but they will build-up domestic demand so we are able to reduce emissions both here at home and overseas. We’re excited to be partnering with industry in regional Australia to unlock the energy and economic benefits of hydrogen.”

The projects are expected to create more than 200 jobs in the construction phase.

The National Hydrogen Strategy forecasts that hydrogen will generate 8000 jobs and $11bn a year in gross domestic product by 2050.

In a speech to the National Press Club, the Prime Minister said producing hydrogen at $2 a kilogram was critical to achieving net-zero emissions by 2050.

“If we can produce hydrogen … at $2 a kilo, then, we can get there,” Mr Morrison said. “If we can’t, it’s going to be very hard.”

ARENA chief executive Darren Miller said a local hydrogen industry would help reduce global emissions. “One of the projects will see clean hydrogen used to make ammonia for export and the other two will blend clean hydrogen into our gas pipelines to help decarbonise our natural gas networks,” he said.

“Our hydrogen industry in Australia is in its infancy, so the lessons learned from these three projects will be important in driving our hydrogen economy.”