NSW Government’s hydrogen strategy drives incentives for Hunter-based industry

The NSW Government’s release of the hydrogen strategy will help to provide more focus for research and development, innovation, and incentives for Hunter-based industries.

Big plans to supercharge the production of clean hydrogen in NSW is set to provide more incentive for Hunter-based major industries to drive decarbonisation efforts.

The NSW Government’s long awaited hydrogen strategy will provide up to $3 billion in incentives for green hydrogen producers, expected to create more than 10,000 jobs within a decade and attract more than $80 billion in investment by 2050.

The region was chosen earlier this year as the Hunter Hydrogen Technology (NewH2) Cluster — the only regional cluster for NSW — to enhance technology and capability in the hydrogen value chain across the state.

Green hydrogen has been touted as a game changer.

Business Hunter CEO Bob Hawes said the government’s release of the statewide, masterplanned approach will help provide more focus for research and development, innovation and transformation and incentives going forward.

“For a lot of businesses it will help us fill in the gap, what we do to transform or to convert to new forms of energy,” Mr Hawes said.

“The detail that wasn’t there in the general road map that they released earlier is very distinct here, and very much targeting the Illawarra and the Hunter as the front and centre of energy transformation in NSW and ensuring that hydrogen is part of our future.

“By consolidating and expanding on all the previous measures into a clear and comprehensive package outlined in the Strategy, the government is enabling Hunter industries to charge forward with the strong diversification platform in partnership with hydrogen hubs that will drive the application of hydrogen for use and export from this region.”

CEO Hunter Business Chamber Bob Hawes said the Hunter has the capacity to lead energy transformation in NSW and ensure hydrogen is part of our future. Supplied.

Mr Hawes said the big investors are looking to the government to give them pointers on making the right decisions.

“If we’re able to get a green energy supply up and going here in a big way, and have that part of the export industry to help our net carbon, that’s going to be great for the region and the state,” he said.

“The collaborative measures we’ve been doing under the NewH2 has been really good.

“It’s a strong foundation for taking advantage of some serious investment in this region, to be part of that future development of the hydrogen industry.”

The NewH2 Cluster Manager Clare Sykes said the Hunter is already stepping ahead in preparedness and has already made incredible inroads in driving collaboration and connections across a number of stakeholders.

“The government is enabling NewH2 to communicate with advanced and heavy industry with confidence and clarity and begin the work of building a viable platform in partnership with hydrogen hubs that will drive the application of hydrogen for use and export from this region,” Ms Sykes said.

The strategy is also set to present an enormous industrial development opportunity for the Hunter.

“The Strategy signals confidence for large, diverse and complex industries like that found in the Hunter to make the transition and protect and grow jobs, and it also provides confidence for emerging green industries to establish in the region,” Ms Sykes added.

“The Hunter is rapidly building from our strong established hydrogen framework into a full scale-up of research, development, commercialisation and use of hydrogen fuels from this region.

“Rather than leaving established energy industries at a loose end, this strategy will incentivise diversification and scale-up to encourage demand as well as production – we hope this can address the uncertainty that has existed.”

But Mr Hawes highlighted there is a still a future for the coal industry in the Hunter.

“So much of our coal is responding to an international market, we’re about seeing that industry continuing on, but we can build these new industries and develop existing industry in addition to those older established industries,” he added.

Touted as a game-changer, green hydrogen can be used by heavy industries in a way other renewable sources can’t, to manufacture steel without emitting greenhouse gases.

The NSW Government aims to reduce the cost of producing green hydrogen from about $6 per kilogram to just $2.80 per kilogram by 2030.

The strategy has outlined three pillars for delivery which includes a statewide masterplan to enable investment, establishing strong foundations for industry transition, and incentivising rapid scale development, production, domestic uptake and international export.