An extra $150 million will be sunk by the federal government into hydrogen industrial hubs that all but guarantees a project in every state and territory across the country.
As the government boosts its environmental credentials ahead of an increasingly tough United Nations climate conference in Glasgow in November, Prime Minister Scott Morrison and Energy Minister Angus Taylor on Monday will announce the additional cash into hydrogen related industries.
Hydrogen has emerged as a key element of the federal government’s emissions reduction strategy with a stated aim of producing hydrogen at $2 a kilogram. At that price, it is expected hydrogen is competitive with alternative energy sources.
The government has already committed more than $300 million towards four hydrogen hubs that will bring together producers, users and exporters in one location to reduce cost.
The most likely hubs were identified to come from Bell Bay in Tasmania, Darwin, South Australia’s Eyre Peninsula, the Hunter Valley in NSW, Victoria’s La Trobe Valley and the Pilbara region of Western Australia.
These locations have expressed interest in the concept, building on existing infrastructure and resources available in each region.
The extra $150 million will enable the development of two more hubs.
Mr Taylor said the hubs were crucial to the government’s hopes to turn Australia into a major hydrogen production and export country by 2030.
“We are looking to partner with industry, and work with state and territory governments to make
this a reality,” he said.