The Federal Government has announced that its 2021-22 Budget will invest a further $539.2 million in new clean hydrogen, carbon capture, use and storage (CCS/CCUS) projects, set to create around 2,500 jobs, support Australian industry and manufacturing into the future and further drive down Australia’s emissions.
$275.5 million will be allocated to accelerate the development of four additional clean hydrogen hubs in regional Australia and implement a clean hydrogen certification scheme, and $263.7 million will support the development of CCS/CCUS projects and hubs.
Prime Minister Scott Morrison said the world was changing rapidly and Australia will need to be competitive in a new energy economy to support the jobs of Australians, especially in heavy industries and regional areas that depend on affordable and reliable energy.
“It is essential we position Australia to succeed by investing now in the technologies that will support our industries into the future, with lower emissions energy that can support Australian jobs,” the Prime Minister said.
“There is a strong appetite from business for the new emissions reduction technologies that they know will be needed to run their operations and keep employing Australians and grow jobs for the future.”
“World-leading projects like these are about cutting emissions and creating jobs.”
“We want to make clean energy more affordable and reliable, while looking for ways our investments can get more people into work,” he said.
“We cannot pretend the world is not changing. If we do, we run the risk of stranding jobs in this country, especially in regional areas.”
“Australia can and will continue to meet and beat our emissions reduction commitments, while protecting and growing jobs, by commercialising low emissions technologies like hydrogen and CCS/CCUS, that can support our industries and critical economic sectors. And when we commercialise those technologies, they also create new jobs.”
Minister for Energy and Emissions Reduction, Angus Taylor, said the Government is backing technological solutions to reduce emissions, not big new taxes.
“The Government’s investment will reduce technical and commercial barriers to deploying these technologies. It will encourage new large-scale investment from the private sector, creating jobs and supporting Australia’s economic recovery, particularly in regional areas.”
“It’s a tangible example of our commitment to being a low emissions technology leader and reducing emissions through technology not taxes, or imposing costs on households, businesses or the economy,” he said.
“Australia’s potential to supply our trading partners with low cost, clean energy and permanently and safely store emissions underground has our trading partners, including Japan, South Korea and Singapore excited.”
Minister Taylor said the Government is actively pursuing opportunities to collaborate on low emissions technologies with Germany, Japan, Singapore, South Korea, the United Kingdom and the United States.
Chief Executive Officer of the Minerals Council of Australia (MCA), Tania Constable, said the Federal Government’s announcement to support investments in clean hydrogen production and carbon capture technologies offers a pragmatic pathway to mobilising technologies which can sustainably support Australia’s economic interests and a net-zero emissions future.
“It strengthens Australia’s national system of technological innovation which is critical to accelerate and scale-up national climate actions in support of the climate goals of the Paris Agreement.”
“There’s a race across the world to develop a hydrogen economy. With an abundance of natural feedstocks, Australia is well placed to take advantage of this approach.”
“The technology-led approach to meeting Australia’s 2030 target and ultimately net zero emissions aligns very strongly with the MCA’s Climate Action Plan,” she said.
“The MCA has long advocated for a technology-neutral approach to reducing emissions which embraces global best practice and all technologies such as hydrogen, CCUS, advanced nuclear technology as well as renewables, gas, coal with CCUS and pumped hydro (among others).”
Ms Constable said Glencore’s CTSCo project at Millmerran power station in Queensland is demonstrating the potential of CCS to reduce emissions from Australia’s coal power stations, which still provides around 65 per cent of Australia’s electricity.
“This project also provides the basis for a carbon storage hub for existing and emerging industries in Queensland such as hydrogen,” she said.
“Australia’s world-leading resources sector has been at the forefront of developing and adopting low-emissions technologies which are central to Australia’s and indeed global efforts to address climate change.”