Prime Minister Scott Morrison has announced the government will step up grant funding for hydrogen projects to boost clean energy output, as it faces international pressure to set more ambitious carbon emissions reduction targets for 2030.
The government plans to add an extra $150 million to existing funding, increasing grants to $464 million for feasibility studies and the construction of hydrogen projects in seven hubs around the country.
“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,” Morrison said in a joint statement with Energy Minister Angus Taylor.
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The announcement came as Morrison headed to Washington to meet with U.S. President Joe Biden, Japanese Prime Minister Yoshihide Suga and Indian Prime Minister Narendra Modi to discuss climate policy.
The Morrison Government has so far resisted international pressure to commit to a net zero carbon target for 2050 or further cuts than a plan to reduce emissions by 26-28 per cent by 2030 from 2005 levels ahead of a United Nations climate summit in November.
Instead it has committed to spend $18 billion over the coming decade on a range of technology to help reduce emissions, including hydrogen, energy storage, and carbon capture and storage (CSS).
Australia’s hydrogen industry said more is needed from the government to help the industry reach commercial scale.
“It’s certainly a vote of confidence in the industry and we hope there’s more to come,” Australian Hydrogen Council CEO Fiona Simon said.
“There’s no doubt that Australia has the renewable energy resources, the technical skills, and the track record with international partners to become a global hydrogen leader.
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“Grant funding is an important part of the bigger picture.”
Dr Simon said the decision to increase the number of hubs from five to seven is good news for jobs and getting the industry to scale as hubs drive collaboration and shared benefit.
“Globally, hubs are considered vital to establish scale in clean hydrogen,” Dr Simon said.
“We now await broader planning and regulatory architecture being put into place to enable hydrogen to reach commercial scale.”
