Australia is supporting its clean hydrogen export industry through a new initiative to attract overseas investment in its hydrogen supply chains.
The Morrison Government has announced AU$150 million Australian Clean Hydrogen Trade Program (ACHTP), which would support Australian-based hydrogen supply chain projects that secure overseas public or private sector investment.
Prime Minister Scott Morrison said, “It is critical that we work closely with our international partners such as Japan to deliver on Australia’s low emissions objectives.”
“Clean hydrogen is central to both Australia’s and Japan’s plans to achieve net-zero emissions while growing our economies and jobs,” he added.
The first phase of ACHTP will focus on exporting clean hydrogen to Japan under the Japan-Australia Partnership on Decarbonisation through Technology. Last year, both countries signed an agreement to support initiatives to drive the transitions to net-zero emissions jointly. The focus remained on lower emissions LNG production, transport and use; clean fuel ammonia, clean hydrogen and derivatives produced from renewable energy or from fossil fuels with substantial carbon capture, utilisation and storage; carbon capture utilisation and storage; carbon recycling; and low emissions steel and iron ore.
The ACHTP will support projects to develop export supply chains and commercialise the production of clean hydrogen and derivative clean hydrogen-based compounds, such as clean ammonia. The Program will be funded over five years from the $565.8 million committed for low emissions technology international partnerships in the 2021-22 Budget.
Australian hydrogen production for export and domestic use could also generate more than $50 billion in additional GDP by 2050.
Angus Taylor, Minister for Industry, Energy and Emissions Reduction, added, “Establishing clean hydrogen supply chains will facilitate investment into Australia and will create jobs for Australians, many in our regional areas.”
Last month, Australia and South Korea also committed to a net-zero emissions future by agreeing on detailed work plans on clean energy technology and critical minerals, following the high-level partnership agreed between leaders ahead of the COP26 Summit in Glasgow. Australia announced an initial commitment of $50 million to the partnership, with South Korea to match Australia’s funding contribution subject to domestic processes. Together, the governments aim to invest up to $100 million towards initiatives under the partnership.