Australia sets aside A$300 million to kickstart hydrogen projects
04 May 2020
On May 4, the Australian government set aside A$300 million (£154 million / US$191 million) for hydrogen projects as the country aims to develop its hydrogen industry by 2030. The government released a statement saying that it is backing Australia to become a world leader in hydrogen production and exports by establishing the A$300 million ‘Advancing Hydrogen Fund’.
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In the statement, the country’s Energy and Emissions Reduction Minister Angus Taylor said the government is committed to developing a hydrogen industry as it could creates thousands of jobs and generate significant economic growth.
“The Australian Government has a strong commitment to building a hydrogen industry which will create jobs, many in regional areas, and billions of dollars in economic growth between now and 2050,” Angus Taylor said. “Importantly, if we can get hydrogen produced at under $2 a kilogram, it will be able to play a role in our domestic energy mix to bring down energy prices and keep the lights on.”
The government has set an economic goal for hydrogen of ‘H2 under 2’ – that is hydrogen at or under A$2 per kilogram – the first technology goal in the Technology Investment Roadmap. That’s the point where hydrogen becomes competitive with alternative energy sources in large-scale deployment across Australia’s energy systems.
The fund will back projects that align with priorities under the National Hydrogen Strategy. This includes areas such as advancing hydrogen production, developing export and domestic supply chains, establishing hydrogen hubs and backing projects that build domestic demand for hydrogen.
The Advancing Hydrogen Fund will be administered by the Clean Energy Finance Corporation (CEFC) and will provide concessional finance for projects that will support a national hydrogen industry.
Finance Minister Mathias Cormann said the Government is drawing on the energy and financial markets expertise of the CEFC, which has invested more than A$7.7 billion in clean energy so far, to help drive investment in hydrogen.
“This new fund will be a catalyst for the future growth of Australia’s hydrogen industry, which has the potential to boost Australia’s energy security, while creating more new jobs across the country and becoming a major new export industry,” Senator Cormann said.