The Australian government has announced a $1.4bn “Hydrogen Headstart” fund to develop the country’s hydrogen energy industry.
The fund, announced in the country’s annual budget, will support price competitiveness for the green energy. This will come through allowing state bodies more financial leeway to competitively price new hydrogen contracts. Money will also be used to bridge the initial cost-gap of new hydrogen start-ups. From close to zero hydrogen at the beginning of the decade, Australia already produces 500,000 tonnes per year of green hydrogen, a tally which is expected to more than double by 2025.
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Treasurer Jim Chalmers stated: “Australia can be a world leader in producing and exporting hydrogen power – while reducing our emissions in heavy industry here at home. […] Hydrogen power means [the companies] Wollongong, Gladstone and Whyalla can make and export everything from renewable energy to green steel. Seizing these kinds of industrial and economic opportunities will be the biggest driver and determinant of our future prosperity.”
The mentions of major hydrogen project Gladstone and steelmaker Whyalla indicate Australia’s long-term vision for hydrogen as a renewable energy source and a green steel proponent. Whyalla’s operators Yieh corp recently announced the transition towards hydrogen based green steel.
The Gladstone Hydrogen Park is is one of Australia’s largest hydrogen projects, expected to have a 100 tonnes per day hydrogen production capacity by 2026. The park will use solar energy from the Aldoga photovoltaic plant, a 600MW solar farm set to begin generation by the end of 2025. The plans also include an under-construction electrolyser manufacturing facility, with a prospective 2GW per annum output.
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Australia the hydrogen superpower
A report by analyst company GlobalData showed that Australia has almost 10% of all upcoming low-carbon hydrogen projects globally. Furthermore, estimates have Australia producing as much as 8 million tonnes per year (MTPA) of green hydrogen, if not more, with a minimum projected outlook of 5 mtpa.
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By GlobalDataChalmers has said he aims to make Australia “a renewable energy superpower”. The country has already made strides towards this, with a world-leading number of hydrogen projects already announced. Chief among these is the Western Green energy hydrogen plant. Scheduled for completion by 2030, the plant will have 28,000MW of electrolyser capacity, capable of producing 3.5 mtpa.
