Australia assigns $975 million for hydrogen, clean energy, CCUS in budget

Australia's federal government has allocated A$1.3 billion ($975 million) in its 2022-23 budget for energy security funding, including for hydrogen, LNG, carbon capture and guarantees of origin schemes, Treasurer Josh Frydenberg said March 29.

The budget reflected the coalition government's 'technology, not taxes' strategy to advance renewable and low-carbon energy production.

"Australia is on the pathway to net-zero emissions by 2050 and playing its part in responding to the critical global challenge of climate change," Frydenberg told Parliament.

The country had the highest uptake of rooftop solar in the world and "we are investing in clean hydrogen, carbon capture and storage, batteries and large‑scale solar," he said.

Some A$300 million has been earmarked for low-emission LNG and hydrogen production at Darwin, Northern Territory, with associated carbon capture and storage infrastructure, Angus Taylor, Minister for Energy, Industries and Emissions Reduction said in a related statement.

Darwin is one of seven hydrogen hubs slated to become low-cost clean energy bases with access to onshore and offshore natural gas and CO2 storage resources. It is connected with the Beetaloo and Petrel basins and the Barossa and Bayu-Undan fields.

The budget also assigned A$247.1 million to support increased private investment in low emission technologies including hydrogen and the development of a hydrogen Guarantee of Origin scheme, Taylor said.

Australia has close to 100 renewable and low carbon hydrogen projects in development or early stage production, according to S&P Global Commodity Insights' Hydrogen Production Assets database.

The Australian government said Dec.10 it has commenced trials for a Guarantee of Origin (GO) scheme for the hydrogen sector, which will pave the way to certifying the green credentials of the country's hydrogen exports for future customers.

The budget also provided A$200 million to build supply chain security via low-emission manufacturing facilities using hydrogen and ammonia, as well as carbon capture, utilization and storage in the Pilbara region in Western Australia.

Pilbara is also a renewable hydrogen hub and home to InterContinental Energy's ambitious 26 GW Asian Renewable Energy Hub.

"These measures will further support affordable, reliable and secure energy and help Australia reach its target for net-zero emissions by 2050, without imposing new taxes or financial burdens on households, businesses or industry," Taylor said.

The government had committed over A$22 billion of public investment in low emission technologies to 2030, he said.

Australia is to hold federal elections in May.