Australia’s updated National Hydrogen Strategy (the Strategy), unveiled today by Minister for Climate Change and Energy, the Hon Chris Bowen MP, recognises the important role hydrogen can play in reducing emissions and underpinning a cleaner energy future, but takes a relatively narrow approach that risks restricting Australia’s journey to net zero and limiting opportunities for international trade.
A strategy underpinned by a technology neutral approach to hydrogen production would better recognise important roles for renewable hydrogen as well as for clean hydrogen[1] produced using coal, natural gas or biomass with Carbon Capture Utilisation and Storage (CCUS).
The updated Strategy has narrowed support to include only renewable hydrogen – a move which risks limiting Australia’s trade opportunities and net zero levers and could threaten existing jobs and industry.
Low Emission Technology Australia (LETA), in collaboration with industry and international trading partners, is exploring opportunities to develop the clean hydrogen that will be required in the global transition to a net zero future.
LETA Chief Executive Officer Mark McCallum said that while the Government has narrowed its support for hydrogen production to focus on a singular production pathway, industry will continue to develop alternative production pathways and business models to ensure that Australia is not left behind.
“In the absence of investment from the Federal Government, industry will continue to explore the production of clean hydrogen in order to secure Australia’s role in a global net zero future.
“Supporting all production pathways and technologies that are capable of producing clean hydrogen gives our emerging hydrogen industry flexibility to pursue the pathways that best meet customer preferences as global markets emerge.
“Limiting government investment in hydrogen to renewable sources only stands in contrast with the approach taken internationally, in the US for example through the Inflation Reduction Act, which provides significant support for CCUS and for all forms of clean hydrogen production.
“As other nations invest in low emission technology, including clean hydrogen production, our long-term traditional trading partners like Japan and Korea are looking to Australia for similar signals that we can be relied upon as a leading energy exporter and ensure international competitiveness in a lower-carbon future.
“Expanding investment to include all production pathways to clean hydrogen would increase opportunities to decarbonise while ensuring a future for industries that support Australian jobs and households every day.
“Australia’s large energy resource base (our coal and natural gas resource endowment is a key and longstanding part of Australia’s world class energy resources); our established and long-standing commercial relationships with both domestic customers and trading partners (Australia’s successful coal and natural gas international trading relationships span generations); significant carbon dioxide (CO2) storage potential; and technical expertise and experience mean that Australia is well placed to see its comparative advantage in energy and resource production and export utilised to develop a competitive clean hydrogen industry.”
LETA remains committed to collaborating with government, industry, and our international trading partners to further explore new technologies that will support Australia to reach net zero emissions while ensuring a future for the critical industries that support Australian jobs and households every day.
1“Clean hydrogen, consistent with the definition used by the International Energy Agency (IEA) (see, for example http://www.iea.org/fuels-and-technologies/hydrogen) is produced from renewables, nuclear (noting nuclear-based hydrogen is not an option in Australia at present) or coal and natural gas with CCUS.” Low Emission Technology Australia’s Submission to the Department of Climate Change, Energy, the Environment and Water National Hydrogen Strategy Review Consultation Paper, July 2023
ENDS
SUPPLEMENTARY DOCUMENTS
ABOUT LOW EMISSION TECHNOLOGY AUSTRALIA
Low Emission Technology Australia (LETA) is a not-for-profit investment fund that accelerates the development and large-scale deployment of technology solutions to reduce and remove greenhouse gas emissions from critical industries like steel, cement and power generation.
LETA’s investment in technology unlocks a faster, cheaper pathway to net zero for hard-to-abate industries that are critical to the economy, provide thousands of Australian jobs and support households every day.
Since 2006, LETA members have contributed more than $400m to low emission projects and unlocked a total investment of $1.1b. LETA members recognise the crucial role of low emission technology in enabling a net-zero future for their industries, their customers, their workforces and Australian communities.
[1] “Clean hydrogen, consistent with the definition used by the International Energy Agency (IEA) (see, for example www.iea.org/fuels-and-technologies/hydrogen) is produced from renewables, nuclear (noting nuclear-based hydrogen is not an option in Australia at present) or coal and natural gas with CCUS.” Low Emission Technology Australia’s Submission to the Department of Climate Change, Energy, the Environment and Water National Hydrogen Strategy Review Consultation Paper, July 2023