New South Wales has unveiled a hydrogen strategy designed to speed up its transition to zero emissions by giving $3 billion in incentives and attracting $80 billion in new infrastructure.
Premier Dominic Perrottet want to make NSW a real hydrogen superpower
The strategy outlines a range of hydrogen uses such as a replacement for petrol and diesel in transport, injection into gas distribution networks and becoming part of a blend with natural gas for use in manufacturing facilities.
Treasurer and Energy Minister Matt Kean said, “It sets NSW up to be the leading producer of green hydrogen in the world, drawing on our huge renewable resources and our highly skilled workforces with the industrial capability in the Hunter and Illawarra,” Mr Kean said.
“Hydrogen will not only help the state halve our emissions by 2030 and get to net zero by 2050, it will create new opportunities for our heavy industry, and an economic bonanza of investment and jobs.
“This strategy is forecast to more than halve the cost of green hydrogen production in NSW and will make NSW the best place to invest in hydrogen in the world.”
Mr Kean said the strategy involved up to $3 billion in incentives, which would include exemptions from government charges for green hydrogen production and a 90 per cent exemption from electricity network charges for green hydrogen producers who connect to parts of the network with spare capacity.
The founder and chairman of Fortescue Future Industries, which is spearheading his green energy strategy, praised NSW’s plan to establish itself as an energy and economic giant.
Mr Forrest said, “At [Fortescue Future Industries] we are doing everything we can as a business to lead the world effort to lower emissions. We are planning to deliver 15 million tonnes of renewable green hydrogen to the world by 2030 – increasing to 50 million tonnes per year thereafter.
“We are committed to working with the NSW government to support their ambitions and develop green hydrogen hubs together.”
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Major trading partners such as South Korea and Japan have also put green hydrogen at the centre of their decarbonisation plans.
The strategy outlines a range of hydrogen uses such as a replacement for petrol and diesel in transport, injection into gas distribution networks and becoming part of a blend with natural gas for use in manufacturing facilities.
It could also be used for on-demand electricity generation and exported overseas.
Treasurer and Energy Minister Matt Kean said the strategy would set the state up for the future.
“It sets NSW up to be the leading producer of green hydrogen in the world, drawing on our huge renewable resources and our highly skilled workforces with the industrial capability in the Hunter and Illawarra,” Mr Kean said.
“Hydrogen will not only help the state halve our emissions by 2030 and get to net zero by 2050, it will create new opportunities for our heavy industry, and an economic bonanza of investment and jobs.
“This strategy is forecast to more than halve the cost of green hydrogen production in NSW and will make NSW the best place to invest in hydrogen in the world.”
Mr Kean said the strategy involved up to $3 billion in incentives, which would include exemptions from government charges for green hydrogen production and a 90 per cent exemption from electricity network charges for green hydrogen producers who connect to parts of the network with spare capacity.
There would also be a hydrogen refuelling station network to be rolled out across the state.
In a statement, energy infrastructure company Jemena said that “a renewable gas target of around 10 per cent should be introduced” in NSW to bring more hydrogen to market as quickly as possible.
“This is great recognition of hydrogen’s role as a game-changer for not only the energy sector, but for the whole of the NSW economy. The strategy places Australia well on the path towards becoming a hydrogen superpower,” Jemena’s executive general manager of networks Shaun Reardon said.
“We know green hydrogen has a central role to play in the decarbonisation of the NSW gas distribution network, and that it will prove crucial in powering those industries that can’t be easily electrified, such as manufacturing.”
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