Page 6 - AsiaElec Week 40

AsiaElec COMMENTARY AsiaElec

Australia bets on hydrogen

The Australian government is looking to future proof the country’s gas

industry by backing the development of a world-class hydrogen sector

AUSTRALIA ASIA’S major importers of liquefied natural gas the minister set aside AUD13bn ($9.14bn) in
(LNG) have begun looking to hydrogen as a funding for the Clean Energy Finance Corp.,
WHAT: cleaner source of energy as they seek to cut down AUD2.9bn ($2.04bn) for an emissions reduc-
Australia has allocated on their carbon emissions. tion fund, AUD1.4bn (984mn) for the Aus-
billions in funding The Japanese government declared its com- tralian Renewable Energy Agency (ARENA)
for low-emissions mitment to a hydrogen-fuelled future in 2017, and AUD1bn ($702.9mn) for the Australian
technologies, including while both South Korea and China have made Research Council (ARC).
hydrogen similar commitments. As major hydrocarbon Additional funding will also go towards
consumers seek out new means of reducing CSIRO-managed grants programmes as well as
WHY: greenhouse gas (GHG) emissions, exporters co-operative research centres.
LNG buyers throughout need to start thinking about the future. Taylor advertised the government’s com-
Asia are beginning Australia has seen its opportunity to steal a mitment to “clean hydrogen”, rather than sim-
to ramp up their march on its gas export rivals in the Middle East, ply green hydrogen. This leaves the door open
commitment to the clean North America and Russia, aiming to future- for the domestic gas industry to invest in car-
fuel proof its gas industry by developing a worldclass bon capture and storage (CCS) to future-proof
hydrogen export sector. blue hydrogen operations. The government has
WHAT NEXT: The government has earmarked AUD18bn not set a target for its green and blue hydrogen
Australia has left the door ($12.65bn) of funding over the next decade mix yet, with the minister telling the country’s
open to blue hydrogen for a portfolio of low-emissions technologies, national broadcaster ABC on September 23 that
paired with CCS, but the including “clean” hydrogen. Canberra’s focus Canberra expects the mix to move “over time”.
technology still needs to on developing hydrogen is welcome news for He said: “We’re already major hydrogen pro-
prove itself the Australian gas industry, which has touted ducer. We use hydrogen to produce fertilisers
the economic decarbonisation potential of and plastics and other materials now. But there
the cleaner fuel at a fraction of the cost of full is potential, over time, to migrate towards green
electrification. hydrogen and to use [CCS] to decarbonise the
process of producing hydrogen.” Canberra’s bal-
Hydrogen funding anced approach to the greenblue debate is good
Australian Energy Minister Angus Taylor news for the country’s gas players, which have
unveiled the first annual statement of the gov- begun arguing against full electrification of the
ernment’s technology roadmap on September economy in order to reach net-zero emissions
21. by 2050.
In his statement the National Press Club,

P6 www. NEWSBASE .com Week 40 07•October•2020