Page 7 - AsiaElec Week 40

AsiaElec COMMENTARY AsiaElec

Counter point alternative fuels.
Australia’s leading gas industry bodies released What next
a joint report on September 25 that highlighted Given that the federal government has already
the economic and climate benefits of using committed to a gas-led economic recovery, it
hydrogen within the existing natural gas grid. makes sense that it would also want to ensure
The major conclusion of the report, “Gas that billions are not wasted in the support of an
Vision 2050: Delivering a Clean Energy Future”, industry that a shift towards renewables threat-
is that net-zero emissions can be reached with ens to make obsolete.
hydrogen at half the cost of full electrification. Australian Prime Minister Scott Morrison
Energy Networks Australia’s acting CEO, announced in mid-September a slew of gas-fo-
Tamatha Smith, said: “Policy settings aimed cused measures aimed at helping the economy to
at reducing emissions should recognise that recover from the pandemic-induced recession.
continuing to use gas infrastructure is the low- Among these were plans to “reset” the East
est-cost option to reach net-zero emissions from Coast gas market by encouraging both upstream
the energy sector by 2050.” Australian Petro- and mid-stream development.
leum Production and Exploration Association Morrison committed AUD28.3mn
(APPEA) CEO Andrew McConville said: “The ($20.66mn) of Commonwealth funding to
report highlights the vital role of natural gas find ways to unlock five key gas basins, starting
in emissions reduction through fuel switching with the Northern Territory’s Beetaloo Basin as
from more emissions-intensive fuels to gas. Gas well as Queensland’s North Bowen and Galilee
is also one of Australia’s most important exports, basins.
contributing AUD47bn [$33.04bn] to our econ- Morrison is convinced that the key to the
omy in 2019-20.” Canberra released its National country’s future economic success lies in boost-
Hydrogen Strategy in November 2019, making ing domestic manufacturing with cheap gas
clear its goals around developing a leading supplies. It is an ideology first promoted by the
hydrogen industry. Since then the government National COVID-19 Commission Advisory
has taken several important steps forward. Board (NCC), which has itself been questioned
Australia agreed in early September to con- over its lack of support for renewable energy
duct a joint study with Germany on the devel- solutions.
opment of a hydrogen supply chain between When pressed by a Senate committee in
the two countries. Australian Trade Minister August, NCC head Neville Power said his panel
Simon Birmingham described the agreement at had not looked at renewable energy in the wide
the time as “critical” to developing “Australia’s energy context and that it was not the commis-
future as a powerhouse in clean energy exports”. sion’s role to “recommend specific projects”.
The agreement follows a similar deal signed By leaving the door open to blue hydrogen
at the start of the year with Japan, and another coupled with CCS, the Australian government
with South Korea in November 2019. may have found a way to support the upstream
Australia, which last year took the global top industry in both the short, mid and long term.
spot in terms on LNG exports, needs to future- It remains to be seen how the technology
proof its gas industry amid an increasing push holds up and whether it can match Canberra’s
by the world’s biggest importers to embrace aspirations.™

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