"Fossil Fuel Lobby Pushes Hydrogen As Gas"
Producers of gas claim that the government may slow down the development of the new clean hydrogen industry. This might happen if they don't let fossil fuels be a part of the new fund worth $2 billion to support the industry.
The Albanese government wants Australia to become a renewable-energy superpower. This is what the federal budget was designed for. The government has revealed a $2 billion program called Hydrogen Headstart. Private companies can get money from this program if they invest in green hydrogen projects.
Chris Bowen, the Climate Change and Energy Minister, has made an announcement. He has called for Australia to reduce their carbon emissions by 2030. Australia is one of the world's largest emitters of greenhouse gases. Bowen has said that Australia must do more to fight climate change.
Many governments, such as the US and EU, support hydrogen as a fuel option. They invest billions in the industry to replace coal, gas, and oil for heating, electricity, transport, and manufacturing. Hydrogen also burns cleanly and only releases water vapor.
Fuel can be made with no emissions by using renewable energy to split water into hydrogen and oxygen. This is called "green hydrogen". Fuel can also be made by burning coal or gas, which creates emissions. This is called "grey hydrogen". If the emissions are captured and stored, it's called "blue hydrogen".
No one is producing blue or green hydrogen in large amounts globally. People hoped for expansion, and Joe Biden's funds are available for both. Samantha McCulloch, CEO of Australian Petroleum Production and Exploration Association, says this will make Australia fall behind the US in advancements. Her members include Australia's largest gas producers.
As a country, we need to compete with other countries who want to quickly and cheaply develop a hydrogen economy. Our approach should be unbiased towards any particular method or color. That's what one expert suggested.
The government is being asked to focus on blue hydrogen, but the minister says people mainly want green hydrogen.
People really want Australian green hydrogen, especially from Europe. Germany is at the center of this demand.
Australia needs to prioritize building green industries as other countries have launched huge green funds to attract investors. Bowen acknowledges that Australia is in a global competition for capital.
Biden made a plan to give $550 billion to industries to help with inflation. He wants to give money to businesses and also give tax breaks for clean industries. The EU also said they will give $270 million to green industries in February. They will give tax breaks to businesses that invest in clean technologies.
Bowen said we must obtain the capital. $2 billion is needed to stay in the game. We need the capital.
The government gives money to companies. Companies have to start making things to pay the money back.
Mining billionaire Andrew Forrest supports Bowen’s move to go green with hydrogen.
McCulloch thinks Australia should focus on blue hydrogen due to their large gas production. This could help promote the growth of the emerging industry.
She said blue hydrogen could be a great option for countries with abundant gas and CO2 storage resources like Australia. It's a cheaper and more established way to produce hydrogen.
The Inflation Reduction Act is different from other ways. They're letting the market decide how to bring hydrogen to people. Innovation and cheap ways are being supported.
The oil and gas industry released a report on Sunday. They suggested creating nine "net zero zones" in Australia. These zones would share infrastructure for gas, renewable energy, carbon capture, and low-carbon hydrogen production. The report came just before some critical comments.
Regional zones, found in Adelaide-Port Augusta, Melbourne-Gippsland, Sydney-Newcastle, WA's Pilbara, and Queensland's Surat Basin, may attract investment and help industries move toward net zero emissions quickly.
McCulloch suggests that using current infrastructure can help prevent regions from being left behind during changes to the economy. These regions have been important to Australia's economy in the past.
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