The federal budget, unveiled by Treasurer Jim Chalmers on Tuesday night, revealed Queensland’s premier hydrogen hub of Gladstone is set to benefit from a $2bn program designed to make Australia “a world leader in producing and exporting hydrogen power”.
In a budget framed partly as “laying the groundwork” of the nation’s future, the Treasurer unveiled the $2bn Hydrogen Headstart program to provide cash to projects through “competitive production contracts”.
“(This funding is so) Australia can be a world leader in producing and exporting hydrogen power – while reducing our emissions in heavy industry here at home,” he said.
“Hydrogen power means Wollongong, Gladstone and Whyalla, can make and export everything from renewable energy to green steel.”
The Hydrogen Headstart program, to be operated by the AREA and the Department of Climate Change, Energy, the Environment and Water, will provide revenue support for investment in renewable hydrogen production through competitive production contracts for large scale projects.
“Seizing these kinds of industrial and economic opportunities will be the biggest driver and determinant of our future prosperity,” Mr Chalmers said.
Hydrogen can be combusted for industrial heat, used as a chemical input for green manufacturing, a fuel for heavy transport, or liquified and compressed for export to our key trading partners.
“Green hydrogen is a critical enabler for future manufacturing of green metals and other products the world needs as the transformation to net zero by 2050 gathers pace,” the Treasurer said.
