AFR: NSW moves to kickstart green hydrogen

Angela Macdonald-SmithSenior resources writer

Aug 23, 2021 – 12.01am

https://www.copyright link/policy/energy-and-climate/nsw-moves-to-kickstart-green-hydrogen-20210822-p58kun

NSW is moving to accelerate thedevelopment of its nascent green hydrogen sector with the launch of a marketplatform that will match up potential producers and users and act as a catalystto get projects off the ground.

The initiative, to be launched by NSWEnergy Minister Matt Kean on Monday, will support the targeted development ofgreen hydrogen hubs in areas such as Port Kembla and the Hunter Valley thatwould help deliver clean fuel for industry.

The NSW government has already committedat least $70 million to develop hydrogen hubs in the Hunter and Illawarraregions as part of its Net ZeroIndustry and Innovation Program.

Mr Kean said the hydrogen hubs have thepotential to become “clean manufacturing powerhouses” but that rapid action isneeded across multiple businesses and stakeholders.

“We know that the best way to make greenhydrogen commercially viable in Australia and NSW is to get to scale as quicklyas possible,” he said, adding that the fuel would play a “massive” role todecarbonise and help drive the economy.

Like other state governments, NSW has atarget to reach net zero emissions by 2050, but it has yet to lay out specificambitions and initiatives for green hydrogen.

The Clean Energy Council warned inFebruary that a specific hydrogen plan for NSW was vital for it to attractprivate investment in the sector and avoid ceding economic growth opportunitiesto states such as South Australia, Western Australia, Queensland, Tasmania andVictoria, which have each released plans and established hydrogen deploymentfunds.

However, two new gas power stationsproposed for NSW, EnergyAustralia’sTallawarra plant to be built in the Shoalhaven region and Snowy Hydro’sKurri Kurri plant, will both be able to use hydrogen in the fuel mix. Andrew Forrest’s Australian Industry Energy also plans to use green hydrogen in a power stationproposed to be built near its LNG import terminal under development in PortKembla.

Jemena is developing an $18 milliondemonstration hydrogen project at Horsley Park, with the aim of injecting ablend of green hydrogen into the gas network. Private firm Energy Estate isleading a group of businesses, including AGL Energy and APA Group, withambitions of developing a large-scale green hydrogen production, transportationand export project in the Hunter region.