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Morrison Govt. puts $100M towards three hydrogen projects
Minister for Energy and Emissions Reduction, Angus Taylor. Source: Renew Economy
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  • In another boost for clean energy, the Federal Government has pledged more than $100 million to support three large-scale hydrogen plants
  • The funds will be used to build three 10-megawatt electrolysers, which are expected to be among the largest in the world
  • The fast-tracked construction of the projects is also anticipated to generate more than 210 jobs
  • To date, the government has pledged more than $850 million in support for hydrogen projects since 2015
  • A further $539.2 million is expected to be invested according to the 2021-22 Budget

In another boost for clean energy, the Federal Government has pledged more than $100 million to support three large-scale hydrogen plants in Western Australia and Victoria.

Up to $70 million had originally been offered through the Australian Renewable Energy Agency's (ARENA) Renewable Hydrogen Deployment Funding Round, but that figure has since been bumped to $103.3 million.

The funds will be used to build three 10-megawatt electrolysers — one at each of Engie Renewables Australia's existing ammonia facility in Karratha and ATCO Australia's Clean Energy Innovation Park in Warradarge, Western Australia, and one at Australian Gas Networks' Murray Valley Hydrogen Park in Wodonga, Victoria.

Once complete, Engie's project will see renewable hydrogen used to produce ammonia for export in the Pilbara, while ATCO and Australian Gas Networks' projects will use renewable energy to produce hydrogen for gas blending into the existing natural gas pipelines.

The electrolysers are expected to be among the largest ever built and will generate more than 210 jobs during construction.

Minister for Energy and Emissions Reduction Angus Taylor said the funding will fast-track the construction of projects that will provide new economic and employment opportunities in regional Australia.

"These projects show how our existing ammonia industry and gas pipeline network will be crucial to the future clean hydrogen sector. This will be key to bringing down the cost of renewable hydrogen production and distribution," he said.

"Not only will these projects allow for new export opportunities, but they will build-up domestic demand so we are able to reduce emissions both here at home and overseas."

Hydrogen technology has been a top priority under the government's Technology Investment Roadmap. Central to the plan is driving the cost of hydrogen down to $2 per kilogram — the price at which it becomes competitive with alternative forms of energy in large-scale deployment across Australia.

To date, the Government has pledged more than $850 million in support for hydrogen projects since 2015. 

A further $539.2 million is expected to be invested according to the 2021-22 budget, which will go towards the development of four additional hydrogen hubs and support for carbon capture, use and storage projects.

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