Australia's peak body for electricity generators and retailers has welcomed the Federal Government's commitment to invest $539.2 million into hydrogen technology and carbon capture and storage.
The investments, to be announced in the 2021-22 federal budget, are designed to support Australian industry and manufacturing and further drive down Australia's emissions.
The government will invest $275.5 million to accelerate the development of four additional clean hydrogen hubs in regional Australia and implement a clean hydrogen certification scheme.
The Hunter Region is among the regions identified as a suitable location for the establishment of a hub.
The federal government will also spend a further $263.7 million to support the development of carbon capture, use and storage projects.
Australian Energy Council Chief Executive, Sarah McNamara, said the investment would assist the transition towards an economy-wide net zero.
"The AEC committed to net zero by 2050 in June 2020 and we support and encourage the development of the hydrogen industry," she said.
"To date, the majority of Australia's carbon focus has been in the electricity sector, whose emissions are declining rapidly. Yet two-thirds of Australia's emissions come from elsewhere, and these are still going up. This is where research now needs to be directed."
Ms McNamara said while it may take some time before hydrogen was commercially viable, the technology had the potential to remove emissions from heavy transport, cement, steel and heat sources.
"We need new technologies in these sectors in order to get to net zero," she said.
"While CCS has not proved to be as useful in electricity as was once hoped, it still may assist other sectors."
Australia's peak body for the oil and gas industry said the investment would provide a massive boost for the industry.
Australian Petroleum Production and Exploration Association chief executive Andrew McConville said the investment would help accelerate the development of hydrogen and carbon capture technologies.
"Our industry works both in Australia and around the world to accelerate the development of low emissions technologies," Mr McConville said.
"Just as government investment in renewables has fast tracked projects, this will do the same and create thousands of jobs in the process.
"Natural gas plays a vital role in reducing Australia's and Asia's emissions. Australian liquefied natural gas is helping to reduce emissions in importing countries by about 170 million tonnes each year and the commitment to the development of carbon capture and hydrogen solutions will make a further substantial contribution.
"Natural gas is a pathway to a large-scale hydrogen industry."
