Australia outlines details of hydrogen subsidy scheme

Market: Hydrogen
07/07/23

Australia's federal government has outlined more details of the A$2bn ($1.33bn) Hydrogen Headstart programme first announced in May, revealing it will target 1000MW of electrolyser capacity by 2030 by paying a production subsidy to a select number of large-scale projects.

The minister for climate change and energy Chris Bowen released the scheme's consultation paper on 7 July with submissions to close on 3 August, identifying the government's preference for the money to go to at least two large-scale projects of at least 50MW electrolyser capacity. The largest Australian project to have reached a final investment decision (FID) so far is for 10MW.

Hydrogen Headstart will choose Australia-based projects producing hydrogen or derivative products made from hydrogen, such as ammonia, which must be produced using renewable energy and without carbon capture and storage. The scheme was first announced on 9 May with an aim to help the industry bridge the commercial gap between the cost of production and competitive pricing.

Successful applicants will gain a production credit on a per kilogramme basis, paid over 10 years to cover the price gap between production costs and sales price, with the final guidelines on applications to be released in late 2023 or early 2024. If the sales price "materially exceeds" required support within the decade, recipients must pay back an amount of the subsidy received in previous years.

"Hydrogen Headstart is an important priority that will keep Australia competitive and we must get the design right. This will help shape future policies and incentives," said the chief executive of peak representative body the Australian Hydrogen Council Fiona Simon.

Consultations for the review of the National Hydrogen Strategy, initially developed by the previous government in 2019, also opened on 7 July and close on 18 August. The review will examine actions implemented in the original strategy, as well as new opportunities not previously adopted.

Australia's plentiful solar and wind power sources have so far failed to materialise into commercial development of green hydrogen. Many in the industry have called for subsidies and incentives, concerned the country could fall behind other countries in the hydrogen export race.

Australia has around 40pc of all announced global hydrogen projects, with the Australian pipeline valued between A$230bn-300bn. But the government said by the end of 2022, only a single Australian project with a capacity of at least 10MW had reached a FID, while the EU boasts 1,400MW and the US 300MW of FID-approved capacity.

By Tom Major

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15/11/24

Cop: Parties back battery storage, grids and H2 pledges

Baku, 15 November (Argus) — Parties including the US, the UK, Germany, Brazil, the UAE and Saudi Arabia on Friday endorsed pledges on energy storage and grids, and low-carbon hydrogen put forward earlier this year by the UN Cop 29 summit presidency. The pledges aim to increase battery storage capacity six-fold by 2030, from 2022 levels, and enhance energy grids, as well as unlock the potential for a global market for low-carbon hydrogen and its derivatives. It is unclear how many countries have endorsed the pledges so far. Some government representatives, international energy agencies and private sector firms showed their support today to the Cop pledge aiming to enhance grid capacity through a global deployment goal of adding or refurbishing 25mn km of grids by 2030. The commitment also recognises the need "to add or refurbish an additional 65mn km by 2040 to align with net-zero emissions by 2050". "Achieving the grid's target would require the build-up rate to increase by double," energy think-tank Ember said today, adding that the 1,500GW storage goal can be exceeded "significantly". The battery storage goal is in line with what the IEA said is needed to meet the goal of tripling renewable energy capacity by 2030, while maintaining energy security. The commitment was taken last year during Cop 28 in Dubai. The IEA expects that most projects will be located in China and developed economies. Delegates called for national targets for energy storage and power grids as well as for more energy connectivity and trade to be able to decarbonise countries faster and to support regional energy cooperation. "Cross-border energy in Asia Pacific remains mainly in bilateral contracts," said a representative from the region. Parties highlighted the urgency to accelerate energy investment, with the International Renewable Energy Agency (Irena) calling for a new finance goal for developing countries — currently under negotiations — that reflects the need of financing these nations need to accelerate their clean energy expansion. Clean energy investments in emerging and developing countries outside China have risen to $320bn in 2024, according to the IEA. But a representative from Egypt pointing out that over $1 trillion per year is needed for these countries' transition. Saudi Arabia supported both of the pledges, while reiterating that natural gas storage and carbon and capture storage was needed to be able to guarantee stable energy with less emissions. US energy secretary Jennifer Granholm said that the battery storage and grid pledges at the summit will set the tone at next week's G20 where she hopes countries set a similar target. By Jacqueline Echevarria Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Cop: Argentina pulls delegation from Baku

13/11/24

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13/11/24

Cop: Argentina pulls delegation from Baku

Montevideo, 13 November (Argus) — Argentina's government today withdrew its delegation from the UN Cop 29 climate summit in Baku, Azerbaijan. The country's foreign affairs ministry confirmed to Argus that the delegation had been told to leave the event, which began on 11 November and will run through 22 November. No reason was given for the decision, but it fits the general policies of President Javier Milei, who has expressed skepticism about climate change. Milei eliminated the country's environment ministry shortly after taking office in December 2023. He is also pursuing investment to monetize oil and gas reserves, with a focus on the Vaca Muerta unconventional formation. Vaca Muerta has an estimated 308 trillion cf of natural gas and 16bn bl of oil, according to the US Energy Information Administration. In October, the government created the Argentina LNG division with a plan to involve private companies and the state-owned YPF to produce and export up to 30mn metric tonnes (t)/yr of LNG by 2030. It wants to export 1mn bl of crude. The plans are closely linked to a new investment framework, known as RIGI, that will provide incentives for large-scale investments. The administration is also pushing hard for investment in critical minerals, including copper and lithium. Argentina has the world's second-largest lithium resources, estimated at 22mn t by the US Geological Survey. It has copper potential that the RIGI would help tap. The government has not specified if pulling out of Cop 29 means Argentina will withdraw from the Paris Agreement, which Argentina ratified in 2016. The country's nationally determined contribution calls for net emissions not to exceed 359mn t of CO2 by 2030. This represents a 21pc reduction of emissions from the maximum reached in 2007. By Lucien Chauvin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Cop: UK sets ambitious 2035 climate target

12/11/24

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12/11/24

Cop: UK sets ambitious 2035 climate target

London, 12 November (Argus) — The UK government has set a target to cut all greenhouse gas (GHG) emissions by at least 81pc by 2035, from a 1990 baseline, the country's prime minister Keir Starmer said today at the UN Cop 29 climate summit in Baku, Azerbaijan. The target, which will form the basis of the UK's next national climate plan, is in line with recent recommendations from the independent advisory Climate Change Committee . Energy minister Ed Miliband sought the committee's guidance shortly after the Labour government was elected in July. Starmer urged all countries to come forward with new national climate plans — known as nationally determined contributions (NDCs) — at Cop 29. Details of the UK's new NDC are not yet clear, but Starmer said his government is "fully committed" to its pledge of zero-emissions power by 2030. He also repeated his promise for a "government that trod lightly on people's lives". "The UK is stepping up as a climate frontrunner at a time when such leadership is critically needed, co-founder of think-tank E3G Nick Mabey said. "We hope to see detailed implementation plans — ideally with sectoral commitments and a supporting investment roadmap — to lend credibility to its submission." The energy transition "is a huge opportunity", Starmer said, pointing to global appetite for renewables investment. And he noted the "advantage of being a first mover". The country's Labour government, elected in July, has diverged substantially from the previous administration on climate issues. The UK government today announced a "clean industry bonus" — a provisional £27mn ($34.6mn) per GW of offshore wind, to incentivise offshore wind developers to invest in industrial areas, many of which are rooted in the oil and gas industry. This will boost "green jobs" and support sustainable industry, the government said. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Slow H2 progress risks shipping, steel net-zero goals

11/11/24

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11/11/24

Slow H2 progress risks shipping, steel net-zero goals

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Cop: US climate envoy says clean energy trends to stay

11/11/24

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11/11/24

Cop: US climate envoy says clean energy trends to stay

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