Latest / 360 with Katie Woolf / Minister for Energy and Emissions Reduction Angus Taylor speaks to Katie Woolf on 360

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Minister for Energy and Emissions Reduction Angus Taylor speaks to Katie Woolf on 360 · 360 with Katie Woolf

• 0:00
  Speaker 1: Got a very busy morning lined up for you, and
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  Speaker 1: we now know that the Federal government, well they're set
• 0:04
  Speaker 1: to spend nearly half a billion dollars in new grants
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  Speaker 1: to accelerate Australia's clean hydrogen industry, with funding to be
• 0:12
  Speaker 1: prioritized for regional areas. Now, the funding will go towards
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  Speaker 1: creating up to seven clean hydrogen industrial hubs, with the
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  Speaker 1: Government identifying these seven locations based on their interest, existing
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  Speaker 1: capabilities and infrastructure and resources. Now joining me on the
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  Speaker 1: line right now to talk further about this is the
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  Speaker 1: Energy and Emissions Reduction Minister Angus Taylor.
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  Speaker 2: Good morning to you, Good morning Katie, thanks for having.
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  Speaker 1: Me, Thanks for joining us this morning. Now, Minister, we
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  Speaker 1: know that the Federal government's already committed I believe one
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  Speaker 1: point two billion dollars to a hydrogen investment. What's the
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  Speaker 1: purpose of the additional one hundred and fifty million.
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  Speaker 2: It's all about getting that critical infrastructure in place to
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  Speaker 2: support these hubs. We see Australia is uniquely positioned across
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  Speaker 2: the world in terms of our capacity to produce clean hydrogen,
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  Speaker 2: whether it's from renewables or from gas, or indeed even
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  Speaker 2: from coal. And do it in a way which is
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  Speaker 2: very very low or zero emissions. We have many sites,
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  Speaker 2: Darwin is one of them. Darwin is a very very
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  Speaker 2: good potential site, but we need to make sure we
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  Speaker 2: get that infrastructure in place to support the development of
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  Speaker 2: the industry. This is no different from the early development
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  Speaker 2: of the L and G sector or the iron ore
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  Speaker 2: sector in Australia. We've done it before. We know a
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  Speaker 2: lot about how to do it, but we do know
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  Speaker 2: we've got to get that critical infrastructure in place to
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  Speaker 2: attract that private sector investment, build up those markets and
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  Speaker 2: build up, of course the processing facilities that are going
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  Speaker 2: to be critical to building this industry.
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  Speaker 1: So why is Darwin being considered is because is it
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  Speaker 1: because we do have rich gas resources?
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  Speaker 2: Yeah. So Darwin has a couple of a number of
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  Speaker 2: things that are very useful. One is you've got a
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  Speaker 2: capable workforce that has particularly been built up with the
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  Speaker 2: development of the L and G sector. Secondly, you've got
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  Speaker 2: good potential for renewables being there in the north, good radiation.
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  Speaker 2: You've got a gas resource which is extremely useful. There's
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  Speaker 2: some COTWO sequestration options at Darwen. You've got the Beaterloo
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  Speaker 2: basein being developed. So all of those things in combination
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  Speaker 2: put Darwen in a very strong position. Now most countries
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  Speaker 2: in the world would die for having a location like that.
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  Speaker 2: We've got seven we've identified in Australia, so having significant
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  Speaker 2: commitment to getting these up and running is a real opportunity.
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  Speaker 2: The only thing you have in Darwin is the relationship
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  Speaker 2: already with big export customers in Japan and this is
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  Speaker 2: where one of the early markets will be. We know
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  Speaker 2: that that we've been in post dialogue with the Japanese
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  Speaker 2: on the potential to build that export market and Darwen
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  Speaker 2: is well positioned on that front as well.
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  Speaker 1: And so how are you going to determine which hubs
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  Speaker 1: or which locations realistically end up with these hubs? That's
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  Speaker 1: how bigger chance is going in with here.
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  Speaker 2: Well, it's been nominated as one of seven priority areas,
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  Speaker 2: so you know we've only nominated seven, it's one of
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  Speaker 2: them and that puts it right on the list. What
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  Speaker 2: we do need, though, is we need the private sector
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  Speaker 2: investment coming forward. That's critical. You can't build an industry
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  Speaker 2: like this purely with public money. Public money is critical
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  Speaker 2: to get that infrastructure, supporting and enabling infrastructure in place,
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  Speaker 2: you know, the facilities you need to be able to
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  Speaker 2: produce and export and supply domestically. But the private sector
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  Speaker 2: money is crucial. So we do need to see that
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  Speaker 2: coming forward. But look, we're going to be working very
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  Speaker 2: closely to give Darwen the very best chance of being
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  Speaker 2: one of these hubs. I certainly think it has the
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  Speaker 2: makings of it, and as I say, we wouldn't have
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  Speaker 2: put it on the priority list if we didn't believe that.
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  Speaker 1: But so the reality of it is, by the sounds
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  Speaker 1: of it, that private investment is going to be crucial
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  Speaker 1: when it comes down to determining which locations is help
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  Speaker 1: actually do end up set up in.
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  Speaker 2: Yeah, that's right. Now, you've already attracted an enormous amount
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  Speaker 2: of private sector investment in recent years, and so again
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  Speaker 2: do one has a record in doing that. But this
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  Speaker 2: is an industry that is ultimately going to be a
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  Speaker 2: public private partnership. We need that private sector money coming forward.
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  Speaker 2: It can't purely be done on the government perse, so
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  Speaker 2: that will be really critical. I do know there's a
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  Speaker 2: number of players who are working on this now in
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  Speaker 2: the private sector to make the sort of investments that
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  Speaker 2: are going to be necessary. So we'll continue to encourage that.
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  Speaker 1: Now, obviously the aim is not only to have cleaner energy,
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  Speaker 1: but it is also about creating jobs. How many jobs
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  Speaker 1: could we see created here in the Northern Territory if
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  Speaker 1: indeed this does get off the ground for us.
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  Speaker 2: Well, look when we did the National Hydrogen and Strategy
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  Speaker 2: a couple of years ago, which got this the ball
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  Speaker 2: rolling on all of this, we saw the potential to
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  Speaker 2: create around eight thousand jobs across Australia. So you know,
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  Speaker 2: if there's seven hubs, you can do the mass on
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  Speaker 2: what a typical hub might be. But you know, you're
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  Speaker 2: talking certainly a thousand jobs in a particular hub over time,
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  Speaker 2: at about eleven billion dollars a year in GDP over
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  Speaker 2: the next thirty years. But the truth is that it's
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  Speaker 2: growing faster than we expect it. If anything, there's upside
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  Speaker 2: on that. So we do think it's significant. Critical to
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  Speaker 2: that is not just the production of hydrogen, but the
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  Speaker 2: customer sectors that use the hydrogen. So, I mean, what's
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  Speaker 2: extraordinary about hydrogen is it can be used into so
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  Speaker 2: many different applications. It can be used to produce fertilizer
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  Speaker 2: or ammonium nitrite, It can be used to as a
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  Speaker 2: source of energy. Going into electricity generators obviously has great
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  Speaker 2: potential in the transport sector. So many of the jobs
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  Speaker 2: will come on the customer side, not just on the
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  Speaker 2: supplier side, and we certainly want to see that happening
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  Speaker 2: in these hubs.
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  Speaker 1: Minister, My understanding is that Wy and also Tazzy, You've
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  Speaker 1: got the likes of Twiggy Forest backing them. How do
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  Speaker 1: we compete with that?
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  Speaker 2: Well, you've had no shortage of private sector investment in
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  Speaker 2: Darwin in recent years. In fact, just as I was
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  Speaker 2: listening and before I came on, you were talking about
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  Speaker 2: exactly that. And you know this is Darwin has done
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  Speaker 2: this well and knows a lot about how to do
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  Speaker 2: it attract that private sector investment. So I think, look
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  Speaker 2: that the relationship that is really going to count in
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  Speaker 2: the early days to build a very fast export market
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  Speaker 2: will be the Japanese. There's no question about that. That
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  Speaker 2: is where there's a large market They desperately need clean hydrogen.
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  Speaker 2: We need it too domestically, but it's a smaller market
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  Speaker 2: in Australia that is in Japan. And having that pre
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  Speaker 2: existing relationship and that investment that's come from the Japanese.
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  Speaker 2: I think is a very very strong starting point.
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  Speaker 1: I know that some people listening will be thinking to themselves,
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  Speaker 1: is it really going to be clean energy if indeed
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  Speaker 1: we do still use gas. I know that you've obviously
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  Speaker 1: pointed to solar and others as well, but I'll still
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  Speaker 1: put that to you. Is it really going to be
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  Speaker 1: clean energy if we are using gas from the beat low?
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  Speaker 2: Yes? And here's why. Gas can be made into hydrogen
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  Speaker 2: with a very clean stream of CO two, So it
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  Speaker 2: just without going through the detailed chemistry, you get hydrogen
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  Speaker 2: and you get CO two and it's a very clean
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  Speaker 2: so it's not like burning coal and a calfi power station,
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  Speaker 2: and that means it can be sequestered at very low cost.
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  Speaker 2: You've got good sequestration options and they're only likely to
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  Speaker 2: improve with a betleloose. So we do see great potential
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  Speaker 2: to produce lower emissions, affordable hydrogen quickly. And that's the
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  Speaker 2: opportunity in this marketplace, and gas, there's no question it's
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  Speaker 2: part of it. Renewables are also part of it. If
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  Speaker 2: you can do both, then that's the best of pos
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  Speaker 2: all possible worlds, and that's certainly what you have the
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  Speaker 2: potential to do in Darwen.
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  Speaker 1: Minister, when are we going to know the outcome of
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  Speaker 1: where these hubs are going to be set up? And
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  Speaker 1: if Darwin is one of the locations, it'll be.
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  Speaker 2: In the first part of next year. As I say,
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  Speaker 2: we've sent a very strong signal in nominating the priority
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  Speaker 2: locations already, but we will make a decision on this
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  Speaker 2: in the first part of next year.
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  Speaker 1: Well, Minister, we really appreciate your time this morning. Thanks
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  Speaker 1: so much for coming on and giving us a bit
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  Speaker 1: further detail.
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  Speaker 2: Good on you. Thank you.