In addition to opening applications for $1.5 billion in concessions for large-scale green hydrogen generators, the New South Wales (NSW) government has allocated $64 million to help finance green hydrogen hub projects in the Illawarra on the state’s south coast and close to Moree in the state’s west.
The “globally competitive” funding and concessions, which are a component of the NSW Hydrogen Strategy first announced in 2021, according to NSW Treasurer and Energy Minister Matt Kean, will help green hydrogen costs decrease by about 40% to the state government’s target of less than $2.80 per kilogram by 2030.
“Green hydrogen producers across NSW are now able to access $1.5 billion in discounts to lower costs for large-scale investment, including up to a 90% decrease in their electricity network tariffs,” he said.
“This strategy will increase our economy by up to $600 million annually and result in $80 billion being invested in NSW by the year 2050. It totally alters the playing field.
The money will go toward the initial construction of a 10 MW electrolyzer in the Illawarra, which will be able to produce 1,400 tonnes of green hydrogen annually, and a 12 MW electrolyzer close to Moree.
The Moree plant will be used in a project to turn green hydrogen and air-captured hydrogen into green ammonia for use as fertilizer on properties in the area. The Moree plant will be built on Sundown Pastoral Company’s 65,000-hectare Keytah cotton field. By 2030, the project is anticipated to have increased to a capacity of 112 MW and to have reduced an estimated 283,929 tonnes of emissions.
The Illawarra Hydrogen Technology Hub at Port Kembla, which is being created as part of the gas and engineering firm BOC’s 10 MW Illawarra project, will be able to produce four tonnes of green hydrogen every day to aid in the decarbonization of the transportation and industrial sectors. Four hydrogen refueling stations with a daily capacity of up to 40 heavy vehicles will initially be part of the project.
To promote the decarbonization of regional steel, glass, and cement production and reduce 716,514 tonnes of emissions by 2030, BOC plans to increase electrolyzer capacity to 650 MW.
According to Kean, the incentives will play a crucial role in assisting NSW to grow up the developing green hydrogen industry, safeguarding the state’s energy needs into the future and ensuring that the Australian industry can still compete on a worldwide basis.
Because the NSW rebates can apply to projects ending well beyond 2030, while the US program ends in 2032, he claimed that these incentives will position us for success in our competition with the well-known US Inflation Reduction Act hydrogen incentives.
“Green hydrogen can aid in accelerating deep decarbonization in challenging market segments within the transportation, industrial, and energy sectors, which are responsible for about 18% of NSW’s yearly emissions.”
“It is imperative to secure these hard-to-abate sectors’ NSW business operations and people, as well as to position them for success in a global low-carbon economy.”