As part of a $300 million energy industry financing commitment, a re-elected Coalition government will provide up to $130 million to gas companies in the Northern Territory to invest in carbon capture and storage.
Prime Minister Scott Morrison visited the Northern Territory to promote the promise, which was initially announced in the federal budget.
Up to $70 million of the $300 million Northern Territory energy budget would go toward a new hydrogen industrial cluster outside of Darwin, which would facilitate hydrogen production for export and domestic usage.
Gas giants Inpex, Santos, and Darwin LNG would get more than a third of the projected funds, up to $130 million, to build a new carbon capture and storage center and explore additional carbon storage possibilities.
The cash, according to Mr. Morrison, is part of a $2.6 billion pledge to improve the territory’s export capacity.
Mr. Morrison stated, “We aim to turbocharge the territory’s status as a world leader in energy, freeing investment and creating more employment.”
Angus Taylor, the Minister for Industry, Energy, and Emissions Reduction, said the money will provide local gas companies with a better worldwide competitive advantage.
“Global demand for LNG is expected to rise in reaction to Russia’s invasion of Ukraine,” Mr. Taylor said, adding that “the area will profit from another job boom when production decarbonizes and new fields like the Beetaloo are opened up.”
The financing includes $96 million for future sustainable energy projects in the Northern Territory, which is conditional on demonstrating value for money.
