Australia stands on the cusp of a green transformation, propelled by hydrogen’s potential to lead the charge towards net-zero carbon emissions. The Grattan Institute’s report, “Hydrogen: Hype, Hope, or Hard Work?” delineates strategic imperatives, urging targeted government support.
Greening Industries: Hydrogen in Ammonia, Alumina, and Iron Production
Highlighting hydrogen’s pivotal role, the report underscores its significance in fostering green production methods for ammonia, alumina, and iron. A proposed government investment of $0.6-2 billion annually aims to bridge the ‘green premium’ gap, making zero-emissions production economically competitive.
Government-Driven Success: A Threefold Strategy
1. Energizing the Future: The report calls for a revolution in renewable energy, urging the government to enhance generation, storage, and transmission capabilities to reduce electricity costs and bolster the economic viability of hydrogen production.
2. Carbon Pricing Reinforcement: To incentivize emission reduction, the report advocates for an increase in carbon prices, particularly in heavy industries. Recalibrating the Safeguard Mechanism is proposed to ensure a robust carbon price, narrowing the cost gap between conventional and green production.
3. Strategic Industry Policy: The government is advised to underwrite demand for ‘green’ ammonia, alumina, and iron, aligning with broader support for green products. This includes critical minerals and forms a part of a comprehensive Australian green industry policy.
Australia’s journey towards green prosperity demands a nuanced approach to hydrogen investment. The report advocates for cautious optimism, urging the government to tread carefully in supporting hydrogen applications while steering clear of ventures with uncertain viability. Lead author Tony Wood emphasizes the need to temper hydrogen hype, positioning these reforms as crucial for achieving net-zero by 2050 and propelling Australia into a hydrogen-driven era of export growth and national prosperity.
Source: miragenews.com
