The global race for cash for green hydrogen projects | The Business | ABC News
Summary
TLDRThe Australian government's budget includes significant incentives to boost green hydrogen investment, positioning Australia as a global leader in renewable energy. With abundant solar and wind resources and strong trade links, especially with Asia, the country is well-placed to capitalize on the economic opportunity of decarbonization. The plan involves increasing renewable electricity, using green hydrogen in minerals processing and heavy industries, and extending tax credits for critical minerals processing. Despite opposition concerns, the government views these measures as a modest risk for substantial economic gains and job creation.
Takeaways
- 🌏 There is a global race to invest in green hydrogen, with significant incentives being put in place by countries worldwide.
- 🏁 Australia aims to be competitive in this race, leveraging its strong renewable resources and trading relationships with Asia.
- 💡 The ultimate goal is to decarbonize the economy, with a focus on using renewable energy to produce green hydrogen for various industries.
- 🔋 Australia currently has 40% of its electricity from renewables and is targeting 82% by 2030, indicating a clear path towards decarbonization.
- 🌿 Green hydrogen is seen as a key opportunity, not only for decarbonizing heavy industries but also for creating a competitive advantage globally.
- 💼 The government is offering tax production credits to companies processing critical minerals, indicating support for the value-added processing of these resources domestically.
- 📈 The financial risk for Australians is considered relatively low compared to the potential for a large economic return from these investments.
- 🏭 There is an opportunity to transform Australia's economy from a 'digg and ship' model to one that processes and uses minerals for end products locally and for export.
- 🤝 The government's incentives are seen as partnerships with industry, aiming to create jobs and set up new export industries.
- 🛑 The opposition's stance to block these measures is viewed as a potential obstacle, with the government expressing hope that the economic opportunity will be recognized.
- 🌱 The incentives are justified as part of a broader policy response to a global challenge and opportunity, with long-term economic benefits in mind.
Q & A
What is the global race mentioned in the script about?
-The global race mentioned in the script is about countries investing in green hydrogen and decarbonizing their economies, with significant efforts being made in Europe, North America, and the United States.
Why does the Australian government's budget commitments ensure the country is back in the race?
-The Australian government's budget commitments ensure the country is back in the race due to its rich renewable resources, strong trading relationships with Asia and other parts of the world, and measures that leverage its competitive advantage.
What is the ultimate aim of the countries involved in this race?
-The ultimate aim is to win the race by decarbonizing their economies and taking advantage of the economic opportunities presented by green investments, job creation, and innovation in clean energy technologies.
What percentage of Australia's electricity comes from renewables currently, and what is the target for 2030?
-Currently, 40% of Australia's electricity comes from renewables, and the country is aiming to increase this to 82% by 2030.
How does the speaker describe Australia's position in terms of renewable resources?
-The speaker describes Australia as a 'truly lucky country' with some of the best wind and solar resources in the world, as well as possessing critical minerals necessary for the energy transition.
What is the government's approach to incentivizing the processing of critical minerals in Australia?
-The government is extending tax production credits to companies that process critical minerals, aiming to transform Australia's economy from a 'digg and ship' model to one that processes and uses these minerals for end products in the Australian market and for export.
What is the level of financial risk Australians are being asked to accept according to the speaker?
-The speaker believes that the level of financial risk Australians are being asked to accept is relatively low for an enormously large return, given the potential economic opportunities.
What is the government's justification for taking on equity in individual projects?
-The government's justification for taking on equity in individual projects is to respond to the global challenge and opportunity with a range of policies that level the playing field and attract investment, ultimately benefiting the Australian economy.
How does the speaker respond to the criticism that the policy delivers billions in handouts to billionaires?
-The speaker refutes the criticism by stating that the policy is not about handouts but about providing incentives in partnership with industry to create jobs and set up new export industries, which will benefit the Australian economy in the long term.
What is the speaker's view on the opposition's vow to block these measures?
-The speaker expresses hope that the voice of reason will prevail and that those who want to play politics will consider the long-term implications for the Australian economy if these measures are stopped.
What role does the speaker believe the government should play in this economic transition?
-The speaker believes there is a significant role for the government in supporting the transition to a green economy through smart and sensible policy measures that attract investment and create opportunities for manufacturing, clean energy production, and other industries.
Outlines
🌏 Global Race for Green Hydrogen Investment
The script discusses a global competition among countries to invest in green hydrogen, with a focus on Australia's position in this race. The Australian government's recent budget includes significant incentives to encourage green hydrogen investment, leveraging the country's excellent renewable resources and strong trading relationships. The aim is to decarbonize the economy, particularly by increasing the use of renewable energy to produce hydrogen for minerals processing and heavy industries, thereby giving Australia a competitive edge in the global market. The government is also offering tax credits to companies involved in processing critical minerals, which is seen as a low-risk, high-return opportunity for economic growth and job creation.
💼 Economic Opportunities and Government Support
This paragraph delves into the economic opportunities presented by the global shift towards decarbonization and the potential for Australia to capitalize on it. The government's role is emphasized through the provision of incentives and support, including tax breaks and equity participation in projects. The speaker argues against the notion that these measures are 'handouts', instead framing them as partnerships with industry to create jobs and establish new export industries. The response to criticism from the opposition, who may block these measures, is hopeful, with an emphasis on the long-term benefits for the Australian economy and the importance of taking advantage of the current opportunity.
Mindmap
Keywords
💡Green Hydrogen
💡Decarbonization
💡Renewable Energy
💡Economic Opportunity
💡Critical Minerals
💡Minerals Processing
💡Tax Credits
💡Financial Risk
💡Equity Investment
💡Policy Measures
💡Political Opposition
Highlights
Global race on countries to invest in green hydrogen
Australia has competitive advantage with best renewable resources
Strong trading relationships with Asia to leverage green hydrogen
Decarbonizing economy is ultimate aim to win the race
Australia has best wind and solar resources, capable industry
Government extending tax credits for critical mineral processing
Low financial risk for large return from government intervention
Opportunity to process minerals in Australia for end products
Government taking equity in projects to justify risk
Different countries responding with various policies to opportunity
Australia well positioned with incentives for manufacturing, green steel, batteries
Incentives justified for long-term economic opportunity
Opposition may block measures, impact on economy if not implemented
Government measures are right thing to do in partnership with industry
Voice of reason needed in Parliament to support measures
Transcripts
there is a global race on countries
around the world including throughout
Europe North America and the United
States most significantly have' put in
place enormous incentives to encourage
investment in green hydrogen into their
countries and this step these
commitments from the Australian
government in this budget ensure that
we're back in the race we've got some of
the world's best renewable resources uh
we've got a lot of strong trading
relationships with Asia and other parts
of the world to take advantage of this
and these measures make sure we're back
in the race and can take advantage of of
our competitive Advantage is the
ultimate aim to win that race well it
absolutely is this is uh this is an
extraordinary opportunity the challenge
for the world is to decarbonize all
parts of their economy over the next
couple of decades it is a race there's
extraordinary Economic Opportunity in
jobs investment in economic activity to
the countries who get it right and
Australia we are truly Lucky Country
we've got some of the best wind and
solar anywhere in the world uh we've got
some extraordinarily capable industry
we've got a lot of the critical minerals
we can bring all this together there's
no doubt we can win this race does
winning mean decarbonizing the economy
first yeah I think we need to do a
number of things first is to decarbonize
our economy we've got a shift and we're
on that Journey we've currently got 40%
of our electricity coming from
Renewables we're heading towards 8 2% by
2030 that's a really important step but
then it's taking advantage of the green
hydrogen opportunity using that
renewable energy to produce hydrogen to
have that feed into our minerals
processing into our heavy Industries to
decarbonize those sectors so they can
compete globally and out compete those
other countries that aren't blessed with
the same renewable resources we are the
government is also extending tax
production credits to companies
processing critical minerals
how would you categorize the level of
Financial Risk Australians are being
asked to accept with this level of
government
intervention well I think it's a
relatively low risk for an enormously
large return we are world renowned for
our mineral resources we've got really a
digg and ship economy if you like at the
moment and the big opportunity for us is
to go further to process those minerals
here in Australia uh to ultimately use
them as end products here in the
Australian Market whether that's uh
producing batteries or green steel
there's clearly a big opportunity for us
to do that here in Australia and then to
export those products internationally
there's a big return if we get this
right and I think these steps from the
from the government are relatively
modest modest level of risk for an
enormous Economic Opportunity there is
more support than just the tax breaks in
some cases the government will be taking
on equity in individual projects what
what is the justification for that kind
of
risk well I think what we're seeing
around the world is every country
responding to this Challenge and
enormous opportunity with a wide range
of different policies and it's no
different here in Australia we can do
nothing we can sit and let the market
rip and ultimately investment will go to
those other countries or we can do what
this government is doing which has put
in place a range of I think quite smart
and sensible policy measures that level
the playing field that will ultimately
mean that investment and whether it's in
manufacturing some of the critical clean
energy components whether it's producing
green steel whether it's manufacturing
batteries all of these things are
massive opportunities for Australia uh
it's hours to lose uh and I think these
incentives that the government's putting
in place are clearly Justified given the
Economic Opportunity not just for now
not next year not 10 years but for many
decades to come what's your response to
the shadow treasurer's view that this is
a policy that will deliver billions in
handouts to
billionaires well F firstly this this
isn't handouts this is a package of
incentives in partnership with industry
we've got some very mature sophisticated
businesses that are prepared to invest
in these projects by that investment
they will create many tens of thousands
of jobs in Rural and Regional Australia
and they'll set us up to have export
indust Industries which will replace our
old fossil fuel parts of the economy
create jobs create investment and a
strong economy for many decades to come
and you know the reality is these are
these are sophisticated companies these
are complex projects and in partnership
with government there's no doubt this is
the right thing to be doing the
opposition has vowed to block these
measures do you see that as a potential
obstacle to these supports being
implemented or are you confident that
the Senate crossbenchers will back it
look we're we're certainly hopeful that
the voice of reason Prevail I think what
we need to ask ourselves and those
people who uh want to play politics and
get in the way of this is if they stop
these measures what does that mean for
the Australian economy in 5 years in 10
years and in 20 years time because this
is The Economic Opportunity of the globe
this is the opportunity that Australia
is very very well positioned to take
advantage of there is a role for
government
uh and I think these are the right
measures to to get behind him back and I
hope the voice of reason Prevail in the
Australian Parliament K Thornton thanks
for your time thank you
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