Oil and Gas News

Fed Budget to fuel net zero goals

Mid West Clean Energy

The 2022-23 Federal Budget is set to back the Australian industry while building new energy industries, securing reliable and affordable energy, and putting Australia on track to reach net zero emission by 2050.

Minister for Industry, Energy and Emissions Reduction Angus Taylor said $2.4 billion of new initiatives in the 2022-23 budget under the industry, energy and emissions reduction portfolio set a path for a stronger economy.

The budget also includes $1.3 billion of new investment to maintain energy security, keep downward pressure on energy prices while reducing emissions.

“Our technology not taxes approach will make sure Australia meets and beats our 2030 emissions target, and plays a leading role in bringing down global emissions by investing in the technologies that won’t just help Australia, but will help the world,” Taylor said.
“We are also investing in critical infrastructure to ensure reliable and secure energy for Australian households and businesses, and build on our strong record of reducing prices.”

These measures will further support affordable, reliable and secure energy and help Australia reach its target for net zero emissions by 2050, without imposing new taxes or financial burdens on households, businesses or industry.

As part of the investment, $300 million will support low emissions LNG and clean hydrogen production at Darwin together with associated carbon capture and storage infrastructure. Darwin is positioned to become one of the world’s leading low-cost clean energy hubs, with access to excellent onshore and offshore natural gas and greenhouse gas storage resources, including the Beetaloo and Petrel basins and the Barossa and Bayu-Undan fields.

A total of $274.1 million will support increased private sector investment in low emissions technologies including hydrogen, and the continued development of a hydrogen Guarantee of Origin scheme.

Australia’s supply chain security through new low emissions manufacturing facilities will be enhanced with $200 million allocated for the Pilbara region.

In addition, $100 million has been included to support pre-final investment decision activities and early works to make the Port of Newcastle ‘hydrogen ready’.

An additional $50.3 million will be used to accelerate the development of priority gas infrastructure projects consistent with the Future Gas Infrastructure Investment Framework and support investment in carbon capture and storage pipeline infrastructure.

Taylor said with the budget measures, the government has committed more than $22 billion of public investment in low emissions technologies by 2030.