Melbourne, Australia: The Australian Hydrogen Council has welcomed the Australian Government’s announcement of a more than $10 billion Australian Fuel Security and Resilience package, describing it as an important step toward strengthening Australia’s fuel, fertiliser and industrial supply-chain resilience.
The package includes a proposed $7.5 billion Fuel and Fertiliser Security Facility to support supply and storage through loans, equity, guarantees, insurance and price support, alongside a government-owned fuel reserve and feasibility funding for new or expanded refining capability.
Australian Hydrogen Council CEO Fiona Simon said the package recognised that Australia’s resilience challenge extends beyond conventional fuel reserves.
“The explicit inclusion of fertiliser security is particularly important,” Dr Simon said.
“We have seen how exposed Australia can become when essential industrial inputs are imported through fragile global supply chains.
“Nitrogen-based fertilisers rely on ammonia, and ammonia relies on hydrogen. Australia has the resources and capability to produce these inputs domestically, but the market settings have not supported that outcome.
“This package creates an opportunity to look not only at emergency reserves, but at the domestic production capability needed to reduce Australia’s exposure over time.”
Dr Simon said the package could mark an important evolution from policy focused primarily on hydrogen production toward a more integrated approach to the products and supply chains hydrogen can enable.
“Over recent years, hydrogen policy has focused heavily on the production challenge: how to reduce the cost of low-emissions hydrogen and support early projects,” Dr Simon said.
“The next phase is about connecting that production capability with the products Australia needs, including fertilisers, low-carbon liquid fuels, methanol, ammonia, refining inputs and industrial feedstocks, with potential roles in sustainable aviation fuel and future e-fuel pathways.
“If designed well, the proposed Fuel and Fertiliser Security Facility can help close the loop between production, demand, storage, logistics and domestic supply-chain resilience.
“As further details are released, we will be looking closely at how the package can support demand-side measures, offtake structures and end-use market development across agriculture, aviation, shipping, mining, transport and industry.
“This package creates an important opportunity to bring the pieces together.”
The Australian Hydrogen Council said it looked forward to working with the Government, industry and end users on the implementation of the package.
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You can download the full media release here.
About Australian Hydrogen Council The Australian Hydrogen Council is the peak representative body for the Australian hydrogen industry, with members from across the hydrogen value chain. We represent the emerging hydrogen industry and connect it with its stakeholders to collectively create a clean and resilient energy future that has hydrogen as a key part of the energy mix. Read more at www.h2council.com.au.