The Australian Government’s economic plan is boosting the Northern Territory’s potential as an energy powerhouse by growing export opportunities and creating thousands of jobs to help build a strong economy for the Territory’s future.
A $300 million package has been provided for a new hydrogen hub in Darwin and multiple carbon capture storage (CCS) sites within the Middle Arm priority region.
Prime Minister Scott Morrison said the projects would deliver an estimated $1.9 billion of total investment into the Territory, creating more than 3,800 jobs.
“Our economic plan for the Territory will deliver a jobs boom, creating a stronger economy for a stronger future,” the Prime Minister said.
“We want to harness the Territory’s position as a world leader in energy and turbocharge it, unlocking investment and generating more jobs.”
The $300 million Northern Territory package includes:
- Up to $70 million to develop a clean hydrogen industrial hub at Darwin in partnership with the NT Government.
- $1 million to support Inpex Operations Australia Pty Ltd’s early-stage Darwin Clean Hydrogen Hub – Market Development Study at Middle Arm, with a total project value of $3.1 million.
- Up to $100 million to support Darwin LNG Pty Ltd and Santos Limited to construct an Integrated Northern Australia Carbon Capture and Storage Hub to reduce emissions
- Up to $30 million for Inpex Browse E&P Pty Ltd to assess the Petrel sub-basin’s suitability for permanent, safe and low-cost CO2 storage.
- Up to $3.43 million for CSIRO to develop an NT low emissions CO2 utilisation industrial hub business case and associated technical studies.
- $96 million will be made available for future clean energy projects in the Northern Territory.
Minister for Industry, Energy and Emissions Reduction Angus Taylor said these investments will turbocharge the development of Australia’s hydrogen industry and give local natural gas producers an even bigger comparative advantage.
“Global demand for LNG is poised to grow in response to the Russian invasion of Ukraine, and the Territory will benefit from another jobs boom as production decarbonises and new fields like the Beetaloo are opened up,” Minister Taylor said.
“Low cost, nearby greenhouse gas storage opportunities offer Australian LNG a potential comparative advantage as our customer countries seek to cut their emissions. With world-class natural gas resources in the Beetaloo and offshore basins, ample renewables capacity and a skilled workforce, there are extensive jobs and economic opportunities for Territorians.”
The committed projects can potentially reduce emissions by 10 million tonnes a year from 2025, and up to 30 million tonnes per annum by the end of the decade, with funding conditional on demonstration of value for money and public benefit for the investment.
In April, the Australian Government announced a landmark $872 million Energy and Emissions Reduction Agreement with the Northern Territory Government.
This announcement builds on the Commonwealth’s commitments under the deal, including growing the Territory’s clean hydrogen industry, reducing emissions in the gas sector and supporting the development of the Beetaloo Basin.
Source: Liberal Party of Australia