CQ Today – Hyped hydro plans run dry

Two years ago, Anthony Albanese came to North Queensland and claimed that “Renewable hydrogen can be used as a transport fuel, for energy, and in manufacturing. Producing it here will help Australia become a renewable energy superpower, exporting power to the world.” Ever since, there has been a conga line of major companies deserting their much-hyped hydrogen plans. Just a fortnight after the PM’s statement, New York based Plug Power announced that it would pull out of the joint venture with Twiggy Forrest to build an electrolyser plant in Gladstone. It said that “we decided we didn’t want to build a factory with them because we saw the economics; we could do better.” Last year, Twiggy Forrest himself announced that he was scrapping his company’s target to
produce 15 million tonnes of hydrogen by the end of the decade. At the same time, he announced he was sacking 700 people. A few months later, the Japanese company Kansai announced that they were pulling out of the consortium with Stanwell to build a green hydrogen hub in Gladstone. That loss of investor support has forced the Queensland Government to deny Stanwell’s request for a $1.2 billion investment from taxpayers this week. What is becoming clear is that Labor’s hydrogen infatuation is not because they believed it was commercially advantageous for Australia but because it was politically advantageous for them. After the 2016 election, the Labor party was left with a problem in Central Queensland. Their opposition to the Adani mine caused many coal miners and coal mining communities, that had hitherto strongly supported Labor, to desert them. The Labor party could not recant a show of support for coal developments because they now rely too much on preferences from the Greens in the city. Instead, Labor came up with a political strategy to claim that it was ok if coal mines closed because there would be thousands of hydrogen jobs created in their place. Labor has so far put aside $14 billion towards hydrogen funds to bolster their political campaign. But almost none of the jobs Labor promised have eventuated, nor will they eventuate anytime soon. The only thing industrial about Labor’s hydrogen plan is the industrial sized waste of taxpayer money on an unproven technology. It has been clear for a long time that hydrogen would take decades to develop if it ever will. As Resources Minister I developed Australia’s first National Hydrogen Strategy. We took a measured approach that concentrated on investing in basic research and development to try to bring down the costs of hydrogen production. Our approach was much cheaper (we invested $146 million not $14 billion) and moresensible about how long things would take to develop. We did not envisage hydrogen exports until well after 2030 and that was contingent on the research projects bearing fruit. Now that expensive hydrogen hubs are proven failures we should return to that more measured approach with regards to hydrogen. That should also allow us to recognise that we must continue to develop and support our coal industry. Coal use has continued to grow since the release of various hydrogen reports. There remains enormous and growing demand for the high-quality coal that Central Queensland has. I will not hold my breath for the Prime Minister’s failed hydrogen promises but all Central Queenslanders will have the opportunity to express their view at the Federal election in the next few months.