Alternatively, renewable energy can be used to split hydrogen atoms from water molecules to make emissions-free ‘green’ hydrogen.
The ‘green’ and ‘blue’ methods have not occurred at an industrial scale in Australia.
About $70 million will be poured into BP’s $252.5 million H2Kwinana clean industrial hub in Perth’s coastal industrial suburb of Kwinana while another $70 million will go to the WA government’s $140 million Pilbara hydrogen hub.
Morrison also announced $67 million would be spent in WA – from its $250 million budget commitments on carbon capture storage technology – including $40 million for Woodside Energy’s Burrup carbon capture and storage hub.
Morrison attempted to wedge the opposition when he spoke to the WA Chamber of Commerce on Tuesday, warning Labor could introduce a carbon tax that would hurt the resources sector.
“If the Coalition is returned at the forthcoming election, I can assure you there will be no mining tax,” he said.
“And there will be no adverse changes to fuel tax credit arrangements.”
Labor has ruled out imposing a carbon tax if it forms government.
In its $40 billion ‘rewiring the nation’ policy Labor intends to grow sectors such as hydrogen and battery production.
Greenpeace Australia Pacific clean transitions head Jess Panegyres blasted the government’s $40 million carbon capture and storage funding.
“Carbon capture has never worked anywhere in the world at scale, with the most salient example of its failure being found right here in Western Australia,” she said.
“Chevron’s colossal Gorgon gas plant, Australia’s only commercial-scale carbon capture and storage project, has comprehensively failed – and now the Morrison Government wants to hand over more public money to waste on this dangerous fantasy technology.”
With Mike Foley