In 2019, the National Hydrogen Strategy was launched by the Council of Australian Governments Energy Council (the Strategy).
The Strategy was aimed at nationally coordinating and encouraging the development of Australia’s hydrogen industry and the progression of domestic renewable energy sources to meet future emission standards.
In recent years, the Strategy has been adopted at a state-based level with each of the States and Territories launching their own strategy or action plan for hydrogen development.
The goals and objectives of these hydrogen strategies are now being reflected in legislative changes, as key projects are commencing throughout Australia.
It is important that parties who are considering involvement in hydrogen projects ensure that they understand the statutory landscape from the outset.
STRATEGIES INTRODUCED BY STATES AND TERRITORIES
After the launch of the Strategy, the following policies and plans were introduced across Australia:
- South Australia: Hydrogen Action Plan (2019).
- New South Wales: Hydrogen Strategy (2021).
- Victoria: Renewable Hydrogen Industry Development Plan (2021).
- Queensland: Hydrogen Industry Strategy 2019-2024 (2019).
- Western Australia: Renewable Hydrogen Strategy (2019) and Renewable Hydrogen Roadmap (2020).
- Tasmania: Renewable Hydrogen Action Plan (2020).
- Australian Capital Territory: Climate Change Strategy 2019-2025 (2019) and ACT Sustainable Energy Policy 2020–25 (2020).
- Northern Territory: Renewable Hydrogen Strategy (2020) and Renewable Hydrogen Master Plan (2021).
KEY PROJECTS BEING UNDERTAKEN
In progressing Australia’s efforts to become a key player in the hydrogen industry, a wide range of hydrogen-related projects have been proposed or have already commenced throughout Australia.
Hydrogen Jobs Plan (SA): South Australia is currently in the process of constructing the world’s largest hydrogen production facility, power plant and storage at Whyalla on the Eyre Peninsula.
Eyre Peninsula Gateway Project (SA): This water electrolysis plant will produce renewable hydrogen and renewable ammonia on the Eyre Peninsula, as part of a larger pipeline for the domestic and international market.
Illawarra Hydrogen Technology Hub (NSW): The proposed hub in Port Kembla will include a 10MW electrolyser with the capacity to produce enough green hydrogen to power 40 heavy vehicles per day.
Good Earth Green Hydrogen and Ammonia (NSW): In New South Wales, an expanded solar farm will be constructed to renewably power the green hydrogen and ammonia plant on the Moree Plains.
Hume Hydrogen Highway (NSW and VIC): The New South Wales and Victorian governments are working together to develop an Australian-first renewable hydrogen refuelling network along the Hume Highway.
Hydrogen Park (VIC): The construction of a 10MW electrolyser in the Murray Valley will produce renewable hydrogen to start decarbonising the gas network, with similar construction in Tonsley (SA) and Gladstone (QLD).
Central Queensland Hydrogen Hub (QLD): A hydrogen production facility and liquefaction plant will be constructed in Gladstone with a focus on the export of liquefied renewable hydrogen to the international market.
Yuri Renewable Hydrogen to Ammonia Project (WA): An electrolyser will be constructed on an existing liquid ammonia plant in the Pilbara to facilitate the use of renewable hydrogen in the production of ammonia.
Green Hydrogen Hub (TAS): The Tasmanian government has proposed a hydrogen production plant up to 300MW within Bell Bay to begin converting manufacturing, transport and energy industries to renewable energy.
Darwin H2 Hub (NT): The Northern Territory government has proposed a hub to be constructed in Darwin that will generate solar power to fuel a green hydrogen production facility.
LEGISLATIVE CHANGES AND IMPACT
To facilitate the production and utilisation of hydrogen with all the projects that are being undertaken nationwide, the majority of the State governments have now begun to introduce key legislation.
South Australia has introduced the Hydrogen and Renewable Energy Act 2023 (SA) and the Hydrogen and Renewable Energy Regulations 2024 (SA), which regulates the exploration of renewable energy sources, as well as the construction and operation of key hydrogen infrastructure. This legislation facilitates the granting of licences, ensures ecological sustainability, and enables engagement with rural, regional, and Aboriginal communities.
New South Wales has introduced the Energy Legislation Amendment Act 2021 No 34 (NSW) and the Gas Supply (Safety and Network Management) Regulation 2022 (NSW), which regulates the use of electricity for the production of hydrogen, as well as the safety, licensing and management of hydrogen gas in the network.
Queensland has introduced the Gas Supply and Other Legislation (Hydrogen Industry Development) Amendment Act 2023 (Qld), which amends the licensing and regulation of gas transportation through the pipeline framework in Queensland, to allow for hydrogen and other renewable gases to be transported. This predominantly amends the Gas Supply Act 2003 (Qld) and the Petroleum and Gas (Production and Safety) Act 2004 (Qld).
Western Australia has introduced the Petroleum Legislation Amendment Act 2024 (WA), which should come into operation once the accompanying regulations have been developed and it aims to regulate the exploration of naturally occurring hydrogen in Western Australia.
Tasmania has introduced the Water Miscellaneous Amendments (Delegation and Industrial Water Supply) Act 2023 (Tas) which allows for the industrial use of water for hydrogen production.
Whilst some states and territories are yet to make legislative change to further regulate the production or use of hydrogen, it is evident that the rapid increase in construction of hydrogen-related facilities and initiatives will propel future legislative development within the Australian hydrogen industry.
This article was written by John Vozzo, Partner, Jonathan Davies, Special Counsel and Natasha Davey, Solicitor.
