The Morrison Government’s economic plan is boosting the Northern Territory’s potential as an energy powerhouse by investing in regional areas, growing export opportunities while creating thousands of jobs to build a strong economy for a stronger future.
A $300 million package will fund a new hydrogen hub in Darwin and multiple carbon capture storage (CCS) sites within the Middle Arm priority region, as identified in the Government’s Energy Security and Regional Development Plan, which has allocated $2.6 billion for projects in the Northern Territory.
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.
“There is a clear choice at this election and Australians can vote for a stronger economy under the Liberal and Nationals or a weak economy under Labor with higher taxes and real consequences on your mortgage repayments, grocery bills and household budget.”
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 from Liquefied -Natural Gas (LNG) production at Darwin and connect production with CO2 processing facilities and storage reservoirs.
- 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 a 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.
There are significant opportunities in clean energy, especially hydrogen exports that could directly support 16,000 jobs by 2050, plus an additional 13,000 jobs in renewable energy infrastructure construction.
Clean hydrogen production for both export and domestic use could generate more than $50 billion in additional GDP by 2050.
Minister for Industry, Energy and Emissions Reduction Angus Taylor said these investments will turbocharge the development of Australia’s hydrogen industry and give Australian 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 have the potential to 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 investment.
In April, the Morrison 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 to grow the Territory’s clean hydrogen industry, reduce emissions in the gas sector and support the development of the Beetaloo basin.