Press conference with Member for Fremantle Josh Wilson - Jandakot, WA

JOSH WILSON, MEMBER FOR FREMANTLE: Good morning. It's great to be here in Jandakot in the Federal Electorate of Fremantle at ATCO's Clean Energy Innovation Hub, the first of its kind in Australia. And I think that's appropriate because I represent the community that's got a great appetite for all the things that come with energy transformation the world is undergoing. I know the truth that’s the case for communities around Australia. They want cleaner air, they want lower emissions as part of how we tackle climate change. They want greater energy security, cheaper energy prices and jobs and all the business opportunities that come with the transformation that we have to make.

But hydrogen has to be a big part of it because it contributes to some specific challenges; transport, fuel, storage and the potential for us to export our abundance of clean renewable energy. The greatest thing about today is having my Federal colleague, Chris Bowen, the Minister for Climate and Energy here at Jandakot, here in Fremantle. And in the first 12 months of the Albanese Government he's already put us on a path in a much better way, in a much forward leaning way than that Australia really should have been on for some time. So I’ll hand over to Chris. 

CHRIS BOWEN: Well, thanks very much Josh. It's great to be here in the electorate that you love and represent so well, and great to be here at ATCO. Well, Australia can, and will be, a renewable energy powerhouse, and green hydrogen will be an important part of that story. Hydrogen is important. It enables us to store energy, and in due course it will enable us to export energy and to export energy right around the world, to export renewable energy to all parts of the earth.

And the world is in a race when it comes to hydrogen, and Australia needs to lead that race, and under our government, we'll continue to do that. I'm doing two things today. I'm releasing the State of Hydrogen Report for this year. It shows that there are encouraging signs. There are more than 100 clean hydrogen projects underway across our country. That's up from just over 60 not more than 12 months ago. So things are moving.

And while the world is in a race, I'm very pleased that 40 per cent of the world's clean hydrogen projects are being undertaken right here in Australia. We have a lot more to do. This race won't be won by sitting back. It will be won by constantly improving policies. I was very pleased, earlier this year, that the State and Territory Energy Ministers unanimously agreed with me that it was time to refresh and rewrite a national hydrogen strategy, and we're in the process of doing that and I'll have more to say about that in coming months. That's really important.

Also today, I'm announcing and launching a funding round through ARENA for important investments in hydrogen: $50 million of grants open under the Albanese Government from today. Now, I know ATCO would be the first to say ARENA funding was important as ATCO was starting this journey. ARENA funding will be important for people right across the country at various stages of development, of green hydrogen projects, that ARENA funding will be vital and that $50 million that we're launching today alongside the National Hydrogen the State of Hydrogen Report is an important indication to Australian investors and to investors right around the world that the Albanese Government takes hydrogen and our green hydrogen capacity seriously.

ATCO are leaders in Australia and around the world. And I want to thank Russell and the team for having us here today. I was very pleased, in Berlin earlier this year, to announce funding with my German counterpart, Bettina Stark Watzinger, for ATCO and other Australian hydrogen developers. That just shows here you had an Australian Minister and a German Minister in Berlin announcing Australian and German funding for projects all in Australia.

And ATCO, from here in the Fremantle community right across the to Illawarra community where that funding was announced for, is leading in Australia's green hydrogen and clean hydrogen development, and I welcome that very much and I welcome further leadership. I'm going to ask Russell just to say a few words to welcome us here. Then we'll we take questions on hydrogen. And then, if you like, I'll take questions on other matters of the day after we've dealt with today's announcements. Russell.

RUSSELL JAMES, ATCO GENERAL MANAGER OF HYRDOGEN AND FUTURE FUELS: Thank you very much, Minister. My name is Russell James. I'm the General Manager of Hydrogen and Future Fuels here at ATCO. I'd really like to thank and welcome everybody to this site, and thank the Minister for visiting ATCO today to make this very significant announcement.

We believe that hydrogen plays an important role in the energy transition, and that's why we've been investing in hydrogen since 2017. With the help of ARENA, we were able to develop this world class facility, the Clean Energy Innovation Hub, to demonstrate and operationalise hydrogen production and use across the valley [Indistinct].

On this site we take renewable hydrogen that we produce through solar, as well as store it into batteries. We use that solar power to produce renewable hydrogen through an electrolyser. That's splitting water into hydrogen and oxygen. We're able to store that hydrogen and use it across the value chain in the opportunity for hydrogen. And that's in blending into our gas distribution network; we're able to use hydrogen in our hydrogen appliances that we have in our hybrid home and also in our training centre. And we're also able to blend that hydrogen and demonstrate the opportunity to blend hydrogen into our natural gas network, and we're doing that across 3,000 homes today.

We're also able to generate electricity through our onsite fuel cell, as well as refuel a fleet of Toyota hydrogen fuel cell Mirai vehicles which use fast fill, taking around three to five minutes to fill a car. That will enable it to travel around 700 kilometres. But we see a great opportunity here in Australia for hydrogen to play an important part in that energy transition. We have all the resources and all the network resources that allow us to become a green global powerhouse in the energy transition across the globe. But we need to act and move fast, and the support of government and industry together with support from ARENA will allow us to continue to have confidence in these investments going forward. We look forward to participating in these going forward, and I thank everybody for their time today. 

CHRIS BOWEN: Thanks very much, Russell. Questions on hydrogen first.

JOURNALIST: In 2022 you said we doubled the number of green hydrogen projects announced. Are we looking likely they will continue doubling again in 2023? Is that funding going to help us continue to grow?

CHRIS BOWEN: That's the plan. You know, more than 100 projects across the country is great but it's not enough. We need to see hydrogen developed from one coast to the other. We need to see it increasingly invested in. In terms of research and development, we're not yet at the level where it can be exported commercially. Scientifically, we have some way to go for those exports. But the potential is huge and, as I said before, we're in a race. We're in a race with many other countries who see themselves as potential hydrogen superpowers. Under the Albanese Government we intend to be right at the front of that race.

JOURNALIST: In terms of infrastructure, how does hydrogen work? Does it just go straight through what's existing where gas goes?

CHRIS BOWEN: Well, Russell might choose to add, it can play a role in existing gas networks, as it does here, to a certain percentage. When you get to a higher percentage, you need to invest in different infrastructure. Again, that's much of the work that's underway. Hydrogen can play a role in the existing infrastructure, in all the new infrastructure investments as well. But, Russell, you're doing work on that here, you might choose to add to that.

RUSSELL JAMES: Thank you, Minister. Yes, our existing infrastructure can be utilised with this with hydrogen today. So the hydrogen that we produce here, we've blended up to 10 per cent. We've also done some trials at 20 per cent.  But we'll be blending that hydrogen, through our existing network, at 2 per cent levels to 3,000 homes this year; with the existing infrastructure we'll be moving that up to 10 per cent by the end of the year.

JOURNALIST: Yeah, I'd love to hear a little bit more about that trial. So is it running for the whole year? And I guess from a consumer's perspective, like, do any of those households notice a difference having hydrogen going through their systems?

RUSSELL JAMES: A really interesting question. So householders won't notice any difference to their use of their cooktops, their hot water or their heating or their bill for this trial. And that's what we're trying to do. We're demonstrating that the network is capable to handle that 10 per cent blend across our broader network. And that's a great way to store all the renewable energy that we have excess here in WA and across Australia in existing infrastructure, without having to spend any more money. What that does is help to activate the hydrogen supply chain in a big way.

JOURNALIST: And there's issues   people think there are concerns that we don't have the capacity to store commercial quantities. Is it a bit of, you know, we’re trying walk before we can run?

RUSSELL JAMES: I think the demonstration of this site is trying to showcase that it is possible at the end of the day. So we've got all of the ingredients at the energy ecosystem [Indistinct] today on this site but we can scale up and across   across our networks and the networks of Australia. So the benefit of storing inter-gas distribution networks is that 10 per cent capital today, with the aim with changes to regulation and policy. That will enable that to occur today, including things like renewable gas [Indistinct] as well.

JOURNALIST: Is that infrastructure, you know, keeping up? You know, you said that we don't have the infrastructure right now but are we moving quick enough?

RUSSELL JAMES: I think that the infrastructure requirements on renewable access is something that needs further investment. The transmission infrastructure, renewable assets to help power these type of production facilities need some further work to ensure that we keep pace with the rest of the globe in hydrogen developments. And this just today, will help enable that.

JOURNALIST: I know that obviously ATCO is going to have to reduce emissions like everyone else. How does hydrogen factor into that? Is there like an ultimate goal where some percentage natural gas, some percentage hydrogen? Like, what's the overall goal there?

RUSSELL JAMES: So   we we're looking at decarbonisation of our own use and also for our customers. And that can include hydrogen, but also things like biomethane and biogases that can also help complement through our existing networks. So we're looking at how we can reduce our gas use but also our customers' use across the network.

JOURNALIST: What is WA's role specifically going to play in future of green hydrogen?

CHRIS BOWEN: A big role. I mean, Western Australia is a big State with lots of energy resources. Every state has a role to play. We don't have the capacity or the luxury of saying, you know, this State or this Territory won't play a role. But Western Australia will play a big role. I'm meeting this afternoon with Roger Cook and Bill Johnson. Bill Johnson, of course, is my Energy Minister counterpart. He's a very key part of our initial Energy Ministers' meetings; and I know the Western Australian McGowan Government has great plans for hydrogen. I look forward to partnering further with Roger Cook and the Western Australian Government, just as I do with Mick de Brenni in Queensland and Ministers right across right across the board. Any other questions on hydrogen?

JOURNALIST: Yes. A colleague of mine wants to ask about turquoise hydrogen. Do you know anything about - 

CHRIS BOWEN: There's too many colours. There's pink, there's yellow, there's gold, there's -

JOURNALIST: Do you know anything about that?

CHRIS BOWEN: There's - there's turquoise. Look, ultimately, ultimately, what we want is low carbon and no carbon hydrogen. That ultimately is green hydrogen. There are other mechanisms which people are also enlisting in and that's fine. But, ultimately, green hydrogen will be the key going forward for Australia.

JOURNALIST: Maybe just a last one with Russell, or whoever's best placed. Just for the average Joe at home who has no idea what hydrogen energy is, could you maybe try and just   just dumb it down and explain that?

RUSSELL JAMES: So hydrogen is the most abundant molecule on the planet. What we make hydrogen here today at Jandakot is by splitting   splitting water. So we take hydrogen   sorry, we take water which is H2O and we put it through something called a proton exchange membrane. And when we power that proton exchange membrane, that splits those molecules into hydrogen and oxygen. We capture that hydrogen and then we're able to use it in all those cases that we've talked about: gas blending, refuelling vehicles, or converting it back into electricity as well.

JOURNALIST: Great. Thank you.

CHRIS BOWEN: And, ultimately, hydrogen is a form of storage. That's how we store power. One of them is alongside batteries and pumped hydro and other forms, hydrogen is the important form of storage. And as we move to a renewable economy, 82 per cent by 2030, hydrogen will play an important role in storing that renewable energy. Okay, other matters of the day?

JOURNALIST: The latest unemployment figures remaining unchanged, are you worried that that will make the Reserve Bank raise interest rates again next month?

CHRIS BOWEN: I don't think low unemployment's something to be worried about. I think low unemployment is something to celebrate. 3.5 per cent across the country. 3.4 here in WA. These are very strong figures, very strong figures, which the government's pleased with. And, you know, there's been all sorts of doom and gloom and people trying to talk down the Australian economy from the Opposition and others, these are a good set of figures and encouraging for Australians.

JOURNALIST: Canberra's asking on fuel efficiency standards, is Australia a dumping ground for dirty carbon?

CHRIS BOWEN: Well, Australia is the only OECD country without fuel efficiency standards. Australia and Russia are the only two developed countries without fuel efficiency standards. Last year, Minister Catherine King and I released a discussion paper about the National Electric Vehicle Strategy. We'll be providing further updates on that soon about the process for ensuring that Australian   Australians have access to electric and hydrogen, low emissions vehicles regardless of their income.

Some people say electric vehicles are only for people with wealth. I fundamentally reject that. I want electric and hydrogen cars available for Australians regardless of where they live and   and low cost options available to them as well. Obviously, fuel efficiency standards are an important part of that conversation. We'll have more to say.

JOURNALIST: Can I just get you to elaborate on the specific timeline on the release of the strategy, and are you able to confirm at this stage if it will include fuel efficiency standards? And then, just a follow up to the question about you wanting low income earners to be able to purchase EVs, is the government open to subsidising the cost or is it just about increasing supply?

CHRIS BOWEN: Well, what will be in the National Electric Vehicle Strategy will be clear when Minister King and I release the National Electric Vehicle Strategy and not today, but we'll do that. In terms of an update of what's next in the development of the National Electric Vehicle Strategy, we'll be doing that soon.

In terms of cost, I'd point out that when we came to office, electric vehicle sales were 2 per cent. They're now above six, in 10 months. No small part in that has been played by electric vehicle tax cut, passed through the Parliament against the Opposition of the Opposition who are meant to support lower taxes but they voted against the tax cut for electric vehicles. That's driving behaviour. And, of course, other things we can do in relation to charging infrastructure. We've got our Driving the Nation Policy of a charger, fast charger, once every 150 kilometres on our national highway. That's very important. Of course, in Western Australia we've got   working with the State Governments on the hydrogen highways for charging of hydrogen vehicles. So there's a lot more to do. We'll have more to say when we announce the next steps in the development of the strategy. Any other questions?

JOURNALIST: Just further on that again. With the US's strategy two out of every three cars being sold will be electric. Is that achievable here in Australia?

CHRIS BOWEN: Oh, look, I believe Australia can catch up with the rest of the world. I mean Norway is world's best practice at the moment in terms of high electric vehicle sales. But not just Norway. You look at the United Kingdom, United States, other countries are way ahead of Australia's electric vehicle sales. That is partly a supply issue because we don't require low emissions vehicles to be sent to Australia because we don't have fuel efficiency standards. It's partly because the previous government talked down electric vehicles. And I can confirm that countries with high electric vehicle sales do also have weekends. The two can coincide and they will continue to be great weekends in Australia with low emissions vehicles taking Australians everywhere they want to go. Right. Thanks very much.