Northern Territory

Northern Territory – Hydrogen Industry Policy Initiatives

In conjunction with its strategy to develop a minerals processing and gas/renewable energy-based manufacturing sector, the Northern Territory has a long-term vision to produce renewable hydrogen. Development of a renewable hydrogen industry is seen as a means of strengthening and diversifying the Territory economy.

In November 2019, the Northern Territory Government announced the creation of the Office of Sustainable Energy within the then Department of Trade, Business and Innovation (now Department of Mining and Energy). An important role of the Office is to co-ordinate energy policy and the implementation of renewable energy initiatives and projects across the Northern Territory.

NORTHERN TERRITORY RENEWABLE HYDROGEN MASTERPLAN

In October 2021, the Northern Territory Government released the Northern Territory Renewable Hydrogen Master Plan. The Master Plan charts a pathway for the Government to accelerate the development of a renewable hydrogen industry and outlines the enabling activities needed to secure private sector investment, including:

  • Demonstration phase: The Government is collaborating with proponents to progress research and trials.
  • Targeted application: The second phase will see the development of hydrogen production and end-use technologies.
  • Large-scale production for export: The final stage will see production and use technologies sufficiently developed so they are cost competitive.

Priority action themes in the Masterplan include local industry development, resource management, grow and harness demand, support innovation, and responsive regulation.

SUPPORT MEASURES

In June 2022, the Northern Territory Government announced an investment of AUD$5 million over four years to expand the Territory’s hydrogen industry. Key focus areas include:

  • Establishing fit-for purpose standards and regulations for the production, transportation, storage and use of hydrogen
  • Enhancing local workforce skills and capabilities.
  • Land use optimisation to enable efficient and timely infrastructure development.
  • Coordination of renewable hydrogen industry development with renewable energy resource assessments and strategic water planning.
  • Integration of hydrogen industry planning with the transport and logistics sector.
  • Building community understanding of the emerging hydrogen opportunities; and
  • Assessment of early commercial applications and economic fuel-switching opportunities.

The October 2022-23 federal budget released on 25 October 2022 contained expenditure allocations for several infrastructure projects in the Northern Territory, including AUD$1.5 billion in planned equity to support the construction of common user marine infrastructure within the Middle Arm Sustainable Development Precinct, with the aim of supporting export opportunities in Northern Australia for commodities such as green hydrogen and critical minerals.

The 2022-23 Northern Territory budget (presented in May 2022) announced AUD$14 million for preliminary design work and environmental approvals at Middle Arm. A further AUD$13 million was announced in the 2023-24 Northern Territory budget (presented in May 2023) for detailed design and preliminary works. Reference: Previous budget papers | Department of Treasury and Finance.

The 2024-25 Northern Territory budget (presented May 2024) included AUD$10 million per annum for three years from 2024-25 to support activation of the Middle Arm Sustainable Development Precinct, and stages 2 and 3 of the Tennant Creek to Darwin infrastructure corridor. The budget reconfirmed the residual funding from the AUD$5 million over four years as previously announced in June 2022, with AUD$2.5 million remaining to accelerate hydrogen industry development in the Territory.

In July 2024, the Northern Territory Government announced the signing of two Memorandum of Understandings with the Japan Organisation for Metals and Energy Security (JOCMEC), one of which establishes a framework for cooperation in various energy sectors including natural gas, carbon capture and storage and hydrogen production.

PROJECTS ACTIVITY

HyResource records six listings in the Projects-Active page for the Northern Territory, of which two projects (the Tiwi H2 Project, the Darwin H2 Hub development) have been awarded Major Project Status by the Northern Territory Government. Other projects are believed to be advancing in their planning and evaluation.

On 9 June 2023, the Northern Territory Government announced that it has issued ‘not to deal’ commitments to five proponents over specific parcels of land at the Middle Arm Sustainable Development Precinct, under which the preferred sites will be set aside for up to 12 months, to provide certainty to interested companies as they develop projects (two of the five proponents are proposing development of renewables-based hydrogen projects).

 

Updated: November 2024