Northern Territory

Northern Territory – Hydrogen Industry Policy Initiatives

NT hydrogen report

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.  Attracting investment into the emerging solar power sector, a key enabler for the production of renewable hydrogen via hydrolysis (of seawater), is a key priority.

In November 2019, the Northern Territory Government announced the creation of the Office of Sustainable Energy within the Department of Trade, Business and Innovation. 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.

In July 2020, the Office released the Northern Territory Renewable Hydrogen Strategy which articulates the Government’s approach to the development of a renewable hydrogen industry in the Territory. The strategy articulates the potential hydrogen opportunities and the Territory’s competitive advantages.

In October 2021, the Northern Territory Government released the Northern Territory Renewable Hydrogen Masterplan. The Masterplan 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.

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.

In August 2022, the Northern Territory Government announced that it had signed a Memorandum of Understanding with Total Eren to progress development of the Darwin H2 Hub project.

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.

Large-scale renewables-based hydrogen project activity in the Northern Territory include the Desert Bloom Hydrogen Project, the Tiwi H2 Project, the Darwin H2 Hub development, and the Green Springs Project. The Northern Territory Government has awarded Major Project Status to the Tiwi H2 Project and Desert Bloom Hydrogen and has entered into Project Facilitation Agreements with both proponents. Other projects are believed to be advancing in their planning and evaluation.

 

Updated: October 2022