Australia United Arab Emirates Business Council sees great opportunities in renewables but warns of lack of price signal

The blunt assessment of Australia’s prospects as a hydrogen superpower – which is central to the Morrison government’s ‘tech, not tax’ approach to achieving net zero by 2050 – contrasts with the optimistic vision of the transnational group on how the two countries can evolve towards the “growing sector of renewable and alternative energies”.

The report identifies more than 70 green hydrogen projects underway, totaling more than 50 gigawatts of power, including four of the largest in the world, led by the Asian Renewable Energy Hub in eastern Pilbara.

Focus on future exports

In the foreword to the report, Mr. Pyne and Co-Chair Badr Al-Olama state that Australia and the United Arab Emirates share “the same commitment to play a leading role in the global transition to a low-income future. carbon costs ”.

The report ranks hydrogen as a major opportunity for both countries and states that future demand for fuel will emerge “when the pricing of the hydrogen economy is able to compete with fossil fuels, for example, as a substitute. diesel, natural gas or coal “. .

He welcomes the focus of the coalition government on future hydrogen exports, in particular to Japan and South Korea.

“This push has given UAE investors a significant opportunity to deploy capital in Australian green hydrogen / green ammonia projects,” write the report’s authors.

“There hasn’t been a strong demand side policy, and it’s unclear when progress could be made.

“Australia does not have a carbon price to subsidize the switch to green fuels.

“Climate change awareness among industries, including mining and manufacturing, has also seen increased shareholder activism, leading many of Australia’s largest companies to commit to aligned net zero goals. on Paris, although few of them have published credible ways to achieve these goals. “

While hydrogen is expected to be of interest to lenders by the mid-1930s, opportunities for direct investment in the technology in Australia are limited.

“Many European and Japanese developers are more advanced along the value chain,” the report says.

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