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Australian Government investment

Infographic showing the various amounts the Australian Government has invested in low emissions technologies. Text description provided immediately after image

This infographic shows Australian Government investment.

The Australian Government will invest at least $20 billion more in low emissions technologies in the decade to 2030, driving more than $80 billion of total public and private investment and supporting 160,000 jobs. This builds on $21 billion of investment over the last two decades. 

The government announced $1.7 billion of new funding for LETS 2021. This includes:

  • $464 million for clean hydrogen industrial hubs (this includes $54 million from previous funding announcements)
  • $250 million for carbon capture, use and storage hubs and technologies
  • $565 million for international partnerships
  • $73 million for soil carbon and livestock feed supplements.

This adds to the $1.9 billion announced for LETS 2020.

In the financial year ending 30 June 2021, the government committed $2.5 billion to projects through:

  • Australian Research Council
  • Australian Renewable Energy Agency (ARENA)
  • Clean Energy Finance Corporation (CEFC)
  • Clean Energy Regulator
  • Commonwealth Scientific and Industrial Research Organisation (CSIRO)
  • Department of Industry, Science, Energy and Resources
  • Northern Australia Infrastructure Facility.

This includes $1.1 billion invested in priority technologies.

Co-investment leveraged:

  • $4.6 billion co-investment leveraged by government investments in the financial year ending 30 June 2021.
  • $9.7 billion estimated investment in renewable energy in Australia in 2020. The source for this funding data is the Clean Energy Regulator’s December 2021 Quarterly Carbon Markets Report.

This content reflects year-to-date data for the financial year ended 30 June 2021 available from selected government agencies at the time the statement was prepared. We will publish updated figures for total investment as they become available.

Project examples

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Hydrogen

Murray Valley Hydrogen Park, AGIG

ARENA has given conditional approval for a $32 million grant to build a commercial scale 10 megawatt electrolyser to produce clean hydrogen in Wodonga, Victoria.

This will be amongst the largest in the world. 10% hydrogen will be blended into existing gas pipelines supplying 40,000 homes and businesses, a key step towards decarbonising Australia’s gas networks.

This is one of three projects conditionally approved for $103.3 million in total under ARENA’s Renewable Hydrogen Deployment Funding Round.

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Aluminium

Low Emissions Alumina, Alcoa & Rio Tinto

ARENA provided an $11 million grant to Alcoa to trial electrification of steam production for process heat at its Wagerup alumina refinery in Western Australia.

ARENA also provided a $579,000 grant to Rio Tinto to assess the viability of hydrogen calcination at its Yarwun alumina refinery in Gladstone, Queensland.

Both projects will help decarbonise alumina, Australia’s sixth largest export.

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CCS

Carbon Capture, Use & Storage (CCUS) Development Fund

In LETS 2020, the government signalled its intention to invest in supporting the commercialisation of CCS technologies.

Under the CCUS Development Fund, $50 million was awarded to six businesses to pilot, demonstrate and support the commercial deployment of CCUS technologies. These include direct air capture and removal, capture and geological storage from power plant operations, and capture and use of CO₂ in the production of construction materials.

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Livestock supplements

Programs to reduce livestock emissions

The $6 million Methane Emissions Reduction in Livestock program supports research into the abatement potential and productivity benefits of livestock feed supplements.

The $23 million Low Emissions Supplements to Grazing Animals at Scale program will help develop technologies to deliver low emissions feed to grazing animals. $1 million was also granted to commercially produce seaweed for low emissions feed.

International partnerships

Map of the world showing the benefits of international partnerships for low emissions technologies.

International partnerships will help achieve:

  • cheaper energy
  • emissions reduction
  • greater investment
  • job creation
  • expertise exchange
  • advances in low emissions technologies
  • export opportunities.

Building on commitments in LETS 2020, in 2021 the Australian Government announced $565.8 million to establish international partnerships on low emissions technology. International partnerships are key to finding and developing the solutions to the world’s climate challenges and reducing emissions while creating new economic opportunities.

Australia has already announced partnerships with Germany, Japan, the Republic of Korea, Singapore and the United Kingdom.

The partnerships will foster greater cooperation on low emissions technologies. They will underpin the development of new technologies leading to emissions reductions, job creation, lower energy costs, new trade opportunities and greater investment in Australia.

International partnerships will be delivered through a range of mechanisms, including co-funding applied research, pilot and demonstration projects, establishing supply chains, exchanging expertise, and building industry connections. Projects and initiatives under the international partnerships will complement efforts across Australia to advance low emissions technologies. This includes the work to ARENA, CEFC, CSIRO, state and territory governments, and private businesses.

International partnerships will build on the work already being done by the Australian Government to establish supply chains to catalyse development of a world-leading hydrogen export industry.

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Germany

Australia–Germany Hydrogen Accord

  • HyGATE program, with combined investment of approximately $130 million for research, development and demonstration projects along the hydrogen supply chain
  • Facilitating industry partnerships on demonstration projects in Australian hydrogen hubs
  • Exploring opportunities to supply hydrogen and its derivatives to Germany
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Japan

Low Emissions Technology Partnership

  • Partnership to support technologies, including clean hydrogen and ammonia; carbon capture, use and storage; lower emissions LNG; and low emissions steel and iron ore
  • Start of operations for Hydrogen Energy Supply Chain project, to produce and export liquefied clean hydrogen to Kobe, Japan
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Republic of Korea

Australia–Republic of Korea Low and Zero Emissions Technology Partnership

  • Collaboration on low and zero emissions technologies, including clean hydrogen and clean ammonia; low emissions iron ore and steel; hydrogen fuel cell electric vehicles; hydrogen power generation; carbon capture, utilisation and storage; energy storage; solar; and the critical minerals supply chain.
  • Research on hydrogen supply chains between Korean and Australian companies.
  • Low emissions steel and iron ore initiative to reduce emissions across the supply chain.
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Singapore

Low Emissions Maritime Initiative

$30 million co-investment from Australia, Singapore and industry for pilot and demonstration projects to trial the use of low emissions technologies, including clean hydrogen and ammonia, in shipping and port operations. This builds on an existing memorandum of understanding on low emissions technologies.

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United Kingdom

Australia–UK Partnership on Low Emissions Solutions

  • Cooperation on research and development across six key technologies including clean hydrogen; carbon capture, use and storage; small modular reactors including advance nuclear designs and enabling technologies; low emissions materials including green steel; and soil carbon measurement
  • As a first initiative, we will develop a joint industry challenge to increase the competitiveness of industry, reduce emissions and support economic growth