Budgetary measures to align with green growth opportunities?
Team Veye | 30-Oct-2022
Presenting his first budget under the new Federal Government, Federal Treasurer Jim Chalmers outlined its priorities. In its bid to build a better future, the budget laid Powering Australia Plan to drive investment in cleaner, cheaper energy. The Government’s stand out measure in modernising the electricity grid will support the transformation to a clean energy future. Rewiring the Nation will use $20 billion of low-cost finance to make much needed upgrades to the outdated electricity grid.
This Budget, facing the challenges like climate change and decarbonisation has seized the opportunity to confront this head on. Infusing fresh investment in renewables generation and storage capacity will help reduce Australians' dependence on international energy prices and expedite decarbonisation. The enormous potential in Renewable energy can strengthen the economic future of Australia’s regions, revitalise the competitiveness of traditional industries, and power new ones as part of the transformation to net zero by 2050.
The Government’s plan to set up the $1.9 billion Powering the Regions Fund will help transform regional industries and support regional Australians access the economic opportunities of decarbonisation. The budget plans action on climate change and a $1.8 billion investment in strong action to protect, restore and manage our precious natural environment.
The Government, while expressing its concern on growing skills in the clean energy sector, is committing over $100 million to the New Energy Apprenticeships and New Energy Skills programs. Through these programs apprentices would be able to acquire necessary skills required in a clean energy role.
The measure would create jobs in clean energy sector and fast track growth in sectors such as green hydrogen and battery production.
Green Hydrogen refers to hydrogen produced using electricity generated from renewable sources and it creates no carbon emissions. Having near limitless potential, every single state and territory inside Australia is currently funding hydrogen projects. The IEA (International Energy Agency) and the World Energy Council have both identified Australia as a potential hydrogen production powerhouse and an ideal place to scale production.
In view of the future potential of Hydrogen, we profile two upcoming stocks from the sector, that could witness good growth in the future.
Pure Hydrogen Corporation Limited (ASX: PH2 or ‘Pure Hydrogen’) is a focused Clean Energy Company with Hydrogen and Gas businesses.
Pure Hydrogen, supplying hydrogen power generator has at its core, a hydrogen fuel cell and a powertrain that took over several years to develop. The Company has its technology at the forefront of the hydrogen revolution and it is being implemented commercially and locally to support up-and-coming trade industries that understand Hydrogen & H2 appliances.
Frontier Energy Limited (ASX: FHE), is an Australia-based renewable energy company.
The Western Australia government identified domestically produced green hydrogen as a significant part of the strategy to reduce the reliance on diesel, which is mainly imported. FHE's long term strategy is well aligned with the federal and state government's drive to decarbonise the energy supply to industry and households. The company with its project located strategically around existing infrastructure along with the recent announcement regarding the expansion of the existing landholdings remains well placed to support its long-term objective to become one of the first green hydrogen producers in Australia and have renewable green energy generation of more than 1GW. The expansion study results indicate that the future expansion of solar capacity on-site could eventually lead to even cheaper hydrogen production costs given economies of scale.
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