Gladstone could miss out on green hydrogen opportunities post federal electionJBy Jasmine HinesABC CapricorniaTopic:Hydrogen Fuel1h ago1 hours agoWed 30 Apr 2025 at 12:33amGovernments have identified Gladstone as a region vulnerable to decarbonisation. (ABC News: Jasmine Hines)In short:Labor's critical minerals and hydrogen production tax credits will be scrapped if the LNP wins the federal election.Experts say the incentives are needed to make Gladstone's emerging export industry competitive with international markets.What's next?The election is on Saturday.abc.net.au/news/gladstone-could-miss-out-on-green-hydrogen-opportunities/105228458Link copiedShareShare articleWith a view across the southern Great Barrier Reef and shrouded by state forests, it is easy to forget Gladstone is one of the most emissions-intensive places in Australia.But the city is a major Australian producer of cement, alumina, aluminium, and ammonia, while the Gladstone Port — one of the biggest bulk commodity ports in the world — facilitates tens of billions of dollars' worth of trade annually through its exports of products like coal and gas.State and federal governments have earmarked the city's future as a possible green hydrogen powerhouse.Stay updated:Federal election live updates: Get the latest news from the campaign trailCatch the latest interviews and in-depth coverage on ABC iview and ABC ListenThis is something some experts and residents believe would shore up its future if a government could pull it off.Last year Prime Minister Anthony Albanese announced temporary tax credits that would see producers of green hydrogen receive $2 per kilogram of renewable hydrogen produced for a period of up to 10 years.The Gladstone port is a major exporter of coal. (ABC News: Scout Wallen)The initiative would cost the government an estimated $8 billion across 10 years initially, and then an average of $1.2 billion per year from 2034-35 and 2040-41.The LNP has vowed to scrap the policy if it is elected.Loading YouTube contentGreen hydrogen and GladstoneGreen hydrogen can be produced when it is extracted from water through electrolysis, which is powered by a renewable energy source.Gladstone resident Jade Wright is a student nurse who worked as a deckhand on boats and has done maintenance work at industrial facilities.Gladstone local Jade Wright would like to see the hydrogen industry flourish in the city. (ABC News: Jasmine Hines)Having been a teenager during Gladstone's last boom and bust cycle from LNG in the 2010s, she is worried about the city decarbonising and what it could look like."The way it [the bust] changed the community in town … and the hole that was left when they left, that's the kind of emotional stuff you don't really hear from the technical experts," she said.Ms Wright said government investment should be made to kickstart the green hydrogen industry."If hydrogen can't get off the ground, the whole of Gladstone continues to struggle," she said.Read more about the federal election:ANALYSIS: Why Dutton can't resort to a scare campaign with older AustraliansAustralia's next prime minister will inherit a 'world in disarray'Find out how your views line up with the major parties with Vote CompassWant even more? Here's where you can find all our 2025 federal election coverageBut on the other side of politics, the LNP takes a different view.Its flagship election energy policy is to build small nuclear power plants around Australia.One of these would be just over 100 kilometres to the west of Gladstone, near Biloela.Local scaffolding business owner David Nunn co-founded the CQ Nuclear Alliance three years ago and believes it is the way forward.Gladstone businessman David Nunn co-founded the CQ Nuclear Alliance. (ABC News: Jasmine Hines)He is wary of the government support provided to the private sector for renewable projects, including for green hydrogen."We've got to run a business in the private sector. We have rules, people we have to deal with. [Then] other sectors suddenly get a free ride," he said."I support any industry that stacks up financially."Mr Nunn said the nuclear industry had been proven overseas, while he believed green hydrogen was still in an experimental stage.But if Gladstone's green hydrogen dream crumbled, and emissions-intensive industries were wound back, Ms Wright believed Gladstone would suffer."Without the jobs, without the heavy industry, as a town, we're kind of flailing," she said.Fortescue has the largest hydrogen electrolyser manufacturing plant in the country in Gladstone. (Supplied: Queensland government)CQUniversity Professor Jonathan Love said the developing industry would need incentives to become competitive and give investors confidence.Professor Love said Gladstone had the potential to be a major exporter of hydrogen, but only if the industry was incentivised by the government."It's just going to put a major handbrake on the industry. Investment will stall and it's going to hold things back substantially," he said."If Australia is too late getting there then there'll already be a market that the likes of Japan and South Korea will be tapping into."A hydrogen electrolyser. (ABC Illawarra: Tim Fernandez)A paper published by the Nature Energy journal earlier this year tracked 190 green hydrogen projects globally, finding only seven per cent were completed on time.Gruen Nation — Add to watchlistPhoto shows An election sign of Wil Anderson in a neighbourhood with a dog urinating on it with Gruen Nation Election edition and iview.It's election season and politicians are trying to sell you the world. The team at Gruen isn't about to buy it. They're taking a big swing at the election, showing you how the democracy sausage is made, all the sizzle and none of the meat.It found to keep global warming at 1.5 degrees above pre-industrial levels, production needed to grow 380-fold and double each year."That's where these incentives are needed," Professor Love said.He said current production methods using natural gas and coal were carbon-intensive, and green hydrogen was essential to meeting net zero emissions by 2050.Green hydrogen already in useRenewable hydrogen is already being used in the city's gas network, while billionaire Andrew Forrest's company Fortescue is manufacturing hydrogen electrolysers in Gladstone.The next stage of the company's project will see the electrolysers produce green hydrogen.An electrolyser built by Fortescue. (Facebook: Glenn Butcher MP)A Fortescue spokesperson said incentives were critical to developing a green iron industry, which required large amounts of green hydrogen as a fuel source."This kind of government support will help attract large-scale investment, foster innovation, and secure thousands of new jobs in advanced manufacturing," it said.LoadingLoading...Having trouble seeing this form? Try this link.Posted 1h ago1 hours agoWed 30 Apr 2025 at 12:33amShare optionsCopy linkFacebookX (formerly Twitter)Top StoriesAustralian dollar bounces higher after inflation figures announcedLIVEPhoto shows Finances genericHeadline inflation stable at 2.4pc while RBA's preferred measure drops within targetBREAKINGPhoto shows Cash money in a purse with a calculator, tea towel, list of bills on a notepad and a penAustralia faces 'lonelier' world with rules-based order crumblingTopic:National SecurityPhoto shows Two men wearing glasses and suits behind the backdrop of the world map.There's a reason Dutton can't resort to a scare campaign with older AustraliansAAnalysis by Annabel CrabbPhoto shows Peter DuttonHolmes à Court fuels movement that denies he will have seat at tableTopic:Political Parties and MovementsPhoto shows shac tealRelated storiesWhat do the new tax credits for critical minerals and green hydrogen mean?Topic:Federal GovernmentPhoto shows Raw vanadium rockWhy Australia's energy policy continues to be dominated by politics rather than economicsIAnalysis by Ian VerrenderPhoto shows Wind turbines are set to dot the landscape in Victoria's westAustralia's first commercial-scale green hydrogen electrolyser facility is open for businessTopic:Alternative EnergyPhoto shows Industrial factory with sunset in backgroundRelated topicsEnergy PolicyGladstoneHydrogen FuelIndustryNuclear EnergyTop StoriesAustralian dollar bounces higher after inflation figures announcedTopic:Stock MarketPhoto shows Finances genericBreaking: Headline inflation stable at 2.4pc while RBA's preferred measure drops within targetTopic:InflationAustralia faces 'lonelier' world with rules-based order crumblingTopic:National SecurityThere's a reason Dutton can't resort to a scare campaign with older AustraliansAAnalysis by Annabel CrabbHolmes à Court fuels movement that denies he will have seat at tableTopic:Political Parties and MovementsJust InParamedic 'frustrated' at being forced to stay outside of Bondi stabbing sceneTopic:Crime18m ago18 minutes agoWed 30 Apr 2025 at 1:58amTrump dismisses 'fake' approval rating as Americans voice tariff fearsTopic:World Politics41m ago41 minutes agoWed 30 Apr 2025 at 1:35amHeadline inflation stable at 2.4pc while RBA's preferred measure drops within targetBREAKING27m ago27 minutes agoWed 30 Apr 2025 at 1:50amHow Les Kiss went from rugby league winger to the Wallabies' next coachAnalysis by Luke Pentony48m ago48 minutes agoWed 30 Apr 2025 at 1:29amMore Just InBack to top