Green Energy: NSW prepares to launch $3 billion green hydrogen strategy today
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The New South Wales Government is set to launch its green hydrogen strategy today, which will include up to $3 billion in incentives to attract more than $80 billion in clean energy by 2050.
It is anticipated to more than halve the cost of green hydrogen production in NSW and support the $70 million development of hydrogen hubs in the Illawarra and Hunter regions, providing clean fuels for industry coming under intense pressure to decarbonise.
As reported in the Australian Financial Review, Treasurer and Energy Minister Matt Kean has said the strategy, which is primarily aimed at renewables-based hydrogen, would set NSW up as a global leader in the fuel and is expected to grow the size of the state’s economy by more than $600 million by 2030.
Hydrogen projects are expected to use electrolysers powered by green energy generated in NSW’s Renewable Energy Zones that split water into hydrogen and oxygen.
The state’s hydrogen strategy would ramp up the rivalry between state governments to attract international investment in hydrogen, which has the potential to provide low-carbon fuel for industry and for power generation, as well as for heavy trucks.
1414 Degrees (ASX:14D) has signed agreements with Woodside Energy Technologies Pty Ltd, a subsidiary of Woodside Energy to support further development and potential partnership in commercialisation of 14D’s SiBox thermal energy storage technology.
1414 Degrees have been working with Woodside to establish a project that will assess the commercial potential of SiBox.
An agreement has been executed for Woodside to contribute up to $2m to the estimated 1MWh SiBox demonstration module.
The validation project, which was previously announced to the market in May this year, is now scheduled to be commissioned in early 2023 upon which a series of operational tests will be performed into 2024.
Chief executive officer Matt Squire believe the technology “has the potential to be a major component of future renewable energy projects due to its flexibility and capability in delivering high temperature heat”.
“Having a partner with the technical and financial capability of Woodside will only accelerate the potential commercialisation of SiBox as a competitive clean energy storage solution.”
Following a review of results in the testing program, Woodside will then have the opportunity to notify 14D if they wish to proceed to jointly develop and commercialise the SiBox technology.
In this instance a special purpose vehicle (SiBox SPV) will be created to which the SiBox Intellectual Property (IP) will be transferred for future development and commercialisation.