The federal government will chip in $30 million for the hydrogen power plant billionaire Andrew "Twiggy" Forrest plans to build in Port Kembla.
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Mr Forrest's company Squadron Energy - which is also behind the gas terminal at Port Kembla - has plans to build a power station in the same area.
The project is being overseen by Squadron Energy subsidiary Australian Industrial Power.
Squadron Energy CEO Stuart Johnston was pleased to see the $30 million allocated to the project in the federal budget.
"We welcome the Commonwealth's continued commitment to the development of the dual-fuel (gas and green hydrogen) power station at Port Kembla by Australian Industrial Power," Mr Johnston said.
"We will continue to work collaboratively with the state and federal governments to deliver this transformational project.
"This will help the federal government achieve its objectives of creating firm generation capacity, placing downward pressure on household electricity prices and support a more rapid transition towards clean, renewable electricity for the Australian market."
It would use gas brought into the terminal to create electricity, rather than using local supply.
It will have the capability of operating on 30 to 35 per cent green hydrogen by volume from its first commissioning, with plans to operate on 100 per cent hydrogen by 2030.
"The AIP Port Kembla power station project is an important pillar of the Illawarra Hydrogen Hub, which RDA Illawarra has advocated for and we commend the Minister for Energy and Emissions Reduction, Angus Taylor, for his support" said RDA Illawarra CEO Debra Murphy.
She said the power station has the potential to create 700 construction jobs, 35 operational jobs and has a capital investment of around $1.2 billion.
EnergyAustralia's Tallawarra B hydrogen-gas power plant development at Yallah received $5 million in funding in the federal budget.
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Glen Humphries
I'm an award-winning senior journalist with the Illawarra Mercury and have well over two decades' worth of experience in newspapers. I cover the three local councils in the Illawarra for the Mercury, state and federal politics, as well as writing for the TV guide. If I'm not writing, I'm reading.
I'm an award-winning senior journalist with the Illawarra Mercury and have well over two decades' worth of experience in newspapers. I cover the three local councils in the Illawarra for the Mercury, state and federal politics, as well as writing for the TV guide. If I'm not writing, I'm reading.
