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The Latrobe Valley has been identified as a potential beneficiary of the Federal Government’s $1.9 billion investment in low emissions technology.

The investment, as part of the coming Federal Budget, includes $70.2 million for a regional hydrogen export hub and $50 million for carbon capture and storage pilot program.

The Latrobe Valley is named as a possible location and Federal Member for Gippsland Darren Chester said projects like the export hub and the pilot program would support local jobs.

“The Latrobe Valley suffered significant job losses in the energy sector when Hazelwood closed in 2017,” Mr Chester said.

“Not only would these projects be an investment in cleaner and low emission energy, but also an investment in jobs now and into the future.”

Mr Chester said investments in cleaner energy had already been made in the Latrobe Valley.

“The Federal Government has invested around $50 million towards the $500 million Hydrogen Energy Supply Chain Pilot Project to produce hydrogen from the Valley’s abundant supply of brown coal for export to Japan,” Mr Chester said.

“The pilot has created 400 jobs both in the Latrobe Valley and at the Port of Hastings and has the potential to create many more if it progresses to a commercial level.

“With the supply chain pilot already underway at Loy Yang power station, it makes sense to continue the hydrogen projects right here where we already have skilled staff and an understanding of the potential.

“Such an investment in our region would keep more locals in work and help to boost our economy as it recovers from a particularly difficult few years.”

The Federal Government’s Next Generation Energy Package will include:

  • $1.43 billion over ten years to the Australian Renewable Energy Agency to support soil carbon sequestration, carbon capture and storage, green steel production and industrial processes to reduce energy consumption
  • $95.4 million for the Technology Co-Investment Fund to help businesses in agriculture, manufacturing, industry and transport become more efficient and adopt new technologies
  • $50 million for the Carbon Capture Use and Storage Development Fund for pilot projects including potentially offshore Gippsland
  • $70.2 million for a regional hydrogen export hub, potentially in Latrobe Valley
  • $74.5 million for the Future Fuels Package for projects such as regional hydrogen refuelling sites
  • $67 million for new investments into microgrids
  • $52.2 million for energy productivity measures
  • $24.6 million for the Clean Energy Regulator to develop new Emissions Reduction Funds methods and
  • $35.4 million for better energy and emissions data and regulatory work.


Meanwhile this week’s release of the Low Emissions Technology Statement by Minister for Energy and Emissions Reduction Angus Taylor marks the first milestone of Australia’s Technology Investment Roadmap.

The roadmap is designed accelerate the development of new technologies to reduce emissions, open exporting opportunities and support local jobs.

Mr Chester said the roadmap would support 130,000 jobs by 2030 with many in regional areas.

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