All is not lost: ANZ says Australia can still win hydrogen race

afr.com:

Australia’s ambitions to develop a green hydrogen industry have suffered only a temporary setback from the US Inflation Reduction Act, and enjoy positive prospects at the hands of state and federal policies, funding support, and demand from key Asian trading partners.

That is the view from the head of ANZ’s global head of project and export finance Aaron Ross and head of new energy corporate finance Nick Easingwood, who say Australia’s renewables-based hydrogen sector has the policy support and natural advantages to deliver on its potential despite the IRA’s generous incentives inevitably drawing capital to the US.

ANZ’s Nick Easingwood (l) and Aaron Ross expect export credit agencies to be key in funding hydrogen projects. Louise Kennerley

“I do see a shift towards the US under the IRA, but in terms of what we’re hearing from our customers, they’re still moving ahead and Australia is still key,” Mr Easingwood told The Australian Financial Review.

Mr Ross pointed to strong interest from export credit agencies – in countries such as Japan, South Korea, China and Singapore – to help fund projects alongside banks that would advance the transition to low-carbon energy. He envisages that, just as has been the case in liquefied natural gas, funding from ECAs will provide a deep pool of capital available for hydrogen and other clean fuels.

“That is the way that we’re going to solve effectively the funding need, or certainly the capital commitment that’s required for Australia to build a very significant industry in this space,” Mr Ross said.

ANZ has yet to sign on the dotted line to provide financial support to a green hydrogen project, but Mr Easingwood said he expected deals “sooner rather than later” and that the bank had