Energy Legislation Amendment Bill 2021

Hansard ID: HANSARD-1323879322-119432

Hansard session: Fifty-Seventh Parliament, First Session (57-1)

Energy Legislation Amendment Bill 2021

Second Reading Debate

Debate resumed from an earlier hour.

Mr MARK COURE (Oatley) (17:35:41):Die Hard 4.0Die HardDie Hard 4.0

I will recap a little. The bill will also provide a backstop to protect critical energy infrastructure in the lead-up to a formed national framework. We need to stay ever vigilant to the threat that cyber security poses to our critical energy infrastructure. I talked about how cyber attacks on Ukraine power stations in 2015 and 2016 affected more than 200,000 consumers. In May this year the United States largest fuel pipeline operator was shut down for nearly a week, creating supply shocks in the United States market. I mentioned earlierthat recently I watched . I am probably the first member in this Chamber to mention with Bruce Willis. attempts to stop a cyber terrorist attack to hack into government computers, framework and infrastructure. It happens in real life and in Hollywood as well.

These types of cyber attacks are becoming more common. Over the past 12 months the Australian Cyber Security Centre received more than 67,500 reports of cybercrime of all types. It noted that approximately one quarter of cyber instances reported during this period were associated with Australia's critical infrastructure and essential services. We must do everything we can to prevent these kinds of attacks from impacting our energy supplies. Whether it be electricity, gas or pipelines we must ensure that the Minister has the appropriate powers to respond to cyber-related emergencies, which could avoid such crippling events as those in the United States, the Ukraine and around the world. In 2017 in his Independent Review into the Future Security of the National Electricity Market, Australia's former Chief Scientist recommended stronger security measures be put in place. While the national framework is currently being developed, the timing and the outcome of these measures are uncertain.

As I mentioned earlier, the number of attempted cyber attacks on our critical energy infrastructure is growing and that is a concern. We do not have time to wait. That is why it is appropriate and important for the bill to introduce a backstop measure that ensures energy generators, networks and pipelines can be required to implement appropriate cyber security arrangements to ensure continuity of our essential services. These backstop measures can also be designed to support the cyber security framework that is currently being developed nationally. Everyone in the Chamber knows that I could talk about the Energy Legislation Amendment Bill 2021, energy emergencies and cyber security for hours. It is important that the bill passes. I understand that those opposite support the bill. I commend the bill to the House.

Mr PAUL SCULLY (Wollongong) (17:39):

Via video link: I appreciate the opportunity to contribute to debate on the Energy Legislation Amendment Bill 2021. It is somewhat fitting that I do so remotely from Wollongong, a matter of kilometres from where a hydrogen hub should already be operating in New South Wales—but it is not. I will get to that in a moment. As previous speakers have noted, the bill amends a number of energy Acts, including the Electricity Supply Act 1995, the Energy and Utilities Administration Act 1987, the Forestry Act 2012, the Gas Supply Act 1996 and the Pipelines Act 1967. In the main, these amendments are aimed at improving administrative processes. It is the tidying up, if you like, of a range of Acts to reflect the changing energy mix in New South Wales.

Of course, Government members will boast of their efforts in energy policy, as the member for Miranda did at the end of the public interest debate. They will no doubt try to run the proverbial mile from their Federal colleagues, who are still tortured with division about whether to agree with the Liberals and Nationals twentieth energy policy in eight years. Government members in this place will be painting themselves as the heroes of energy reform when they are nothing of the sort. In setting the context for debate on this bill, we also have to examine the discussion that occurred when the Government introduced its Electricity Infrastructure Investment Bill 2020. At the time there was much fanfare about the bill. It was painted as the dawning of the renewable energy revolution in New South Wales.

In short, it was nothing more than an anti-blackout bill, as the Government knew that it had to hedge its bets on ageing power generation and the possible early closure of power stations—hence taking the time to build renewable energy infrastructure. At the time, we heard lots about jobs. The publicity included promises of a "steel mandate" by the then Deputy Premier—a mandate that did not feature in the bill and a mandate that, despite the diligent efforts of Labor in negotiations with the Government, still does not appear in the Act. Of course, Labor fought for improvements to the renewable energy bill, and many were achieved. We fought for local content provisions and were successful in part, securing the Renewable Energy Sector Board that is tasked with providing guidance to the Government on how it can maximise local content in the provision of renewable energy infrastructure.

As I said, the Government would not go so far as to implement the steel mandate it promised, but Labor forced it to this point. The board is co-chaired by Daniel Walton from the Australian Workers Union and Craig Memery from the Public Interest Advocacy Centre. They are busy doing good work, seeking to determine supply chains, work health and safety, and job opportunities, all the while having in mind existing trade law. In its second report to the Minister the board noted that there was great work underway. I would like to know when this work will be available and when the Minister will make the various reports public. Labor also had to push to have workers in the industries that are set to change provided with support. While the then Premier claimed at the time that she would be inclusive of all corners of the State, the original bill did the opposite: It ignored the Illawarra, the Hunter and the Central West regions.

Labor argued, ultimately successfully, that the large investments in transmission lines in all those areas meant that they should be part of the renewable energy infrastructure. We have had the Illawarra and the Hunter included as renewable energy zones. Labor also tried to include the Central West but it was resisted by the now Deputy Premier, the member for Bathurst, who did not want Lithgow and surrounds to be part of the energy future of New South Wales despite energy being central to its past and its present. Perhaps that reflects the current leadership's views on matters relating to energy and climate change. Perhaps someone should ask why the now Deputy Premier, and member for Bathurst is so strongly resistant.

But I guess that is The Nationals' energy policy vision of net zero: to prioritise a net increase in job and investment opportunities in regional New South Wales while delivering areas like the Illawarra, the Hunter and the Central West zero. I repeat this story because it provides important context for this bill. It is a story of negotiations and discussions occurring behind the headlines. Minister Kean is keen on selling himself as the very model of the modern Liberal, embracing climate action and renewable energy. But for all the hot air there is little delivery and, when it comes to reducing emissions and sustaining and creating jobs, delivery is what matters. That brings me to an important part of the bill before the House regarding the Illawarra. Since the 2016 by-election, we have been working with stakeholders and industry in the Illawarra to increase opportunities and integrate the Illawarra into the new energy supply chain for long-term employment growth by transforming existing heavy industry.

It is something that the region had already been working on with the South Coast Labour Council, the former Labor Government and others. South Coast Labour Council Secretary Arthur Rorris has been a strong proponent. In 2011 the initiative was cut by the incoming Liberal‑Nationals Government. Over the past couple of years we have relaunched as Recharge Illawarra, which is a group of local unions, business, industry, educators and researchers who are working together to promote opportunities for our region. It is part of the reason I am so determined to play a role and secure a better deal for Illawarra workers from the renewable energy infrastructure bill. With the high-quality steel we produce in the Illawarra, we should not be watching ships arrive at Port Kembla filled with wind turbine towers made overseas, only to be trucked past the steelworks for installation. Most people would be stunned to learn that there is virtually no New South Wales produced steel in New South Wales wind farms or solar farms. Let that undeniable fact sink in: There is virtually no New South Wales produced steel in New South Wales renewable energy projects. It is not good enough. I would go so far as to say that it is unacceptable.

In trying to address this, I acknowledge that BlueScope Steel has made some funding and space available at the steelworks to support investment in the fabrication of wind turbine components. It is not the only Illawarra‑based organisation involved in renewable energy and wind turbines. David Brown Santasalo at Bulli is part of the power generation supply chain. Crane operators in the region are involved in the installation and maintenance of wind turbines. The Illawarra has the capacity and the capability to play a far greater role. While hydrogen is not an emerging technology—it has long been referred to as the fuel of the future—it is an emerging industry in Australia. It is an industry that the Illawarra wants to be part of and must be part of if we are to be successful in New South Wales. However, in the years to come the Illawarra must not be seen as just a consumer of hydrogen once large‑scale green steel production is perfected. The Illawarra is on the spine of the Eastern Gas Pipeline and should be part of the entire hydrogen supply chain and ecosystem.

This bill takes an important step in getting to that point. It changes the definition of natural gas. Prior to this bill there was a lack of clarity around the definition of natural gas as renewable sources of gas were developed. It is interesting that this bill has taken so long to be brought before the House, given that in late 2019 the Government already claimed to have a goal of requiring 10 per cent of the State's gas to come from green hydrogen by 2030. So it claims to have had a commitment for some time, yet it is only introducing amendments to the legislative framework now—some three years later—that allow that commitment to be achieved. It is another case of making announcements for the publicity with little follow-through when it comes to energy initiatives in New South Wales. Nonetheless, Labor supports this change—it is a case of better late than never.

The fact that the former Berejiklian Government now Perrottet Government has been all announcements and slow to follow through is becoming the story of hydrogen in New South Wales. We cannot allow this to continue and I will take every opportunity to push the Government and others on this matter. Announcements without follow-through are not going to deliver the change that people and industry want and expect from government. It is not going to deliver the jobs that regions such as the Illawarra and the Hunter demand. While a small contribution to a hydrogen refuelling station has been secured for Port Kembla, the Government has not been setting a cracking pace when it comes to supporting other hydrogen initiatives.

In March this year—more than 220 days ago—and with much fanfare, a commitment of $70 million was made to support the development of a hydrogen industry in the Hunter and the Illawarra. It was welcomed by both regions, with the expectation that there would be a speedy call for funding and projects would be underway quickly. After all, most other Australian States already had projects underway with respect to hydrogen and interest in the sector was building globally. New South Wales was late to the party on this and I note that, while a Hydrogen Strategy for the State was announced last week, we were the last State to deliver one. Yet here we are, more than 220 days later, and not a cent of the $70 million announced multiple times has been committed to actual projects—not one cent. There is a new website of course—no announcement or action today would be complete without a new website—but, despite a range of interested parties putting forward suggestions, no actual projects are being delivered yet.

Extension of time

In the Illawarra we put forward a detailed road map for the development of an industry that would put the Illawarra at the heart of hydrogen supply and demand. We put forward ideas around workforce development, development of generation technologies, end‑use options to progressively grow supply and also ideas around the development of the pipeline and the related supply chain in the region. We want to be, and will be, a one-stop shop for hydrogen. We accept that we might not have things exactly right. We are willing to work with the Government to help achieve its policy objectives while helping to deliver for our region, but it seems that an overly cautious approach has taken hold. []

I think it is important for the Government and its public servants to remember that it should be working with all parts and all representatives in a region if it intends to build an industry. Picking and choosing those who are involved is short sighted and should be called out for what it is. The Government also needs to accept that occasionally some of the projects will not deliver the results that might be expected. That is part of the risk of building a new industry from the ground up. While the bill is a step in the right direction, we would be helped a great deal more if the Government stuck to its existing commitments.

The Economist

Today the global hydrogen business is small. Around 90 million tonnes is produced with revenue of around $150 billion a year according to . In order for it to play a role to decarbonise sectors like steel and energy supply and aluminium smelting, it needs to dramatically reduce in price. The accepted industry standard is around $US2 per kilogram. That is going to take a lot of work, but just reducing the cost of running an electrolyser is not the only thing that will need to be done. Supply chains must be built. Safe integration of the technology must be undertaken. A skilled workforce needs to be created. They are some of the small steps that need to be taken, such as those in the bill before the House.

We also need to consider other regulatory elements and the skill set of other regulatory bodies to make sure they are also prepared to take on the task of building an emerging industry. If we are to become the hydrogen superpower the Minister says he is so fond of seeing, it needs to be backed up by a lot of hard work to develop a supportive regulatory regime and a receptive investment framework. Supply can be built; it is largely infrastructure with technological improvement through time. But supply does not create its own demand. Work needs to be done on that side of the equation, and that is why I propose that the free Gong Shuttle in Wollongong is the perfect vehicle to rev up demand for hydrogen in the transport sector.

Electric buses may be suitable in some environments but perhaps not if your bus has to be on the road for 16 hours a day. Last week I put forward a suggestion for a locally manufactured hydrogen bus trial for the Gong Shuttle and, pleasingly, I report to the House that Wollongong is on board. Interestingly, Transport for NSW claims that it lacks a suitable partner, despite my own discussions. Perhaps Transport for NSW was not as keen on a locally produced bus and instead had an imported option in mind, hoping to save a few dollars along the way. We must remember that if the full jobs dividend of developing a new industry is to be realised, we cannot take the easy roads and just import technology platforms, particularly if we are already producing them in this State. Trucks, trains, agricultural vehicles, factory vehicles, mining equipment and delivery vehicles are just some of the platforms that could provide for an early uptake of hydrogen as a fuel.

It is going to take a lot of work to build a hydrogen industry in New South Wales. It is a substantial undertaking, with potentially massive benefits and with energy-hungry trading partners such as those we already have long-established trade relationships with to sell our coal an important source of future demand. The amendments to the Gas Supply Act in the bill are important, but we need to consider, develop and build a regulatory structure around hydrogen that supports our aspirations. We need to equip agencies with the means and, at times, the flexibility to support investment. We have heard a lot of hot air from the Government to date. Big announcements are one thing, but it is the follow‑through that is going to support industry development and create jobs across the regions of New South Wales.

Labor supports the bill and will continue to hold the Government to its commitments with respect to energy and climate change initiatives because, as I said earlier, announcements without delivery will not deliver lower emissions or sustain and create jobs. I appreciate the opportunity to make a contribution to the debate remotely from what should be the hydrogen capital of New South Wales—Wollongong and the Illawarra.

Mr CHRISTOPHER GULAPTIS (Clarence) (17:53:23):

I am pleased to support the Energy Legislation Amendment Bill 2021. As Parliamentary Secretary for Agriculture and Forestry, I support the amendments made to the Forestry Act 2012. The New South Wales Government has a vision to deliver some of the cheapest, most reliable and cleanest energy in the world. That is the vision set out under the NSW Electricity Infrastructure Roadmap by the Minister for Energy and Environment last year. I am pleased to see that the amending bill will continue the Government's commitment to making sure that we do this at the lowest cost and in places that work for our regional and rural communities.

The bill will unlock opportunities for the development of renewable generation and storage near available transmission assets that are located within State forest softwood plantations. The development of those electricity projects will deliver cheap, sustainable power whilst benefiting the economic development of regional communities. Wind farms have been developed within softwood forests internationally for over 20 years, including in Canada, Sweden, Germany and the United Kingdom. In Queensland the 1,200 megawatt Forest Wind project is approved and construction is expected to begin next year. In Victoria two forest‑based wind farm projects totalling 1,100 megawatts are at the development application stage.

In New South Wales we want to ensure that similar opportunities can become available in our State forest softwood plantation areas. Those developments can assist the State in its transition to low‑cost renewable energy and bring investment to regional New South Wales. They will also be consistent with the Government's implementation of the Electricity Infrastructure Roadmap, which will provide support for the private sector to bring 12 gigawatts of renewable energy projects. That is consistent with the New South Wales Government's commitment to reduce emissions by 50 per cent by 2030.

The projects will be located across five renewable energy zones and in areas outside the zones with spare transmission capacity. The Forestry Corporation has identified locations in softwood plantations that are near quality wind resources and available transmission assets with a potential generating capacity of one gigawatt. An unsolicited commercial interest suggests that the total opportunity could be substantially bigger. At current market rates, the Forestry Corporation would earn about $5 million in annual lease payments for every gigawatt of capacity developed. That potential opportunity, if acted on, would materially add to the value of State forest assets and diversify their revenue streams.

The Forestry Corporation of NSW will implement safeguards to minimise the impact on forestry operations. That could include requiring developers to offset land losses in State forests at their own expense. Overall, the change will unlock a new revenue stream for the Forestry Corporation of NSW without impacting its original objective or purpose. While the changes provide new opportunities for renewable energy infrastructure projects in State forests, developers and proponents will be required to obtain relevant approvals under the existing planning approval process. For example, at the local level a developer must consider the environmental impact; noise, landscape and visual impacts; traffic and transport issues; hazards and risks; heritage; water and soil impacts; and waste management. Community consultation must be undertaken. The planning process includes providing a clear framework for the assessment of a large-scale wind energy development proposal that is a development of State significance. The involvement of community, industry and regulators is key in the assessment process. I commend the bill to the House.

Ms TANIA MIHAILUK (Bankstown) (17:57:59):

As stated in the second reading speech delivered on Minister Kean's behalf by the member for North Shore, the bill makes a range of amendments to the following Acts across the Energy portfolio: the Electricity Supply Act 1995, the Energy and Utilities Administration Act 1987, the Forestry Act 2012, the Gas Supply Act 1996 and the Pipelines Act 1967. The specific purpose of the amendments to those energy Acts is to improve administrative processes. The amendments reflect alternative sources of energy, including hydrogen and biogas, being introduced into the New South Wales energy supply and enables New South Wales to opt in to the national Regulatory Framework for Stand-Alone Power Systems [SAPS] while enhancing cybersecurity protections for the energy system. The bill also enables renewable energy projects in the State forest softwood plantations, which I will touch on in a moment.

In broad terms, the bill seeks to support the New South Wales Government's recently released Hydrogen Strategy, which the Opposition welcomes in principle. However, I note that the Government is playing catch-up with its policy, with Queensland, South Australia and Western Australia having already released their plans in 2019, and Victoria releasing its plan in March this year.

What I will say about the Government's hydrogen plan is that there are some very big numbers being thrown around with its announcement: the attraction of $80 billion of investment by 2050, the contribution of $600 million to the State economy by 2030 and the provision of $3 billion of investment incentives by the Government. They are very big numbers indeed. I hope these figures are accurate and are not at all inflated by Minister Kean's obsessive pursuit of big headlines and attention-seeking news grabs. For instance, what are the specifics of the $3 billion worth of incentives that Minister Kean has spoken of? What will be the oversight regime for these incentives? I suggest it is a very brave government that hands Minister Kean $3 billion to throw around. As the Deputy Premier stated in the Government's media release about the policy, hydrogen energy is a huge opportunity for regional New South Wales. The Deputy Premier went further in his remarks to state:

Places like Parkes, the Illawarra, and the Upper Hunter are uniquely placed to take advantage of these opportunities, with existing supply lines, access to transport links and a skilled workforce ready to make regional NSW a leader in hydrogen technology.

The Deputy Premier makes quite an interesting point, considering it was Labor last year that moved the required amendments to the Electricity Infrastructure Investment Bill 2020 to ensure that the Illawarra and the Hunter were included in the renewable energy zones that would allow them to capitalise on the green energy jobs that the Government is now taking credit for. I would like to think that the very large numbers being spruiked in the Government's announcement are very real and not designed to give false hope to our regional communities, which will be staking their very real businesses and livelihoods on these plans and numbers. I turn now to my earlier point about the bill enabling renewable energy projects in State forest's softwood plantations. Schedule 3 to the bill will amend the Forestry Act 2012 to enable the development of infrastructure for the generation and storage of energy from renewable sources located near available transmission assets within the State forests' softwood plantations. In her second reading speech the member for North Shore stressed that the proposed changes will:

… only permit infrastructure for renewable energy projects to be located in State forests' softwood plantations. The changes will not permit these projects to be located in State forest areas that contain native forests. This change will also not remove any approvals or requirements that energy projects are required to adhere to under the existing planning process.

The Sunday Telegraph

I sincerely hope the safeguards around approvals and requirements that are currently in place are not reduced to accommodate the changes proposed in the bill. I have received advice from several forestry industry stakeholders, including Timber NSW, which has raised concerns regarding the potential loss of forest plantation areas due to the anticipated installation of renewable energy infrastructure. The preservation of current timber harvesting volumes is a very important issue, particularly in light of the current timber shortage, which has been exacerbated by the 2020 bushfires and the recent boom in home construction. I recently highlighted that issue in an article in in which I exposed the current timber shortage by revealing that current builders like Vishu Moondra and his wife, Aditi Gupta, who I spoke with on their building site in Rouse Hill, are battling price rises of 30 per cent and contending with delays for materials of up to 13 weeks. Current figures from Master Builders Australia and the Australian Forest Products Association show that in the coming years New South Wales is facing a shortfall of 50,000 timber frames.

The Daily Telegraph

The timber shortage is also having very concerning effects on the broader timber industry. The lack of timber supply is affecting the viability of local timber mills and their workers. On 8 October I referenced this troubling trend in an op-ed for when I wrote about how the timber regions of the Illawarra and Tumut, where the current shortage has caused the reduction of workers' shifts and hours, has caused some workers to leave town. As I said in that piece, this produces knock-on effects for those left behind, like the midwife forced to commute from Tumut to Wagga Wagga to find work, or the bright high school student unable to study selective subjects like economics and chemistry due to a shortage of students.

These issues were discussed by several witnesses who provided evidence to the recent upper House inquiry into the long-term sustainability, and future of the timber and forest products industry. I thank my colleagues the Hon. Peter Primrose and the Hon. Mick Veitch for their work on that inquiry. I also thank Timber NSW CEO Maree McCaskill and Australian Forest Products Association NSW CEO Sue Grau for their helpful contribution to the inquiry. I also thank Construction, Forestry, Maritime, Mining and Energy Union New South Wales branch District Assistant Secretary Alison Rudman, CFMEU national policy research officer Travis Wacey, as well as CFMEU delegates Sharon Musson, David Webb and Peter Webb, who provided such honest and sometimes heartbreaking evidence of the reality of the current timber shortage as experienced on the front line of our regional communities. I also acknowledge the work of the Australian Workers Union, and acknowledge its championing of the economic and employment opportunities of the hydrogen industry.

I foreshadow that the Opposition will consider moving amendments in the upper House to ensure that there will be no net loss to softwood timber plantation areas affected by the bill in the interests of preserving current volumes of timber harvesting. I respectfully ask the Deputy Premier to advise the House of the consultation on the bill that he has undertaken with forestry industry stakeholders to ensure that he has considered all the ramifications that it would have on the Electricity Supply Act. I commend the bill to the House.

Mr ADAM CROUCH (Terrigal) (18:07:00):

I support the Energy Legislation Amendment Bill 2021. I commend the Minister for this excellent legislation, as well as his staff, who have put so much hard work into the bill. I am pleased to speak about how the bill will help to pave the way to grow the State's hydrogen industry, which is an issue that is very close to my heart. Minister Kean went to the Central Coast to visit a company called Star Scientific and met with stakeholders. It is working on a really interesting project with hydrogen to create energy for industry. We will see some very exciting stuff from Star Scientific. The recent announcement of the New South Wales hydrogen plan is very exciting. Hydrogen will play a massive role in the State's future economic prosperity and help to meet the Government's goal of achieving net zero emissions by 2050.

Hydrogen energy can reduce carbon emissions in hard-to-abate sectors, improve air quality, grow and diversify the economy, create new jobs, improve the State's energy security, and provide businesses with more choices to increase revenue and reduce emissions. Earlier in the second reading debate the member for Miranda said something very similar with regard to hydrogen energy. Hydrogen energy can help to decarbonise the State's gas networks, steel production at Port Kembla, industrial processes at Port Kembla like ammonia production, the State's heavy transport fleet, shipping and aviation. I have seen firsthand the unique and exciting developments of Star Scientific on the Central Coast, which is using a catalyst to create energy through hydrogen in a unique way. I believe it has a world patent on the process. It is exciting to see new technology emerging on the Central Coast.

I pay tribute to the team at Star Scientific and thank them for the time they took to show the Minister and me around the facility and how to engage with industry right across the Central Coast. As I said, I am sure there are exciting times ahead for Star Scientific. I congratulate the team on their work and thank them for their generosity and time. I must say it was really interesting to see the way that work is progressing with hydrogen through Star Scientific. Hydrogen will provide new opportunities for regional industries, as I have outlined, and help transition regions such as the Hunter, Illawarra and Central Coast to thrive in a net zero economy. Once established, hydrogen is also expected to create an important export industry for New South Wales, as global markets strive to reduce emissions. The bill will support the developing hydrogen industry and address the uncertainty over how hydrogen should be regulated in New South Wales.

The NSW Hydrogen Strategy announced last Wednesday will provide up to $3 billion in incentives to develop a green hydrogen industry in New South Wales. I cannot understate the importance of that $3 billion in incentives. It includes investing $70 million in hydrogen hubs in the Illawarra and Hunter regions, exemptions from electricity network and government scheme charges, a hydrogen expansion to the Energy Security Safeguard and rolling out hydrogen refuelling stations. Hydrogen is being embraced by the automobile industry and, again, by Star Scientific. Looking at the way it creates energy using hydrogen through a different medium was really interesting stuff. I highlight the great work being done by the Star Scientific team on the Central Coast and their willingness to work with the New South Wales Government on exciting emerging technology revolving around hydrogen. It is right around the Central Coast and it is very exciting.

The measures aim to support an industry that could add $26 billion per year nationally in additional GDP and 16,900 jobs by 2050. That strategy will establish New South Wales as a green hydrogen and renewable energy superpower. There are very exciting times ahead. Simply put, it means more jobs and more investment in the regions and cleaner, cheaper and reliable energy to power the economy. I have no doubt that Star Scientific will lead the way with its hydrogen technology. Part of supporting the developing hydrogen industry is ensuring that it is clearly defined in the gas laws and the licensing and safety frameworks are streamlined. I highlight the team at Star Scientific again. They specifically raised that issue with the Minister. It is great to see the outcomes of that engagement with industry to provide better outcomes for business and industry moving forward with hydrogen technology.

I am pleased to see that the bill will provide the ability to define hydrogen and other renewable gases and also remove burdensome, unnecessary red tape. Under the regulatory framework, a network operator who distributes natural gas and natural gas hydrogen blends must hold a distributor's licence and reticulator's authorisation. Currently, there are several project proposals that seek to inject hydrogen and other renewable gases into the gas distribution network. That reform will support those projects by removing the duplicative requirements placed on the gas network operator. Importantly, while the change removes duplicative licensing requirements, it does not alter the safety and technical requirements that networks must meet to inject renewable gases into the networks themselves.

The Government's Hydrogen Strategy will transform the State into a green hydrogen superpower. The bill includes the first of several reforms to reduce the cost of producing hydrogen in New South Wales by up to $5.80 per kilogram. One of the major costs in producing green hydrogen is the cost of electricity. To reduce those costs, the Government will exempt green hydrogen production from a range of charges and scheme costs, which is an excellent initiative. The bill will enable the Government to help industry close the commercial gap between hydrogen and existing fuels at this early stage of development. That will help kick-start the New South Wales hydrogen industry and position our State to seize the hydrogen opportunity for regional economies. I hope that will be the case on the Central Coast through companies like Star Scientific.

The concessions introduced in the bill are expected to significantly reduce the cost of hydrogen and bring hydrogen prices within reach of the $2 per kilogram mark. That figure is the cost the Australian Government has identified in its Technology Investment Roadmap for when hydrogen will be cost competitive with other fuels and enable hydrogen to decarbonise the hardest to abate sectors of the economy. That will position New South Wales to compete in the all-important international export market. It is a fantastic piece of legislation. I acknowledge the contributions of the staff of the department—Collette Grigg, Jason Scattolin and Andrew Lewis—and Dimitry Palmer, Ava Hancock and Ben Coles from the Minister's office and thank them for their hard work. They do a lot of work behind the scenes at both department and ministerial office levels.

It is an exciting time moving forward for the industry. We have businesses like Star Scientific on the Central Coast that are willing to embrace this opportunity and work with the Government to help provide better technologies and outcomes for industries on the Central Coast as well as nationally and globally. The legislation encapsulates the exciting times ahead for industries associated with hydrogen. From what I have seen firsthand at Star Scientific, it is groundbreaking stuff and exciting indeed to know that we are removing the roadblocks and red tape and are actively encouraging industries with huge amounts of financial support to lead the way with hydrogen technology in New South Wales. I only see bright things ahead for companies like Star Scientific and others in New South Wales that are working together to improve hydrogen technology. Thank you to the staff, Minister's office and department for working on the amendment. It is an exciting time ahead.

I commend the Minister for his work. It was a pleasure having him on the coast and to see him listening firsthand to industry providing its feedback. To see that feedback replicated and put into improving legislation shows that this is a Government that listens and takes on board industry and community feedback to ensure the best outcomes are delivered for everybody in New South Wales. I commend the bill to the House and the Minister for the excellent amendment.

Ms KATE WASHINGTON (Port Stephens) (18:17:10):

Via video link: I contribute to debate on the Energy Legislation Amendment Bill 2021 and note Labor's overall support for the changes comprised in the legislation. Energy policy is one of the defining issues of our time. While we debate sensible changes in this place, I note that in Canberra the National Party continues to drag its heels on even accepting that there is a reason to change how we use and export energy. There has been lots of debate in the media about whether the Prime Minister should attend the upcoming conference in Glasgow, with even the Queen having a crack at world leaders who do not turn up or fail to act on their international commitments. But it is increasingly clear that Scott Morrison does not set the energy and environment policy for this country; Barnaby Joyce does. I suggest that it would be more honest for the Prime Minister to send his deputy to Glasgow so the world can meet the real decision-maker in Canberra.

What is happening in Canberra is perfectly relevant to what we are discussing tonight because many of the changes proposed in the bill are made in anticipation of changes that are necessary at a Federal level. Given the embarrassing and irresponsible position that the Morrison Government has placed Australia in internationally as an environmental laggard, it is very hard to have hope that the changes we are discussing tonight will be given effect by a Federal government that clearly has no will to act in this area. My home in the Hunter is at the forefront of the energy debate. With steel, coal, ammonia and aluminium—whether it is energy in its raw form or embedded in materials—we make it in the Hunter. I want the Hunter to remain a powerhouse for New South Wales and the world, but it is clear that the world is changing and that it too must change. Countries that buy our coal and other products are changing their views about what they will buy in the future, and we need to keep up with them. It is no good making the best VHS tapes in the world if everyone is watching Netflix.

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