Gas Supply and Other Legislation (Hydrogen Industry Development) Amendment Bill 2023
Plain English Summary
Overview
This bill establishes the regulatory framework for Queensland's hydrogen industry by allowing hydrogen and other renewable gases to be transported through pipelines. It amends gas supply and petroleum laws to provide a clear pathway for hydrogen projects, supporting Queensland's goal of becoming a major renewable hydrogen exporter.
Who it affects
Hydrogen industry developers gain regulatory certainty for pipeline projects. Regional communities may see jobs and economic benefits from hydrogen developments across Queensland.
Key changes
- Hydrogen, biomethane and synthetic methane can now be distributed through gas networks
- Pipeline licences can be granted for transporting hydrogen and hydrogen carriers like ammonia
- Safety is now a mandatory consideration when granting pipeline licences
- New requirements for transparency about what substances are transported in pipelines
- Aligns Queensland's framework with national gas regulatory reforms for hydrogen
Bill Story
The journey of this bill through Parliament, including debate and recorded votes.
▸Committee9 May 2023View Hansard
Referred to Transport and Resources Committee
The Transport and Resources Committee examined the Bill over two months, receiving five submissions and holding a public hearing. The committee recommended the Bill be passed, noting broad support from stakeholders for extending Queensland's gas pipeline regulatory framework to cover hydrogen and hydrogen carriers. Key issues examined included land access for pipeline construction, native title protections, and concerns from the Bailai, Gurang, Gooreng Gooreng, Taribelang Bunda First Nations People about insufficient consultation on cultural heritage impacts. LNP members filed a Statement of Reservation expressing concerns about compulsory acquisition processes and the notification process for affected communities.
Key findings (5)
- Four of five submitters broadly supported the Bill's provisions for extending the gas pipeline regulatory framework to hydrogen and hydrogen carriers.
- The Bailai, Gurang, Gooreng Gooreng, Taribelang Bunda First Nations People raised concerns that the government had not consulted them about impacts on their cultural rights before introducing the Bill, despite hydrogen developments being planned in their region.
- The committee found that delegating power to prescribe additional gases by regulation was justified, as new gases may become suitable for distribution as technology develops.
- AgForce raised concerns about privacy protections for primary producers affected by pipeline infrastructure, including noise, biosecurity and animal welfare impacts.
- The Queensland Law Society recommended establishing a framework for granting pipeline licences for water used in hydrogen production, which the department committed to consider in a broader regulatory review.
Recommendations (1)
- The committee recommends the Gas Supply and Other Legislation (Hydrogen Industry Development) Amendment Bill 2023 be passed.
Committee report tabled
▸Second Reading10 Oct 2023View Hansard
▸25 members spoke22 support3 mixed
As Minister for Energy, moved the second reading and delivered the reply, championing the bill as essential for Queensland's green hydrogen industry and its role in decarbonising transport and hard-to-abate sectors.
“Queensland's green hydrogen industry is the next frontier in a world hungry for renewables and it is our greatest climate, jobs and economic opportunity in a generation.”— 2023-10-10View Hansard
As shadow minister for energy, stated the LNP broadly supports the intent of the bill while raising concerns about compulsory acquisition processes, notification of affected communities, and the need for investment certainty.
“The LNP broadly supports the intent of the bill; however, as noted in the LNP's statement of reservation to the committee report, there are some concerns we wish to ensure are put on the public record.”— 2023-10-10View Hansard
As committee chair, supported the bill as an important step towards regulating hydrogen pipelines, highlighting the economic potential of hydrogen and the Queensland Energy and Jobs Plan.
“Modelling suggests hydrogen could be worth about $33 billion to our economy within 20 years. Effective regulation of hydrogen development and use is essential to the healthy growth of the industry.”— 2023-10-10View Hansard
Supported the bill as a committee member, comparing the hydrogen opportunity to the Bowen Basin development, while stressing the importance of social licence, transparent landholder consultation, and learning from past gas industry mistakes.
“If it succeeds, the green hydrogen industry could have a similar impact on Queensland's prosperity as the development of the Bowen Basin brought us in the 1970s.”— 2023-10-10View Hansard
Supported the bill, highlighting that the first hydrogen refuelling station was in her electorate and the importance of hydrogen for decarbonising heavy haulage and creating green-collar jobs.
“Hydrogen cannot only help to limit emissions in hard-to-abate sectors such as heavy haulage and manufacturing but also will play an important role in ensuring Queensland prospers on the transition to net zero.”— 2023-10-10View Hansard
Supported the bill as largely uncontroversial, while emphasising the need for careful handling of compulsory acquisitions, biosecurity on farming properties, open notification processes, and competitive regulatory frameworks.
“The LNP—and me personally—are very supportive of developing the state's energy resources, including hydrogen and that industry, and making sure we are well placed to take it forward if it becomes the fuel of choice for users.”— 2023-10-10View Hansard
As hydrogen champion for Townsville, enthusiastically supported the bill, highlighting hydrogen hub developments in Townsville and the Lansdown Eco-Industrial Precinct, and the $70 million federal hydrogen hub grant program.
“I cherish the role as hydrogen champion for Townsville and the greater region.”— 2023-10-10View Hansard
Supported the bill's industry development intent but raised significant concerns about the scale of renewable energy infrastructure required for hydrogen, including 10,000 wind turbines and 2,500 square kilometres of solar farms, and the impacts on farmland and water resources.
“How many jobs might be wiped when you cover 2,500 square kilometres of farmland with solar panels? I ask that as a genuine question into what the comparison in jobs are, because I dare say that there will be a lot of farming jobs lost with that.”— 2023-10-10View Hansard
As Minister for Resources, supported the bill as essential for providing a regulatory pathway for hydrogen pipeline licensing, emphasising safety requirements and the potential for Townsville as a hydrogen export hub.
“Ensuring that we have the right policies in place to enable the development of the hydrogen industry is absolutely essential. As with all industries, the safety of the community and its workers is absolutely paramount.”— 2023-10-10View Hansard
Supported the bill while raising concerns about the lack of First Nations consultation with the Bailai, Gurang, Gooreng Gooreng, Taribelang Bunda people and the need for careful handling of compulsory acquisition powers.
“I want to emphasise that the LNP's response to this bill is not one of opposition but of raising essential issues and concerns. We believe in the potential of this legislation to shape the future of Queensland's energy landscape positively.”— 2023-10-10View Hansard
Supported the bill as assistant minister for hydrogen, highlighting over 50 green hydrogen projects in Queensland, the $33.4 billion economic potential by 2040, and the government's multifaceted approach to accelerating the hydrogen industry.
“Queensland is well on its way to becoming a renewable hydrogen global superpower and this bill is an important next step in that journey.”— 2023-10-10View Hansard
Acknowledged the bill's regulatory objectives but expressed deep scepticism about green hydrogen's commercial viability, citing negligible global production, enormous costs, and safety risks of blending hydrogen into gas networks.
“The practicality and cost issues of hydrogen are such that it is highly unlikely it will ever be the solution to the energy storage conundrum that so many experts are wrestling with today.”— 2023-10-10View Hansard
Supported the bill, explaining the different types of hydrogen (grey, blue, green) and highlighting the potential for green hydrogen in steelmaking and as an export commodity to major trading partners.
“Green hydrogen does not generate any emissions in its entire life cycle as it uses renewable energy in the production process, making it a true source of clean energy.”— 2023-10-10View Hansard
Supported the bill as a pivotal step to facilitate green hydrogen industry and export, but criticised the government for not directing gas corporations to transition, not raising gas royalties, and not prioritising household electrification.
“I make clear at the outset that the Queensland Greens will be supporting this bill because these reforms will allow hydrogen, among other feedstock gases, to make use of the Queensland gas network.”— 2023-10-10View Hansard
As Queensland's hydrogen champion, supported the bill, noting her electorate was the first region to export hydrogen to Japan and highlighting hydrogen bus trials in the Redlands.
“I am very proud that the Redlands has been at the forefront of hydrogen. Many members might not know, but we were the first region to export hydrogen to Japan.”— 2023-10-10View Hansard
Supported the bill while stressing the need for good consultation with farmers and landholders, proper biosecurity management during pipeline construction, and the importance of sustainability and affordability in hydrogen development.
“Agricultural activity can take place with these pipelines and easements as long as companies and the government have meaningful conversations with farmers and landholders to make sure easements and acquisitions are done in a manner such that their farm operations can coexist.”— 2023-10-10View Hansard
Supported the bill, highlighting the Hydrogen Centre of Excellence in her electorate at Beenleigh and the need for an effective regulatory framework for pipeline licensing.
“We understand this is a major, key piece of the infrastructure that is needed for this industry.”— 2023-10-10View Hansard
Supported the bill and hydrogen as part of the energy mix, while arguing nuclear energy should also be pursued and expressing concern about pipeline impacts on primary production land.
“I do not have an issue with hydrogen and believe it should be pursued as part of our energy mix; however, if we are going to embrace hydrogen we should do the same for nuclear energy as a clean, green, plentiful and limitless energy source.”— 2023-10-10View Hansard
Supported the bill as part of the government's Energy and Jobs Plan and Climate Action Plan, contrasting Labor's position on climate action with the LNP's lack of a clear energy policy.
“This bill is setting up Queensland to be a leader in the energy industry of the future.”— 2023-10-10View Hansard
Supported the bill while drawing on her experience with coal seam gas pipelines in her electorate, emphasising the need to use state-owned land before private land, protect farmer privacy and agricultural productivity, and improve the RIDA process.
“We should be using the state owned land and stock routes, which should form part of the infrastructure corridors, before we go onto private land.”— 2023-10-10View Hansard
Supported the bill as part of the Queensland Energy and Jobs Plan, emphasising the role of publicly owned ports and government-owned corporations in driving hydrogen industry development.
“Queensland's green hydrogen industry is in the pipeline right now. It is the greatest opportunity in terms of jobs and action on climate change and provides an export opportunity for a generation.”— 2023-10-10View Hansard
Supported the bill, detailing the technical amendments to the Gas Supply Act and Petroleum and Gas Act, and highlighting global demand for hydrogen from Japan, South Korea and the European Union.
“There is no doubt that hydrogen is seen as a game changer for cutting emissions in hard-to-abate sectors. Countries all around the world are setting ambitious targets for hydrogen use and production.”— 2023-10-10View Hansard
Supported the bill as important for providing a stable industrial framework for hydrogen production, transportation and export, emphasising that East Asian trading partners seek well-regulated partners.
“This bill is really important to providing a stable industrial framework of regulation to allow those who wish to go into the industrial production of hydrogen to have a clear pathway for the transportation and storage of hydrogen.”— 2023-10-10View Hansard
Supported the bill, highlighting the potential for Central Queensland as a hydrogen hub with its solar and wind resources, water supply from the Fitzroy Basin, and the deep water port at Gladstone.
“Central Queensland will continue to grow as an industrial and agricultural powerhouse supplied by renewable energy and building hydrogen electrolysers for the world through the Energy and Jobs Plan.”— 2023-10-10View Hansard
Expressed scepticism about hydrogen as part of a reckless charge to a low-carbon economy, criticised the government for failing to implement a gas reserve policy, and lamented missed royalty opportunities compared to Qatar.
“I still raise one eyebrow about it and the whole industry is part of this charge, much of it a reckless charge, to a low-carbon economy.”— 2023-10-10View Hansard
Assent date: 19 October 2023