CATHY VAN EXTEL: Australia will export its first shipment of liquefied hydrogen to Japan under a pilot program the Federal Government hopes will lead to the creation of a new energy export industry. The world's first specialist carrier of liquefied hydrogen, Japan's Suiso Frontier will arrive in Victoria today as part of the Hydrogen Energy Supply Chain pilot. But, as it prepares to launch it's, coal that will be providing the energy for now with carbon capture and storage used to lower emissions. Angus Taylor is the Minister for Industry, Energy and Emissions Reduction. Welcome to RN Breakfast for the year.

ANGUS TAYLOR: Thanks for having me, Cathy.

CATHY VAN EXTEL: Now, this is being framed as the potential start of a new export industry. Just how significant is the technical step forward here, the shipping of liquid hydrogen?

ANGUS TAYLOR: Well, it's very significant, and not just for Australia. It's significant globally because it's the first shipment of liquefied hydrogen in the world. We led the way and led the way with commodity, agricultural and resource exports, seaborne exports for a long, long time. We're doing exactly the same with hydrogen, a world beating exercise by Australians. Importantly, of course, this is the beginning of a trade which will be crucial for the world in bringing down emissions, in making sure that our energy systems adapt and have what they require in our industrial and agricultural systems, too, because hydrogen plays a role not just in our energy systems, but a crucial role in providing fertiliser, in making sure that our transport systems can work. So we really do see this as the beginning of a crucial industry for Australia and the world.

CATHY VAN EXTEL: It's important to point out this is what's referred to as brown hydrogen, not green hydrogen. It's being made from coal at this point. How is it a win for green hydrogen?

ANGUS TAYLOR: Well, it's also linked to the carbon net project. The intention here is that CO2 will be sequestered, but the difficult issue here for hydrogen is how to ship it around the world and indeed around a nation. It is very, very challenging, as it was for LNG. Australia played a lead role in solving that problem for LNG, and we're doing exactly the same here with hydrogen, but importantly, working with our Japanese customers, as we have in the past, as we've built these supply chains. Japan - Japanese companies and the Japanese Government are very closely involved in this project, and they're making significant commitments, as we are, and we're announcing those today, another 7.5 million for the hydrogen project and 20 million dollars for the carbon net piece of the project, which is the sequestration part.

CATHY VAN EXTEL: So you're making ground in that area, technical area, in terms of shipping the liquid hydrogen, in terms of the Latrobe Valley project, can this project ever become totally green?

ANGUS TAYLOR: Well, sequestration, carbon sequestration in the production of hydrogen is well advanced, not just in Australia, but around the world.

CATHY VAN EXTEL: Not just in sequestration, in terms of the energy used to create the hydrogen itself?

ANGUS TAYLOR: Well, yes, it can be very substantial. I mean, we expect the project to produce 225,000 tonnes of clean hydrogen each year in the commercial space.

CATHY VAN EXTEL: Yes, but Instead of using coal, can you use green energy to create this hydrogen in Latrobe Valley.

ANGUS TAYLOR: Well, we can create green energy in many different places in Australia, including the Latrobe Valley, but we can also use sequestration to produce blue hydrogen, as it's called. So there's a range of different ways of producing clean hydrogen. We're not going to get ideological about it. We want clean hydrogen. We're doing the work on making sure we're certifying the hydrogen so we know it's clean and whether it's in the Latrobe Valley or it's in Queensland or in the Pilbara, there are a range of places we can do this. But the Latrobe Valley is a very good option because it has a range of different fuel sources, and of course, we're establishing the infrastructure for export.

CATHY VAN EXTEL: Could we go to the issue of fracking? Because a little bit later in the programme, we're going to be looking at the issue of a battle of fracking in the Beetaloo Basin in the Northern Territory. Today's announcement is just a pilot, but there's a big push to expand fracking in the Northern Territory and WA in the Kimberley, which is really causing some concern, particularly amongst First Nations people and environmentalists. When we look at what we're talking about here with the development now with hydrogen, is this sort of one step forward and three steps back for emissions when you're also pushing ahead with fracking in these two major areas?

ANGUS TAYLOR: Cathy, what counts at the end of the day is whether we're bringing down emissions. Now, the debate can get very ideological. People like one sort of energy and dislike another sort. Frankly, the measurement that we apply to this and other projects is, are we as a nation doing our bit to bring down emissions? Are we doing our bit to develop technologies and supply chains that can bring it down emissions around the world? There's a range of different technologies that can do that. Now, when it comes to gas, the Beetaloo Basin, gas is an important part of the mix in bringing down emissions. It will evolve and the production of hydrogen and clean hydrogen from gas is well advanced, and it will remain part of our energy mix for many years to come but our mix will evolve and what we're doing here in the Latrobe Valley is just an illustration of exactly that.

CATHY VAN EXTEL: Minister, let's just go to another area now. WA last night announced it will delay the opening of its borders to quarantine free travel, that was meant to start next month, early next month. Was that the right decision?

ANGUS TAYLOR: Well, WA has done well to keep Australians safe, to keep the economy moving. Vaccination rates are very high there now as they are around Australia, and I can understand Western Australians are disappointed with the situation. I think it's reasonable to ask if not now, when will WA open up? It will need to open up, just as the rest of Australia is doing so. And I can understand the frustration of Western Australians on this, but we'll continue to support them to open up as the rest of the country is doing and to get ourselves back to where we need to be as quickly as possible.

CATHY VAN EXTEL: Is the Commonwealth disappointed with this decision?

ANGUS TAYLOR: Well, I think Western Australians are understandably disappointed with the situation, but ultimately, we'll support them in every way we can to open up as quickly as possible.

CATHY VAN EXTEL: You're the Industry Minister as well as the Energy Minister. The peak body for pathology labs in Australia says that 2 million rapid antigen tests could be made here every week using local manufacturing. Is the Federal Government looking at how to do that?

ANGUS TAYLOR: Yeah, I mean, there is already rapid antigen testing being produced in Australia. We'd like to see more.

CATHY VAN EXTEL: Yes, but a lot of it's going overseas because the contracts were locked in last year.

ANGUS TAYLOR: Well, and we'd like to see more. I mean, I think that is an important part of what we're seeking to do, just as we've been dealing with the supply chain issues on AdBlue, making sure we can keep our vehicles moving on the road and keep our economy turning over and that's been a big focus over the Christmas period. I mean, obviously globally, there's a shortage of rapid antigen tests. We continue to focus on making sure we get the supply that we need, and that will continue to be a focus for the Government.

CATHY VAN EXTEL: As I understand it, though, some of those manufacturers based here in Australia are frustrated by the lengthy delays in the process of being approved. So while they're able to ship the RATs overseas and are able to provide those tests to other markets, they're unable to provide RATs here where there is such a massive need.

ANGUS TAYLOR: Well, that's a matter for the approval processes, ATAGI and others in the approval process, obviously, TGA. They have to make sure that the product is appropriate for Australia and the Australian market. We rely on them to move as quickly as possible to get those approvals, and we'll continue to work with them to get them done as quickly as we can.

CATHY VAN EXTEL: And how are you working with them to get that set up then?

ANGUS TAYLOR: Well, I mean, that's the job of Greg Hunt, and I know that's a real focus for him. We, obviously, with all these supply chain issues, need to continue to work closely with industry and with regulators to get these approvals done as quickly as we can and make sure that we get ourselves back on our feet and going over the coming months, not just in WA, of course, which we were talking about a moment ago, but right across Australia.

CATHY VAN EXTEL: Minister, thank you for joining us this morning.

ANGUS TAYLOR: Thanks, Cathy.

CATHY VAN EXTEL: Angus Taylor is the Industry, Energy and Emissions Reduction Minister.