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Newcastle Herald
Newcastle Herald
National
Michael Parris

Labor confirms $100m hydrogen hub spend

Pat Conroy during question time in Canberra last month. Picture by Sitthixay Ditthavong

Shortland MP Pat Conroy says the government is committed to spending $100 million on a proposed hydrogen manufacturing and export hub in Newcastle.

The previous government announced in the March budget that it would spend $100 million to "support pre-final investment decision activities and early works to make the port of Newcastle hydrogen ready".

The money was to come from former deputy prime minister Barnaby Joyce's $7.1 billion campaign war chest known as the Energy Security and Regional Development Plan (ESRDP).

The Coalition promised another $82 million from the Department of Industry, Science, Energy and Resources budget for two hydrogen manufacturing projects in Newcastle, one a joint venture between the port and Macquarie Capital and the other led by Origin Energy.

Mr Conroy suggested in comments to the Newcastle Herald in March that Labor would support the combined $182 million spending, but the ESRDP portion of the funding has appeared in doubt in recent months as the Albanese government wrestled with a worsening economy and record debt.

The government's "rorts and waste" audit is examining the previous regime's spending programs, and Mr Albanese said last week that the budget would "see some of the funds that were just on the whim of a minister wiped out as part of the savings that are required to help send the budget in a better direction than the way it was headed".

But, six weeks out from the government's first budget on October 25, Labor has committed publicly to all the hydrogen funding in Newcastle.

"Labor remains committed to delivering the $100 million for the Port of Newcastle hydrogen hub," Mr Conroy said on Wednesday. "We will be delivering on all of the local commitments we took to the election."

Newcastle MP Sharon Claydon said it was "questionable" whether funds "allegedly allocated" to projects by the former government had been appropriated.

"Labor made explicit commitments for Newcastle in the election, including $16 million for a new energy research centre at the University of Newcastle, all of which will be honoured in the upcoming October 25 budget," Ms Claydon said.

"Hydrogen is an important part of our region's future, which is why Labor has also committed to investing $82 million for two critical hydrogen projects in Newcastle."

The government has said it will honour its commitments to upgrade Mandalong Road at Morisset, build a new $55 million terminal at Newcastle Airport, fully fund Hunter GP Access and plan for a high-speed rail network.

The previous government was to commit $250 million to a port container terminal but cancelled that announcement at the last minute.

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