Energy giant earmarks $4.4b for Australia

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A world leader in wind power and green hydrogen has earmarked $4.4 billion for Australia.

Lured by new climate laws that will require billions of dollars of private capital to modernise a coal-dependent electricity grid, Europe's largest electricity company Iberdrola is looking to expand its footprint.

Chair and CEO Ignacio Galan has met Prime Minister Anthony Albanese and Energy and Climate Change Minister Chris Bowen, and is also wooing state leaders and local investment partners.

"The full ratification of Australia's decarbonisation targets will align federal policies with the ambitions already shown by most states, and the commitment shown by Australian companies and wider society," Mr Galan said.

Already running Europe's largest industrial green hydrogen plant in Spain, he said Australia could consolidate its reputation as one of the largest global energy exporters by producing green hydrogen.

Andrew "Twiggy" Forrest also has his sights set on green hydrogen and green steel, and has the Sun Cable project underway with fellow Australian billionaire Mike Cannon-Brookes to harness mass-scale solar power.

"There is huge global demand from industry for new climate solutions such as green hydrogen, green ammonia and green steel," Mr Galan said.

Under the new federal regime, he expected Australia to quickly lead the way in new clean economy technologies and sees "massive potential" in green hydrogen.

The clean energy company already has a footprint in Australia after buying renewable energy utility Infigen Energy two years ago, and is building the Mount James wind farm and Broadsound solar plant in Queensland.

Sydney-based Autonomous Energy, bought this year, services commercial and industrial companies.

The new commitment would double Iberdrola's share of energy generation for a grid that market operators - and the federal government - intend to ramp up to 82 per cent renewables.