The blueprint for Australia to develop new domestic clean energy manufacturing capabilities and capitalise on massive export opportunities for clean, secure energy supply chains through becoming a hydrogen world leader has been published.
State, territory and federal governments have worked together and with industry to finalise the ³Ô¹ÏÍøÕ¾ Hydrogen Strategy. It identifies four objectives, supported by 34 actions and associated enablers to underpin delivery of Australia’s hydrogen industry at scale.
Central to this delivery is the green Hydrogen Production Tax Incentive program, and the expanded green Hydrogen Headstart program, which the Albanese Government is funding through an estimated $8 billion allocation made in this year’s Federal Budget as part of a Future Made in Australia.
Both programs have been designed with industry to most effectively drive economies of scale, accelerate investment, reduce the cost gap and help major projects reach financial close faster.
They are expected to unlock $50 billion in private sector investment and see Australia’s annual domestic production capacity exceed 1 million tonnes of green hydrogen by 2030.
The Strategy reflects the developments in technologies, markets and the international policy landscape over the past five years and builds on the early foundations for industry growth, to set out the plan for scaling production and market share.
It anticipates possible annual production targets of 15 million tonnes by 2050, supported by five-yearly milestones.
Australia is already well placed to become a world leader, with the International Energy Agency estimating more than 20 per cent of announced hydrogen projects globally are in Australia, with a pipeline valued at more than $200 billion.
The ³Ô¹ÏÍøÕ¾ Hydrogen Strategy is available at .
Comments attributable to Minister for Climate Change and Energy Chris Bowen:
“This Strategy sets a vision for Australia as a global leader with its clean, innovative, safe and competitive hydrogen industry.
“As our industry scales, it will provide further and greater benefit for communities, support broader economic growth and provide a key lever for Australia to reach net zero.
“It sends a clear signal to trading partners about the future marketplace in Australia for hydrogen and hydrogen-based fuels. We’re already seeing the benefits of this through expanded trading agreements with key partners such as Germany.
“Having this blueprint also informs future infrastructure planning and investments across all Australia’s governments, and outlines how Australia can take advantage of the global transition to net zero, by underpinning new domestic manufacturing such as green metals and chemicals, as well as energy exports to our international partners.”
