The Australian Government has released a National Hydrogen Strategy to position the country as a global leader in clean hydrogen production and export.
The strategy, developed in collaboration with state, territory, and federal governments, as well as industry stakeholders, identifies four key objectives supported by 34 actions and associated enablers to drive the development of Australia’s hydrogen industry at scale.
Central to this initiative is the introduction of the Green Hydrogen Production Tax Incentive program and the expanded Green Hydrogen Headstart program.
The Federal Government has committed an estimated $8 billion in funding for these programs through the Future Made in Australia initiative, as outlined in this year’s Federal Budget.
Designed in consultation with industry, these programs aim to drive economies of scale, accelerate investment, reduce cost gaps, and expedite the financial close of major projects.
The government expects these measures to unlock $50 billion in private sector investment and boost Australia’s annual domestic production capacity to exceed 1 million tonnes of green hydrogen by 2030.
The National Hydrogen Strategy builds upon the foundations laid over the past five years, incorporating advancements in technologies, markets, and international policy landscapes.
It sets out a comprehensive plan for scaling production and market share, with possible annual production targets of 15 million tonnes by 2050, supported by five-yearly milestones.
According to the Federal Government, Australia is well-positioned to become a world leader in the hydrogen industry, with the International Energy Agency estimating that more than 20 percent of announced hydrogen projects globally are located in the country, representing a pipeline valued at over $200 billion.
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