A new legislation offering tax incentives for renewable hydrogen production and critical minerals processing has been introduced with it set to take effect from 2027 to 2040.
Under the Future Made in Australia Bill, hydrogen producers will receive $2 per kilogram of renewable hydrogen produced, while critical minerals processors will get a 10 per cent tax break on processing and refining costs.
Both incentives will be available for up to ten years per project.
The program targets 31 critical minerals essential for manufacturing clean energy products such as wind turbines, solar panels, and electric vehicles.
Companies will only receive the tax benefits after their projects are operational and producing.
To qualify, companies must meet certain community benefit requirements, though the specific details are still subject to consultation and will be determined by the Treasury.
The government aims to position Australia as a key supplier in the global transition to renewable energy, while creating local jobs and strengthening the domestic economy.
The incentives will begin in the 2027-2028 fiscal year and run through 2039-2040.
For more renewable and solar news, subscribe to ecogeneration.