Making Australia a Hydrogen powerhouse
Cook AP
Author
The Australian Government has launched a bold vision for the nation's hydrogen industry with significant investments designed to position Australia as a global hydrogen leader by 2030.
Major Investment to Kickstart the Industry
The Albanese Labor Government has invested heavily in the emerging hydrogen industry, with standout measures including:
$2 billion expansion to the Hydrogen Headstart program, bringing total investment to $4 billion
$6.7 billion over 10 years for a Hydrogen Production Tax Incentive for renewable hydrogen produced from 2027
$1.7 billion for a new Future Made in Australia Innovation Fund to support innovation and commercialisation in priority sectors
$1.9 billion to recharge ARENA's core mission developing and commercialising new renewable energy technologies
These substantial investments recognise hydrogen's pivotal role in Australia's clean energy future and economic transformation.
The Hydrogen Headstart Program
At the centre of the government's hydrogen strategy is the Hydrogen Headstart program, which aims to catalyse large-scale renewable hydrogen production by bridging the commercial gap between production costs and market prices.
The program offers:
Production credits delivered over ten years to make projects commercially viable
Focus on projects with electrolysers of at least 50 MW in size for significant industry impact
Support for renewable hydrogen or derivatives such as ammonia and methanol
Projects across Queensland, New South Wales, Tasmania and Western Australia
National Hydrogen Strategy 2024
The government's 2024 National Hydrogen Strategy provides a framework for industry growth with four key objectives and 34 specific actions. Key areas of focus include:
Green metals production using hydrogen as a heat source or chemical
Transport applications for vehicles, buses, trucks, planes and shipping
Energy storage and generation
Chemical feedstock for zero-carbon chemicals and low-carbon liquid fuels
Export opportunities to countries seeking to decarbonise their economies
Comprehensive Support Framework
Beyond Hydrogen Headstart, the government is building a comprehensive ecosystem to support industry development:
Hydrogen Production Tax Incentive providing $2 per kilogram of eligible renewable hydrogen
Regional hydrogen hubs with over $500 million in support for common infrastructure
Guarantee of Origin scheme to verify products' emissions profiles
Regulatory improvements to provide clarity and consistency
International partnerships to build supply chains and attract investment
[2] https://arena.gov.au/news/six-shortlisted-for-2-billion-hydrogen-headstart-funding/
[3] https://www.dcceew.gov.au/energy/hydrogen/hydrogen-headstart-program