Hydrogen plan released
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The federal government has released its updated National Hydrogen Strategy.
The strategy outlines a plan to scale up hydrogen production and capitalise on domestic and international opportunities in clean energy, focusing on renewable hydrogen for industrial use and export.
Key to the strategy is a set of initiatives aimed at bolstering Australia's capacity for hydrogen production.
The Albanese Government has committed approximately $8 billion in funding through two major programs: the green Hydrogen Production Tax Incentive program and an expanded green Hydrogen Headstart initiative.
These programs are intended to foster economies of scale and accelerate private sector investment, with the aim of reducing costs and supporting major projects to reach financial viability faster.
By 2030, Australia is expected to produce over 1 million tonnes of green hydrogen annually.
Minister for Climate Change and Energy Chris Bowen says the strategy can drive both economic growth and environmental sustainability.
“This Strategy sets a vision for Australia as a global leader with its clean, innovative, safe and competitive hydrogen industry,” he said.
Bowen says that scaling the hydrogen industry would benefit communities and assist Australia in reaching its net-zero targets.
Additionally, the strategy sends a strong signal to trading partners, with recent agreements expanding with key markets like Germany.
The government projects that by 2050, annual production could rise to 15 million tonnes, supported by five-year milestones to guide progress.
Australia is already home to over 20 percent of global hydrogen projects, with a combined value exceeding $200 billion, according to the International Energy Agency.
The National Hydrogen Strategy also provides guidance on future infrastructure needs and investment, ensuring that hydrogen can be integrated into energy exports and manufacturing sectors such as green metals and chemicals.