Australian Hydrogen Council Calls for Doubling of Hydrogen Production Tax Incentive
Key Ideas
- The Australian Hydrogen Council is advocating for the doubling of the hydrogen production tax incentive to compete with the US hydrogen credit.
- The council believes that the current incentive of $2/kg is insufficient compared to other schemes, highlighting the need for a more competitive environment.
- While requesting a doubling of the incentive, the council acknowledges the challenges in achieving this policy change at the present time.
- This move aligns with the council's efforts to enhance the competitiveness of Australia's hydrogen industry and attract investments in the sector.
The Australian Hydrogen Council has urged the country's treasury to consider doubling the current hydrogen production tax incentive to better position Australia in the global market. In a statement released on Friday, the council expressed concern that the current incentive of $2/kg is lower than other schemes, particularly when compared to the US hydrogen credit. The council emphasized the importance of maintaining competitiveness in the hydrogen sector and suggested that doubling the incentive would help bridge the commercial gap. Despite recognizing the challenges in implementing such a change immediately, the council remains optimistic about the long-term benefits of a more robust incentive structure. This recommendation comes as part of the council's ongoing efforts to advocate for policies that support the growth of Australia's hydrogen industry and attract international investments. By aligning with global trends and enhancing the attractiveness of domestic hydrogen production, the council aims to bolster Australia's position as a key player in the evolving hydrogen economy.