Australian Hydrogen Council Urges Support for Hydrogen Production Tax Incentive Legislation
Key Ideas
- Australian Hydrogen Council CEO Dr Fiona Simon advocates for the urgent passage of the Future Made in Australia (Production Tax Credits and Other Measures) Bill 2024 to establish a hydrogen production tax incentive in Australia.
- The proposed legislation aims to offer a tax incentive of $2 per kilogram of renewable hydrogen produced between 2027-2028 and 2039-2040 for up to 10 years per project, signaling Australia's commitment to attracting hydrogen project investments.
- Dr. Simon emphasizes the importance of hydrogen in decarbonizing energy, providing a chemical solution for decarbonization and opportunities for Australian investors and exports, while highlighting the significance of ongoing policy developments in the hydrogen industry.
- The Australian Hydrogen Council expresses strong support for various Australian Government initiatives impacting the hydrogen industry, stressing the need for continuity and proactive measures to ensure Australia remains competitive in the global market.
The Australian Hydrogen Council (AHC) CEO, Dr. Fiona Simon, has urged the Senate Standing Committee on Economics to back the swift enactment of crucial legislation to establish a hydrogen production tax incentive (HPTI) in Australia. The Future Made in Australia (Production Tax Credits and Other Measures) Bill 2024, recently introduced to the Federal Parliament, proposes setting up an HPTI valued at $2 per kilogram of renewable hydrogen produced over a specific period for projects. Dr. Simon emphasized the potential for Australia to lead in the hydrogen industry, catering to both domestic and international markets. She highlighted the importance of hydrogen in decarbonizing energy, especially for industrial activities that cannot transition to electrification. The HPTI is seen as a signal to investors, showcasing Australia's commitment to attracting project investments and advancing technological capabilities. Dr. Simon underlined the necessity of enacting this legislation promptly to maintain Australia's competitive edge amidst global advancements in hydrogen technologies. Additionally, she clarified the distinction between nuclear energy and hydrogen production, emphasizing the complementary roles they play in energy transition. The AHC strongly supports various Australian Government initiatives, including the Hydrogen Headstart, the revised National Hydrogen Strategy, and the Capacity Investment Scheme, recognizing the pivotal role of policy support in driving the hydrogen industry's growth. The focus remains on fostering a robust hydrogen sector to sustain heavy industries and explore export opportunities, ensuring Australia's economic resilience in a carbon-conscious global market.
Topics
Production
Renewable Energy
Government Policy
Energy Transition
Economic Development
Legislation
Industry Support
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