Australia's Future Made: Investing in Green Energy and Green Hydrogen
Key Ideas
  • Australia's Future Made policy aims to boost green energy sectors like solar, critical minerals, and green hydrogen with significant investments.
  • The policy includes tests to ensure public money is invested efficiently, particularly focusing on competitiveness, net zero contributions, and value for money.
  • Green hydrogen, crucial for sectors like ammonia production and heavy transport, is seen as essential for achieving net zero emissions and becoming a global leader in the industry.
  • The article emphasizes the importance of establishing local and global demand, as well as providing grants and concessional finance, to scale up green hydrogen production successfully.
The Australian government's Future Made policy is designed to propel the country towards becoming a renewable superpower by targeting green subsidies to drive investments in various sectors, including green hydrogen. Future Made allocates significant funding for renewable energy, critical minerals, solar panel manufacturing, and green hydrogen initiatives. The policy emphasizes the necessity of green hydrogen for industries such as iron, steel, and ammonia production to achieve net zero emissions. Climateworks' models suggest that green hydrogen can significantly contribute to emission reductions, especially in sectors where electrification is challenging or costly. The article highlights the importance of public investment in kickstarting the green hydrogen industry at scale, despite the current lack of established demand. It also mentions the need for a mix of grants and concessional finance to encourage market entry and overcome the challenges of displacing fossil fuels. Future Made aims to address these issues by setting out rigorous tests to ensure efficient use of public funds and avoid picking winners without sufficient evidence. The article concludes by expressing optimism that, with the right strategies and investments, Australia could emerge as a global leader in green hydrogen production and capitalize on its existing advantages in renewable resources and export relationships.
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