Australia's Future in Clean Energy: Bill Enacts Support for Hydrogen and Critical Minerals
Key Ideas
  • The Future Made in Australia (Production Tax Credits) Bill has been passed, providing crucial support for hydrogen production and critical minerals processing.
  • The bill includes a Hydrogen PTI and a Critical Minerals PTI, offering financial incentives to promote renewable hydrogen production and processing of designated critical minerals.
  • CME believes these incentives will attract investors and help Australia maintain its position as a leading mining jurisdiction while contributing to the global energy transition.
  • CME's recommendations for advancing the resources sector include policy adjustments, infrastructure development, and tax rate reductions to enhance productivity and attract investments.
The Chamber of Minerals and Energy WA (CME) has expressed its support for the passage of the Future Made in Australia (Production Tax Credits) Bill, which includes provisions to benefit hydrogen production and critical minerals processing. The Chief Executive Officer of CME, Rebecca Tomkinson, highlighted the significance of the newly legislated production tax incentives (PTI) in leveraging Australia's strengths in upstream mining to progress along the value chain. The Hydrogen PTI within the bill offers financial support of $2 for every kilogram of renewable hydrogen produced, while the Critical Minerals PTI provides incentives for processing and refining costs of designated critical minerals. The aim is to signal to investors that Australia is committed to seizing opportunities in the global energy transition. CME emphasizes the importance of maintaining Australia's competitiveness in the mining sector and suggests various recommendations, including policy adjustments, infrastructure development, and tax rate reductions. These measures are seen as essential for enhancing productivity, attracting investments, and supporting decarbonization initiatives like green iron production.
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