Australia's Ambitious Goal: Leading the Way in Green Hydrogen Production
Key Ideas
  • Australia targets production of 15m tonnes of green hydrogen by 2050, with potential for 30m annually.
  • The strategy focuses on industry activation, scale production, and export, with support through tax incentives and programmes.
  • Key sectors for hydrogen demand include green metals, ammonia, transport, and power generation, creating workforce demands.
  • The Minister for Climate Change and Energy highlights Australia's potential to be a global hydrogen leader with strong foundations.
Australia has set an ambitious goal in its 'revitalised' National Hydrogen Strategy 2024, aiming to produce 15m tonnes of green hydrogen by 2050, with a stretch target of 30m annually. The strategy outlines decade markers, with plans to start industry activation and scale production from 2020 to 2030, further increase production and export from 2030 to 2040, and focus on export and domestic use consolidation, including challenging sectors like aviation, from 2040 to 2050. By 2030, the country aims to produce 0.5-1.5m tonnes of hydrogen. The Australian Government is offering support through the Hydrogen Production Tax Incentive and Hydrogen Headstart programmes. The tax incentive of $2 per kilogramme will provide production support to renewable hydrogen producers through the tax system until 2040. The Hydrogen Headstart programme aims to bridge the financial gap between production cost and sale price, particularly for early-movers in the industry. Key sectors identified for hydrogen demand include green metals, ammonia, long-haul transport, and power generation. To achieve these targets, the strategy emphasizes the need for coordinated actions from states and territories and highlights the significant demands that large-scale industrial projects will place on the Australian workforce. Regular policy reviews and broad integration will underpin the strategy's success. The Minister for Climate Change and Energy, Hon. Chris Bowen, believes that Australia, with its innovation ecosystem, export experience, and reputation as a stable trading partner, has the potential to become a global leader in the hydrogen industry.
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