Government publishes National Hydrogen Strategy

The federal government has announced that it has published the National Hydrogen Strategy, saying it is the blueprint for Australia to develop new domestic clean energy manufacturing capabilities and capitalise on export opportunities by becoming a hydrogen world leader.

State, territory and federal governments have worked together and with industry to finalise the strategy. It identifies four objectives, supported by 34 actions and associated enablers, to underpin delivery of Australia’s hydrogen industry at scale.

Central to this delivery is the green Hydrogen Production Tax Incentive program and the expanded green Hydrogen Headstart program, which the federal government is funding through an estimated $8 billion allocation made in this year’s federal Budget.

The government says both programs have been designed with industry to drive economies of scale, accelerate investment, reduce the cost gap and help major projects reach financial close faster. They are expected to unlock $50 billion in private sector investment and see Australia’s annual domestic production capacity exceed 1 million tonnes of green hydrogen by 2030.

The new strategy reflects the developments in technologies, markets and the international policy landscape over the past five years and builds on the early foundations for industry growth, to set out the plan for scaling production and market share.

It anticipates possible annual production targets of 15 million tonnes by 2050, supported by five-yearly milestones.

“This strategy sets a vision for Australia as a global leader with its clean, innovative, safe and competitive hydrogen industry,” said Minister for Climate Change and Energy Chris Bowen. “As our industry scales, it will provide further and greater benefit for communities, support broader economic growth and provide a key lever for Australia to reach net zero.

“It sends a clear signal to trading partners about the future marketplace in Australia for hydrogen and hydrogen-based fuels. We’re already seeing the benefits of this through expanded trading agreements with key partners such as Germany.”

Australia is already well placed to become a world leader in hydrogen, with the International Energy Agency estimating that more than 20% of announced hydrogen projects globally are in Australia, with a pipeline valued at more than $200 billion.

The National Hydrogen Strategy is available here.

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