Australia is targeting production of 15m tonnes of green hydrogen – with a stretch potential of 30m annually – by 2050, according to a ‘revitalised’ National Hydrogen Strategy 2024.
Setting out decade markers, Australia aims to begin industry activation and initial scale production (2020-2030), increase scale production and export of hydrogen and derivatives (2030-2040), and scale up export and consolidation of domestic use, including more challenging uses such as aviation (2040-2050). It aims to produce 0.5-1.5m tonnes by 2030.
The Australian Government will implement ‘significant production support’ through the Hydrogen Production Tax Incentive and Hydrogen Headstart programmes.
The $2 per kilogramme Hydrogen Production Tax Incentive will provide time-limited, demand-driven production support to eligible producers of renewable hydrogen through Australia’s tax system, forming the basis of government support to the sector to 2040.
The Hydrogen Headstart programme represents an early strategy action to address the current financial gap between the production cost and sale price of renewable hydrogen, focusing on industry early-movers with well-developed projects.
Source: Australia National Hydrogen Strategy 2024
The most prospective hydrogen demand sectors identified in the report are green metals (iron and alumina), ammonia, long-haul transport (heavy road, aviation, shipping) and power generation and grid support.
Delivering on the strategy relies on complementary and consistent actions from states and territories, and delivering large-scale industrial projects will place ‘considerable demands’ on the Australian workforce, it notes.
The strategy will be underpinned by regular policy review and broader integration.
The Hon. Chris Bowen, MP Minister for Climate Change and Energy, said, “Along with our mature innovation ecosystem, our experience making large export industries, and our record as a stable and trusted trading partner, we have the elements to be a global hydrogen leader.”
