Australia releases 2024 hydrogen strategy with production targets

The Australian government on Friday published its 2024 National Hydrogen Strategy aimed at positioning the country as a global renewable hydrogen leader.

The government says Australia is already well placed for this role, citing estimates of the International Energy Agency (IEA) that more than 20% of announced hydrogen projects globally are in Australia, representing a pipeline valued at over AUD 200 billion (USD 134bn/EUR 121bn).

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At the core of efforts to scale up Australia’s hydrogen industry are the green Hydrogen Production Tax Incentive programme and the expanded green Hydrogen Headstart initiative. These production incentives were announced as part of the government’s Future Made in Australia plan through the 2024/2025 federal budget.

The Hydrogen Production Tax Incentive, at a rate of AUD 2 per kg of eligible hydrogen produced, will form the basis of government support to the sector till 2040. The Hydrogen Headstart programme provides revenue support for large-scale early movers.

The two programmes are expected to take Australia’s annual domestic production capacity to over 1 million tonnes of green hydrogen by 2030. Ultimately, Australia will target producing at least 15 million tonnes of hydrogen annually by 2050.

The document also includes a base export target of 0.2 million tonnes of renewable hydrogen per year for 2030.

“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.

“It sends a clear signal to trading partners about the future marketplace in Australia for hydrogen and hydrogen-based fuels,” he added.

The new strategy is a thorough review of the country’s 2019 hydrogen strategy. It has identified four objectives across supply, demand, community benefit and trade, which are supported by 34 actions. The objectives are as follows:

- Australia’s hydrogen industry is globally cost-competitive.

- Identify and support the most prospective hydrogen demand sectors.

- Communities are aware of and realise the benefits of hydrogen.

- Establish trade at scale and leverage purposeful partnerships.

Bowen launched the new hydrogen strategy at the Asia-Pacific Hydrogen Summit and Exhibition along with announcing new bilateral agreements with Germany. The steps were hailed by the Australian Hydrogen Council.

(AUD 1 = USD 0.668/EUR 0.606)