The Australian government has unveiled a plan to become a global leader in green hydrogen production and exports, according to an announcement on Friday. The country, known as one of the world’s top liquefied natural gas (LNG) exporters, is looking to develop its domestic green hydrogen industry and tap into the clean energy market.
The National Hydrogen Strategy, released today, outlines the government’s goals and steps to support the growth of Australia’s hydrogen sector. Central to this strategy is a significant financial commitment, with approximately US$5.4 billion (AUS$8 billion) allocated in this year’s Federal Budget.
This funding is earmarked for the green Hydrogen Production Tax Incentive program and an expanded green Hydrogen Headstart program, according to the government. In May, the Labor Government revealed plans to invest up to US$15 billion (AUS$22.7 billion) over the next ten years to bolster the country’s renewable energy sector and its critical minerals economy.
The new strategy is expected to catalyze US$33.6 billion (AUS$50 billion) in private sector investment in the green hydrogen industry. The government’s vision includes an annual domestic production capacity of over 1 million tons of green hydrogen by 2030, with a potential target of 15 million tons by 2050, guided by five-year milestones.
Australia is already in a strong position to become a green hydrogen leader, with the International Energy Agency (IEA) reporting that more than 20% of the world’s announced hydrogen projects are located in the country.
Chris Bowen, Minister for Climate Change and Energy, stated, “As our industry grows, it will bring more benefits to communities, support economic expansion, and help Australia achieve net-zero emissions. This strategy also sends a clear message to our trading partners about the future hydrogen market in Australia. We are already seeing the advantages of this through new trade agreements with key partners, such as Germany.”