The Australian Hydrogen Council welcomes the agreement by the Commonwealth to lead jurisdictions in a review of the National Hydrogen Strategy as a response to the local and global changes since 2019, further guiding Australia on its path to being a global hydrogen leader.  

“Globally, competition for hydrogen projects is fierce,” Australian Hydrogen Council CEO Fiona Simon. 

“Significant financial incentives have been announced by various countries, with each jostling for first mover advantage. The international funding and policy approaches announced to date demonstrate governments’ recognition that a profound restructuring of the energy system is required and that this is about maintaining economic prosperity for their nations.” 

Check out: Australia’s energy stakeholders cooperate to stabilise power sources 

According to Dr Simon, Australia’s transition in the energy and industry sector will be capital and resource intensive as it will connect complex systems and require fundamental change, planning and creativity across the sector. 

“We are already hearing that Australian projects are being de-prioritised where there are choices. The Inflation Reduction Act means that we are now in a race because there is limited land, equipment and people to deliver this energy transition,” she said. 

“Australia has some vital ingredients, but we will be relying on other nations to support the scale-up of the hydrogen industry.” 

The Australian Hydrogen Council welcomed the Government’s commitment to revise the National Hydrogen Strategy and provide a plan for the transition. 

“We hope to see a strategy that will reconsider the best range and combination of long-term economic mechanisms to develop the hydrogen industry, including grants, debt and underwriting,” Dr Simon concluded. 

Check out: Prime Minister says no quick solution to ongoing energy crisis 

A recent Deloitte report has highlighted Australia’s declining global competitiveness in clean energy. The report states that, if Australia does not swiftly respond to the Inflation Reduction Act, significant production of hydrogen is unlikely to begin until the 2030s. 

This will result in 65 per cent less hydrogen exports per annum by 2050 compared to before the IRA’s introduction. 

Deloitte has advised that a production credit of AUD$2/kg for 10 years would be a sensible level to incentivise the scaling up of the industry in the next decade. 

Eliza Sayon

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Eliza is a content producer and editor at Public Spectrum. She is an experienced writer on topics related to the government and to the public, as well as stories that uplift and improve the community.

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