According to H2 View article published on February 27, 2023, the Australian Government looks set to review its National Hydrogen Strategy in response to global policy changes to support the hydrogen industry.
Last Friday (February 24), the Energy and Climate Change Ministerial Council (ECMC) met for the first time to discuss national energy, climate change, and adaption priorities.
All ministers in attendance agreed the Government would lead Australian jurisdictions in a review of the National Hydrogen Strategy to “ensure the national strategy positions Australia on a path to be a global hydrogen leader by 2030 on both an export basis and for the decarbonisation of Australian industries.”
H2 View understands the review will take into account developments across the country and globally since the strategy was released in 2019, with the Council highlighting dramatic policy shifts such as the US’ Inflation Reduction Act.
Passed in August 2022 and hailed by many as a landmark piece of legislation for the hydrogen industry, the Inflation Reduction Act will introduce tax credits of up to $3/kg for hydrogen production, based on the lifecycle greenhouse gas emissions.
Seemingly in response to the US’ move, the European Commission just this month (February 2023) revealed €800m plans for an auction based fixed premium per kg of green hydrogen to subsidise domestic production over a 10-year period.
Coming in support of the review, Fiona Simon, CEO of the Australian Hydrogen Council (AHC) said the Council has heard that Australian projects have been “de-prioritised” since the release of the Inflation Reduction Act, saying “we are now in a race because there is limited land, equipment, and people to deliver this energy transition. Australia has some vital ingredients, but we will be relying on other nations to support the scale-up of the hydrogen industry.”
Simon added, “We welcome the Government’s commitment to revise the National Hydrogen Strategy to respond to the local and global changes since 2019 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.”
Revealed in 2019, the Strategy set out actions for the development of a clean, innovative, safe and competitive hydrogen industry, as well as development signal against scenarios and measures of success.
Themed around national coordination, developing production capacity with local demand, responsive regulation, international engagement, innovation and R&D, skills and workforce, and community confidence, the actions in the Strategy considered hydrogen in relation to exports, transport, industry, gas networks, electricity systems, as well as safety, skills, and environmental impacts.
