Melbourne, Australia: The Australian Hydrogen Council applauds the Australian Government for passing Future Made in Australia legislation last night including important bills to establish Australia’s Guarantee of Origin (GO) certification scheme for clean and green hydrogen.
The Future Made in Australia (Production Tax Credit and Other Measures) Bill 2024 was also introducedinto Federal Parliament this week. This bill is yet to be passed, however it is a critical piece of legislation required for progressing Australian hydrogen projects and building future Australian prosperity.
This legislation aims to establish two tax incentives:
- Hydrogen Production Tax Incentive worth $2 per kilogram of renewable hydrogen produced between 2027–2028 and 2039–40 for up to ten years per project.
- Critical Minerals Production Tax Incentive worth ten per cent of relevant processing and refining costs for Australia’s 31 critical minerals, for critical minerals processed and refined between 2027–28 and 2039–40, for up to ten years per project.
Dr Fiona Simon, CEO of the Australian Hydrogen Council said:
“Australia’s Guarantee of Origin (GO) scheme to track and verify clean and green hydrogen has been in the making for five years. During this time, AHC has worked closely with both sides of Government to develop and inform this voluntary framework which is critical for our industry.
“We are thrilled to see this bill passed as part of the Government’s Future Made in Australia package, which will help Australia keep pace with other nations, and meet the expectations of our trading partners.
“AHC is also pleased to see the Federal Government introduce a bill to establish a hydrogen production tax incentive this week. This is a critical measure announced in this year’s Federal Budget that is fundamental to keeping Australia in the global race for production of hydrogen and its derivatives such as green ammonia, green methanol and green iron.
“We have many hydrogen projects in the pipeline across Australia, with key projects on the cusp of a financial investment decision. The industry will benefit from certainty around the hydrogen production tax incentive and Hydrogen Headstart.
“These projects will provide significant environmental and economic benefits particularly in regional areas of Australia – delivering new jobs, industries and benefits to local communities.
“AHC and many of our members who are ready to invest in hydrogen, or already investing significantly – are urging the Federal Government and our Parliamentarians to swiftly pass this important legislation in the new year.
“We look forward to continuing to work with the Federal Government on the launch of the GO scheme in 2025, and supporting progress of the Future Made in Australia agenda and new legislation that is critical for the future of our industry.”
-ENDS-
About Australian Hydrogen Council
The Australian Hydrogen Council is the peak representative body for the Australian hydrogen industry, with members from across the hydrogen value chain. We represent the emerging hydrogen industry and connect it with its stakeholders to collectively create a clean and resilient energy future that has hydrogen as a key part of the energy mix.
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