Melbourne, Australia: Australian Hydrogen Council (AHC) applauds the passing of critical legislation in the Senate last night that will pave the way for the Australian Government to establish a hydrogen production tax incentive (HPTI).
The Future Made in Australia (Production Tax Credits and Other Measures) Bill 2024 will establish a HPTI worth $2 per kilogram of renewable hydrogen produced between 2027-2028 and 2039-2040 for up to ten years per project.
CEO of the Australian Hydrogen Council Dr Fiona Simon said:
“We are thrilled to see this critical legislation pass. Establishing a hydrogen production tax incentive keeps Australia in the race globally and provides greater certainty to investors while also setting us up to achieve the goals set out in our National Hydrogen Strategy.
“There is no ‘do nothing option’ when it comes to hydrogen. We need it as a large-scale option for decarbonising energy that requires molecules. And we need it as a chemical solution to produce commodities like green iron. And we also need to remain a trusted energy partner across Asia and the export of molecules is critical to Australia’s ongoing prosperity.
“We look forward to working with the Australian Government to support the rollout of the hydrogen production tax incentive. This combined with the upcoming announcement of Hydrogen Headstart recipients will be a welcome boost for companies who are ready to invest in Australia.”
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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. Read more at www.h2council.com.au.
You can download the full PDF here.