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Net Zero Commission
4 Parramatta Square
12 Darcy Street
Parramatta, New South Wales 2150
To the Net Zero Commission,
Re: Net Zero Commission 2025 consultation
The Australian Hydrogen Council (AHC) welcomes the opportunity to engage with the Net Zero Commission as it develops strategies to support decarbonisation in New South Wales (NSW).
The AHC is the peak body for the hydrogen industry and our membership includes companies from across the value chain. Our members are at the forefront of Australia’s hydrogen industry, developing the technology, skills and partnerships necessary to ensure that hydrogen and its derivatives play a meaningful role in decarbonising and strengthening Australian industry.
We are pleased to see the Net Zero Commission looking to accelerate climate action in NSW and aligning with federal processes to achieve this.
Electrification is an integral element of Australia’s decarbonisation, and we support the logic of electrifying where this is possible and economic. While many applications for molecules will shift to electrons as electrification emerges as the most efficient option for continued operations, there is still a significant portion of industrial activity that will not be covered. And hydrogen is the only large-scale option for decarbonising energy that requires molecules. That is, Australia will not get to net zero without hydrogen.
We take this opportunity to ensure that hydrogen and its derivatives are adequately considered within this strategy. Hydrogen will be critical to decarbonise the hard to electrify and difficult to abate sectors of the economy, whether in its ability to decarbonise steelmaking (at least the iron ore reduction phase), provide heat for high temperature processes (such as processing bauxite into alumina to make aluminium), for heavy transport (including as a feedstock for future marine and aviation fuels), or to support food security via low carbon ammonia fertilisers.
In NSW, there are Safeguard facilities that are already or may in future be looking to hydrogen to assist in their decarbonisation, such as Orica’s ammonia production facility on Kooragang Island, BlueScope’s iron production in Port Kembla, and Boral’s cement facility. In 2022-23, these three facilities were in the top seven highest emitters in the state, collectively producing over eight million tonnes of carbon dioxide emissions.[1] In 2023-24, each of these facilities has reported lower net emissions and represents some of the few Safeguard covered industries in NSW not explicitly in coal mining.[2] Especially as the Net Zero Commission looks to accelerate decarbonisation, each of these unique industries will need to be wrapped around to support the state’s economic diversity and facilitate a just transition, working alongside federal initiatives such as the Net Zero Economy Authority.
There is also significant ambition federally and in NSW to grow a hydrogen and derivatives industry, such as through the Future Made in Australia agenda, NSW Hydrogen Hubs in the Hunter, Port Kembla and Moree, and this signal flows through to the ports that have molecules as part of their strategies.[3] This ambition will need to be recognised and supported through the Net Zero Commission strategies.
Therefore, through this process, the Net Zero Commission must also consider how to facilitate this long term hydrogen and derivatives industry, incentivising deployment of relevant technologies, driving demand through policy and procurement levers, building the necessary infrastructure, and developing modelling to best sequence the transition and decarbonisation of industry to ensure that the hydrogen is available (and in the quantities required) when NSW industry demands it.
The AHC has been very engaged in the role of the states and territories in critical sectors to achieve net zero. We have worked closely with the NSW government as it has progressed policy and research, such as through the Renewable Fuel Scheme, strategies to develop a renewable fuels industry, joint work on the green ammonia opportunity, and by providing connections to international industry and investment perspectives.
We would be delighted to be involved in the development of the Net Zero Commission’s strategies. In the first instance, please see some of our relevant policy responses, in-depth positions and recent recommendations that can assist the Net Zero Commission in its remit.[4]
We look forward to engaging with you further through this process.
If you wish to discuss any element of this submission, please contact me at [email protected].
Kind Regards,
Natasha Cerexhe
Policy Manager
Australian Hydrogen Council
[1] CER (2025) Safeguard facility covered emissions data 2022–23, Australian Government, https://cer.gov.au/markets/reports-and-data/safeguard-facility-covered-emissions-data-2022-23.
[2] CER (2025) 2023–24 baselines and emissions data, Australian Government, https://cer.gov.au/markets/reports-and-data/safeguard-data/2023-24-baselines-and-emissions-data.
[3] For example: Port of Newcastle (2025) Minister for Climate Change and Energy unveils final master plan design for nation’s most advanced Clean Energy Precinct, 4 July, https://pon.com.au/news/minister-for-climate-change-and-energy-unveils-final-master-plan-design-for-nations-most-advanced-clean-energy-precinct/.
[4] AHC (2025) 2025-26 Pre-budget submission, submission, January, https://aidc.org.au/wp-content/uploads/2025/02/25-26-AHC-Pre-budget-submission.pdf ;
AHC (2024) Re: Opportunities for a renewable fuel industry in NSW, submission, 30 August, https://aidc.org.au/wp-content/uploads/2024/09/240830-NSW-renewable-fuels-AHC-submission.pdf ;
AHC (2024) AHC submission to transport sector plan and LCLF, submission, 26 July, https://aidc.org.au/wp-content/uploads/2024/07/240726-AHC-submission-to-transport-sector-plan-and-LCLF-1.pdf ;
AHC (2024) Climate Change Authority 2024 issues paper: targets, pathways and progress, submission, 21 May, https://aidc.org.au/wp-content/uploads/2024/05/240521-AHC-submission-CCA-issues-paper.pdf ;
AHC (2024) Electricity and Energy Sector Plan – Discussion Paper, submission 26 April, https://aidc.org.au/wp-content/uploads/2024/04/240426-AHC-submission_Electricity-and-Energy-Sector-Plan.pdf.