Hydrogen production tax incentive gets green light
Australian electrolyser company Hysata has welcomed the passing of legislation in the Senate that gives the green light to establish a hydrogen production tax incentive in Australia.
The initiative will provide a $2 incentive per kilogram of renewable hydrogen produced for up to 10 years, between 1 July 2027 and 30 June 2040, for projects that reach final investment decisions by 2030.
“Passing of this legislation strengthens Australia’s hydrogen prospects and sends a positive signal to the rest of the world that hydrogen will be an important part of Australia’s clean energy future,” said Hysata CEO Paul Barrett. “Hydrogen can decarbonise Australian heavy industry and unlock export opportunities by using hydrogen as a chemical feedstock in the hard-to-abate sectors.
“With Hysata’s high efficiency electrolysers, Australia has the technology, capability and now the beginnings of policy needed for Australia to be a competitive location for hydrogen production. We look forward to seeing the rollout of the federal government’s holistic hydrogen agenda, including Hydrogen Headstart and support to build sovereign capability in electrolyser manufacturing.”
The Australian Government is investing $4 billion in the Hydrogen Headstart program. Headstart will provide revenue support for large-scale renewable hydrogen projects through competitive hydrogen production contracts.
This investment plans to:
accelerate development of Australia’s hydrogen industry
catalyse clean energy industries
help Australia connect to new global hydrogen supply chains.
Image credit: iStock.com/Scharfsinn86
