Hydrogen Council welcomes review of National Hydrogen Strategy

The Australian Hydrogen Council has welcomed a review of the National Hydrogen Strategy as well as state strategies

The new strategy will respond to the local and global changes since 2019 and guide Australia on its path to be a global hydrogen leader.

CEO of the Australian Hydrogen Council Fiona Simon said: “Globally, competition for hydrogen projects is fierce.

“Significant financial incentives have been announced by various countries, with each jostling for first mover advantage.

“The international funding and policy approaches announced to date demonstrate governments’ recognition that a profound restructuring of the energy system is required and that this is about maintaining economic prosperity for their nations.”

Simon said the energy and industry transition will be materials intensive, as well as capital intensive. It will connect complex systems and require fundamental change, planning and creativity across sector, departmental and political boundaries.

She said: “We are already hearing that Australian projects are being de-prioritised where there are choices.

“Australia has some vital ingredients, but we will be relying on other nations to support the scale-up of the hydrogen industry.”

Simon said the council hoped 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.

This view has been confirmed by a Deloitte report released today which outlines that Australia’s global competitiveness on clean energy is declining and if Australia does not swiftly respond to the US Inflation Reduction Act, significant production of hydrogen is unlikely to begin until the 2030s.

Deloitte have advised that a production credit of $2/kg for 10 years would be a sensible level in order to incentivise the scaling up of industry in the next decade.

Picture: Fiona Simon, CEO of the Australian Hydrogen Council