Australia announces a US$1.4 billion investment in the renewable hydrogen industry, highlighting the country’s commitment to reducing greenhouse gas emissions and transitioning towards a low-carbon economy.
Australia has committed US$1.4 billion to expand its renewable hydrogen industry in an effort to advance clean energy projects across the country. The government’s annual budget revealed that the Hydrogen Headstart initiative would provide revenue support for large-scale renewable hydrogen projects through competitive production contracts.
This funding will aid in closing the commercial gap for early-stage projects and help Australia achieve up to a gigawatt of electrolyser capacity by 2030 with two to three flagship projects.
Australia has the world’s largest pipeline of renewable hydrogen projects, according to Treasurer Jim Chalmers, who also noted that renewable hydrogen is essential to reach the country’s target of net-zero emissions by 2050.
Chalmers shared that the government is making its largest investment ever in Australia’s energy transformation, allocating a US$2.7 billion budget to renewable energy projects, bringing total investments to over US$27 billion.
Part of the National Reconstruction Fund, which has received US$10 billion, will support green industries, including renewable energy projects. The budget has also set aside funds for the critical minerals industry, which is crucial to creating batteries and other green technologies.
Australia supplies almost half of the world’s lithium, is the third-largest cobalt exporter, and produces many other minerals such as rare earths, copper, graphite, and manganese, all of which are vital to the global energy transition.
To attract foreign investment into critical mineral projects in Australia, the budget has earmarked US$38.6 million for a critical minerals programme.
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