Proposed New Australian Hydrogen Production Incentives And Support

The Australian Government has recently announced proposed measures to support the production of hydrogen in Australia utilising renewable energy. These include a new hydrogen production tax incentive and are estimated to amount to support of AU$8 billion over 10 years.

Whilst a number of key details remain to be announced/consulted on, we set out below an overview of these proposed new measures. They come alongside increased global competition to establish domestic hydrogen production and aim to respond to the incentives offered by other jurisdictions – including, in particular, the hydrogen production tax credit offered under the US Inflation Reduction Act (see, for example, our previous alerts here and here).