Development of the clean hydrogen industry in Australia – a regulatory and fiscal roadmap for the fuel of the future

Abstract

As Australia moves toward decarbonisation across all of its sectors, the production and use of clean hydrogen have emerged as a clear alternative. It is versatile, storable, transportable and, ultimately, a fuel source that is carbon free. Funding and policy announcements across State and Federal Governments for the hydrogen industry have built momentum in recent years, with projects already underway to address new uses for hydrogen, which are looking to improve the economics of production to meet the expected future demand not only here in Australia but also internationally. So, how can Australia lead the global shift to hydrogen and what is the regulatory and fiscal infrastructure needed to drive the development of the hydrogen industry in Australia? The key issues to be considered include the following: The need for government funding for development of the future uses of hydrogen to help build confidence and stimulate investment across the supply chain to enable commercialisation; Establishing an attractive investment environment for projects in Australia – not only the production of hydrogen but also for the supply chain infrastructure; Development of a certification scheme and Australia’s role in setting regional and/or international standards and Policy settings, including the necessary regulatory and fiscal reforms, relevant to support the period of transition to green hydrogen.