Australia's new hydrogen strategy sets path for production and utilisation

Around 20% of hydrogen projects globally are in the said country.

With the goal of becoming an industry leader, Australia has released its 2024 National Hydrogen Strategy that laid out its framework for production, use, and export of hydrogen.

According to the Department of Climate Change, Energy, the Environment, and Water, the 2024 National Hydrogen Strategy is a comprehensive update of the 2019 strategy, reflecting recent advancements in technology, markets, and international policy.

Data from the International Energy Agency noted that Australia has a significant hydrogen project pipeline, representing 20% of all worldwide announcements.

Under the new strategy, Australia aims for “[a] clean, innovative, safe and competitive hydrogen industry that benefits Australia’s communities and economy, enables our net zero transition, and positions us as a major global player.”

A key component of the updated strategy is the production incentives introduced in the Australian Government's $22.7b Future Made in Australia plan, announced in the 2024-2025 Federal Budget. The Hydrogen Production Tax Incentive and the expanded Hydrogen Headstart Program aim to foster economies of scale, attract investment, and bridge the cost gap for renewable hydrogen.