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Released July 12, 2024 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The Australian government has introduced a clean energy funding bill to parliament that aims to unlock AUS$22.7 billion (US$15.4 billion) in funds across a number of key sectors.
The 'Future Made in Australia' Bill is key to the country's transition to net zero and will be used to fund a number of renewable energy sectors and the development of clean energy technologies. The bulk of that funding--AUS$19.7 billion (US$13.3 billion)--will go to green hydrogen, green metals, low carbon liquid fuels, critical minerals, batteries and solar. The bill will also empower the government to identify and directly invest in major projects of "national interest."
"This legislative package is a key part of putting our Future Made in Australia plan into action, so Australia makes the most of the major economic and industrial opportunities of the energy transition," said Prime Minister Anthony Albanese. "It will bring together our policy work in this space to ensure it is an effective and practical strategy for Australia to seize this opportunity. This legislation is all about unlocking private sector investment to build a stronger, more diversified and more resilient economy powered by renewable energy that creates secure, well-paid jobs around the country. It embeds into law a disciplined and rigorous approach that will govern Future Made in Australia investments. This package does three main things. It will legislate our new National Interest Framework, introduce a robust sector assessment process, and outline the Community Benefit Principles that will apply to investment decisions."
The government intends to spend AUS$8 billion (US$5.4 billion) over the coming decade on green hydrogen production, technology development and skills. It will center around two pillars: the Hydrogen Production Tax Incentive and the Hydrogen Headstart Program. The incentive will pay AUS$2 (US$1.35) per kilogram of green hydrogen produced over a 10-year period to producers of green hydrogen, starting from 2027-28. The existing Hydrogen Headstart Program will be allocated with AUS$1.3 billion (US$870 million) over 10 years from 2024--25. Another AUS$7 billion (US$4.7 billion) has been allocated for the refining and processing of critical minerals, including a Critical Minerals Production Tax Incentive (CMiPTI), a trade enhancement initiative, and continued funding for exploration, the Critical Minerals Facility and the Northern Australia Infrastructure Facility (NAIF).
In April, Industrial Info reported on the opening of Australia's first homegrown hydrogen electrolyser-manufacturing facility in Queensland by the mining giant Fortescue Metals Group Limited (Perth). The Gladstone Electrolyser Facility will have capacity to produce more than 2 gigawatts (GW) of Proton Exchange Membrane (PEM) electrolyser stacks annually, enough to produce 200,000 tonnes of green hydrogen each year. The plant forms the center of the wider Green Energy Manufacturing (GEM) Centre being developed by Fortescue in Gladstone. The next phase will be the nearby construction of a 50-megawatt (MW) green hydrogen production facility called PEM50. For additional information, see April 11, 2024, article - Australia Opens First Hydrogen Electrolyser Plant.
The new bill has been welcomed by the key green industries, employment and climate groups. "The Australian Hydrogen Council is delighted to see this Federal Budget deliver the significant investment required to match the ambition and opportunity of the Australian hydrogen industry, manufacturing industry and our trading partners," said Dr. Fiona Simon, chief executive officer of the Australian Hydrogen Council. "Hydrogen delivers comparative advantage to Australia not only as a molecule but as the critical pathway to decarbonise hard to abate sectors, and establish new high value exports in green steel, green iron and green ammonia."
Michele O'Neil, president of the Australian Council of Trade Unions, added: "Future Made in Australia leverages our unrivaled sun and wind power to create the jobs and build the industries that will form the backbone of the clean energy economy and the key to our national security. In the transition to net zero by 2050, we are projected to create between one and two million new direct jobs over the next 25 years."
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
The 'Future Made in Australia' Bill is key to the country's transition to net zero and will be used to fund a number of renewable energy sectors and the development of clean energy technologies. The bulk of that funding--AUS$19.7 billion (US$13.3 billion)--will go to green hydrogen, green metals, low carbon liquid fuels, critical minerals, batteries and solar. The bill will also empower the government to identify and directly invest in major projects of "national interest."
"This legislative package is a key part of putting our Future Made in Australia plan into action, so Australia makes the most of the major economic and industrial opportunities of the energy transition," said Prime Minister Anthony Albanese. "It will bring together our policy work in this space to ensure it is an effective and practical strategy for Australia to seize this opportunity. This legislation is all about unlocking private sector investment to build a stronger, more diversified and more resilient economy powered by renewable energy that creates secure, well-paid jobs around the country. It embeds into law a disciplined and rigorous approach that will govern Future Made in Australia investments. This package does three main things. It will legislate our new National Interest Framework, introduce a robust sector assessment process, and outline the Community Benefit Principles that will apply to investment decisions."
The government intends to spend AUS$8 billion (US$5.4 billion) over the coming decade on green hydrogen production, technology development and skills. It will center around two pillars: the Hydrogen Production Tax Incentive and the Hydrogen Headstart Program. The incentive will pay AUS$2 (US$1.35) per kilogram of green hydrogen produced over a 10-year period to producers of green hydrogen, starting from 2027-28. The existing Hydrogen Headstart Program will be allocated with AUS$1.3 billion (US$870 million) over 10 years from 2024--25. Another AUS$7 billion (US$4.7 billion) has been allocated for the refining and processing of critical minerals, including a Critical Minerals Production Tax Incentive (CMiPTI), a trade enhancement initiative, and continued funding for exploration, the Critical Minerals Facility and the Northern Australia Infrastructure Facility (NAIF).
In April, Industrial Info reported on the opening of Australia's first homegrown hydrogen electrolyser-manufacturing facility in Queensland by the mining giant Fortescue Metals Group Limited (Perth). The Gladstone Electrolyser Facility will have capacity to produce more than 2 gigawatts (GW) of Proton Exchange Membrane (PEM) electrolyser stacks annually, enough to produce 200,000 tonnes of green hydrogen each year. The plant forms the center of the wider Green Energy Manufacturing (GEM) Centre being developed by Fortescue in Gladstone. The next phase will be the nearby construction of a 50-megawatt (MW) green hydrogen production facility called PEM50. For additional information, see April 11, 2024, article - Australia Opens First Hydrogen Electrolyser Plant.
The new bill has been welcomed by the key green industries, employment and climate groups. "The Australian Hydrogen Council is delighted to see this Federal Budget deliver the significant investment required to match the ambition and opportunity of the Australian hydrogen industry, manufacturing industry and our trading partners," said Dr. Fiona Simon, chief executive officer of the Australian Hydrogen Council. "Hydrogen delivers comparative advantage to Australia not only as a molecule but as the critical pathway to decarbonise hard to abate sectors, and establish new high value exports in green steel, green iron and green ammonia."
Michele O'Neil, president of the Australian Council of Trade Unions, added: "Future Made in Australia leverages our unrivaled sun and wind power to create the jobs and build the industries that will form the backbone of the clean energy economy and the key to our national security. In the transition to net zero by 2050, we are projected to create between one and two million new direct jobs over the next 25 years."
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
