There is also a $38.2 million commitment at the DCEEW and the Clean Energy Regulator (CER) over the forward estimates to implement the Guarantee of Origin (GO) Certificate scheme “to track and verify emissions associated with hydrogen and other low emissions products”.

No timeline has been committed to for the expenditure of the full $2 billion.Ī Department spokesperson could not confirm if the government intends to subsidise green hydrogen production to an effective production cost of $2 per kilogram, a stretch target under the former Coalition government. The remaining $1.8 billion not included in the forward estimates will be held in the Contingency Reserve and is subject to change. It will be jointly run by the Department of Climate Change, Energy, Environment, and Water (DCEEW) and the Australian Renewable Energy Agency.Ī competitive application process will be undertaken to select the two to three green hydrogen production projects that will be supported by the program, estimated to be around 1GW of hydrogen electrolyser capacity.Ī Department spokesperson said the first three years will be dedicated to undertaking “detailed work” on the design of the program, worth $26 million, with the estimated $156.2 million outlay for 2026-27 subject to future revision.Ĭonsultation with industry highlighted that capital expenditure support was not as severe an issue as near-term operating costs as the production cost of green hydrogen is above the market price of hydrogen, according to the spokesperson. The Hydrogen Headstart program, revealed in the 2023-24 federal Budget, is targeted at bridging the gap between the market price of hydrogen and the production cost of green hydrogen. The study will identify actions to “further catalyse clean energy industries, ensure Australian manufacturing competitiveness and attract capital investment” by the end of 2023. A hydrogen production credit scheme worth $2 billion has been announced by the Commonwealth government, although funding is not expected to flow to producers until 2026.įunding has also been committed to the development and operation of the Guarantee of Origin (GO) Certificate scheme and a Capacity Investment Scheme to “to underwrite new investment in clean energy”.Ī $5.6 million commitment for a Department of Climate Change, Energy, Environment, and Water-led analysis of the implications of global competition for clean energy industries for Australia has also been made.

Stephen baxter origin