More than $2 billion has been committed to grow the nation’s emerging hydrogen industry as part of $4 billion in renewable energy spending, with subsidies to combat growing international competition for the green fuel’s market share in Asia.
“Seizing these kinds of industrial and economic opportunities will be the biggest driver and determinant of our future prosperity,” Treasurer Jim Chalmers said, adding that the government was investing to realise Australia’s “future as a renewable energy superpower”. A Deloitte Economics report in February said Australia was at a “hydrogen tipping point” due to the US subsidy scheme, warning that a failure to respond would cause Australia toDeloitte said the “goldilocks zone” for subsidies would be $2 a kilogram, about half the value of the US scheme, due to Australia’s competitive advantages of access to vast wind and solar power resources and proximity to major growth markets in big energy importing nations such as Singapore, Japan and Korea.