Government backs hydrogen, time for industry to step up

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Andrew Forrest’s Fortescue Future Industries is likely to be one of the first out of the gates, after assessing projects in Queensland and the Northern Territory.

The hydrogen bulls will be out in force after the government threw $2 billion behind the nascent industry and backed it to try to become Australia’s new LNG or iron ore.

Indeed, Fortescue was calling for green hydrogen funding as part of the budget, telling Treasury in a January submission that Australia had a “short window” to act and lay the foundations for a globally competitive hydrogen sector.At $2 billion over seven years or more, the package is tiny compared to the United States’ Inflation Reduction Act, which has $US369 billion slated for clean energy and manufacturing, and has already attracted a host of Australian critical metals and energy companies.

Hydrogen hopefuls will be after some sort of firm promise that they can take to the bank, investors and customers, to fund and build their projects. A price or tax credit guarantee would be a good place to start.Fortescue founder Forrest has warned the government that it needed to invest in the hydrogen industry, otherwise hopefuls and their funders would take their money to the US and other friendlier markets.

 

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