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Home Home - Featured
Green Hydrogen

Australian Hydrogen Future at Stake

Anela DoksoBy Anela Dokso15/10/20242 Mins Read
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Time is running out for investors interested in Australia’s clean energy sector. A new law being considered by parliament could play a crucial role.

It aims to track the production and emissions of green hydrogen, renewable electricity, and potentially other energy sources. This legislation, known as the Future Made in Australia laws, could mark an important step in verifying the environmental credentials of hydrogen production.

The chief executive of the Australian Hydrogen Council, Fiona Simon, emphasized the urgency of passing these laws. She highlighted the potential frustrations within the industry due to delayed action. However, she believes the proposed scheme, which guarantees the origin of hydrogen, will hold producers accountable. The goal of the clean and green hydrogen industry is to support a decarbonized future. Simon noted that consumers would be eager to understand the nature of the hydrogen they are purchasing, especially if it intends to replace fossil fuels.

The certification scheme in question targets green hydrogen, which uses renewable energy. However, Europe has a broader framework that includes blue hydrogen, which involves gas in its process, and pink hydrogen, produced using nuclear-powered electricity.

Importance for Investing

Nicole Wyche from WWF-Australia expressed how crucial the legislation is. She remarked it would help Australia align with best practices, particularly in regions rich in iron ore like Western Australia that lack a renewable energy target. Without this alignment, potential investors might lose confidence and seek opportunities elsewhere. Wyche also pointed out that the Asian steel industry is preparing for Europe’s impending carbon border adjustment mechanism. This policy will impose tariffs on carbon-intensive goods starting in 2026.

Ms. Wyche stressed the limited time available to attract necessary investments. She underscored the magnitude of transforming the industrial sector and how it cannot simply happen overnight. Starting sooner rather than later is imperative to stimulate the required industrial revolution.

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