The Australian Government has passed the Future Made in Australia legislation and its two supporting bills that establish the voluntary Guarantee of Origin (GO) scheme—a government-backed certification scheme to authenticate low-emissions products and support renewable electricity.
This will help Australian producers remain competitive in new and emerging domestic and global markets by accounting for and accurately presenting the low-emissions reality of their products.
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The Future Made in Australia (Production Tax Credit and Other Measures) Bill 2024 was also introduced into Federal Parliament this week. This bill is yet to be passed, however it is a critical piece of legislation required for progressing Australian hydrogen projects and building future Australian prosperity. This legislation aims to establish two tax incentives:
- Hydrogen Production Tax Incentive worth $2 per kilogram of renewable hydrogen produced between 2027–2028 and 2039–40 for up to 10 years per project.
- Critical Minerals Production Tax Incentive worth ten per cent of relevant processing and refining costs for Australia’s 31 critical minerals, for critical minerals processed and refined between 2027–28 and 2039–40, for up to 10 years per project.
Climate Change and Energy Minister Chris Bowen said, “We are committed to launching the Guarantee of Origin scheme in 2025 to provide Australian industry with the certainty it needs to make the most of Australia’s distinctive competitive advantages as we make the clean energy transition.
“The GO Scheme is a key element of the energy transition toolbox that our government is putting to work to drive investment as we strive to become a renewable energy superpower.”
The news was welcomed by Australian Hydrogen Council (AHC) CEO Dr Fiona Simon.
“Australia’s Guarantee of Origin (GO) scheme to track and verify clean and green hydrogen has been in the making for five years. During this time, AHC has worked closely with both sides of government to develop and inform this voluntary framework which is critical for our industry,” Dr Simon said.
“We are thrilled to see this bill passed as part of the government’s Future Made in Australia package, which will help Australia keep pace with other nations, and meet the expectations of our trading partners.
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“AHC is also pleased to see the Federal Government introduce a bill to establish a hydrogen production tax incentive this week. This is a critical measure announced in this year’s Federal Budget that is fundamental to keeping Australia in the global race for production of hydrogen and its derivatives such as green ammonia, green methanol and green iron.
“We have many hydrogen projects in the pipeline across Australia, with key projects on the cusp of a financial investment decision. The industry will benefit from certainty around the hydrogen production tax incentive and Hydrogen Headstart.”
