Hydrogen 2021 Federal Budget Update

Articles Written by Martin Kudnig (Partner), Rick Ruffolo (Associate)

On 11 May 2021 the Treasurer of the Commonwealth, the Honourable Josh Frydenberg, handed down the 2021/2022 Federal Budget. Pursuant to the Paris Agreement, the Government has committed to reducing 2005 emission levels by 26 to 28 percent by the year 2030. In order to fulfil that commitment, the Government is investing $1.6 billion in clean energy technologies.

A $1.2 billion Co-investment Facility is to be established to invest in project-based international partnerships and priority technologies. This includes $539.2 million for hydrogen and carbon capture, use, and storage projects (CCS/CCUS), broken down as follows:

  •          $275.5 million over the next five years for the development of four new clean hydrogen hubs in regional Australia and implement a clean hydrogen certification scheme; and
  •          $263.7 million over the next 10 years for the development of CCS/CCUS projects and hubs.

The remaining $565.8 million has been allocated to establish international partnerships on practical low emission projects.

The Government has also committed an additional $316.7 million to help industry and business reduce their emissions through voluntary action and adopting low emissions technology.

Important Disclaimer: The material contained in this article is comment of a general nature only and is not and nor is it intended to be advice on any specific professional matter. In that the effectiveness or accuracy of any professional advice depends upon the particular circumstances of each case, neither the firm nor any individual author accepts any responsibility whatsoever for any acts or omissions resulting from reliance upon the content of any articles. Before acting on the basis of any material contained in this publication, we recommend that you consult your professional adviser. Liability limited by a scheme approved under Professional Standards Legislation (Australia-wide except in Tasmania).

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