Massive hydrogen benefits in Australian Federal Budget 2024

You'd think perhaps H2G will do pretty well (both in terms of share price and its business) from various matters announced in last night's budget. It included an estimated $8.0 billion over ten years from 2024–25 (and an average of $1.2 billion per year from 2034–35 to 2040–41) to support the production of renewable hydrogen, including:

- a Hydrogen Production Tax Incentive from 2027–28 to 2040–41 to producers of renewable hydrogen to support the growth of a competitive hydrogen industry and Australia’s decarbonisation, at an estimated cost to the budget of $6.7 billion over ten years from 2024–25 (and an average of $1.1 billion per year from 2034–35 to 2040–41). The Hydrogen Production Tax Incentive will provide a $2 incentive per kilogram of renewable hydrogen produced for up to ten years per project, between 2027–28 and 2039–40 for projects that reach final investment decisions by 2030;

- $1.3 billion over ten years from 2024–25 (and an average of $151.6 million per year from 2034–35 to 2038–39) for an additional round of the Hydrogen Headstart program to bridge the green premium for early-mover renewable hydrogen projects. The expanded Hydrogen Headstart program will support the early movers investing in the industry’s development in a way that complements the support provided through the tax system; and

- $17.1 million over four years from 2024–25 (and an additional $2.5 million in 2028–29) to deliver the 2024 National Hydrogen Strategy, including hydrogen infrastructure planning, social license and industry safety training and regulation.