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.
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