Session 16. Oral Presentation for: How can Australia compete in the global hydrogen market (before it’s too late)?

Presented on 28 May 2025: Session 16 Australia led the charge in low-carbon hydrogen (H2) developments, announcing several giga-scale projects between 2020 and 2021, leveraging its world-class renewable resources and land availability. However, recent years have seen significant setbacks, with several high-profile projects cancelled, raising concerns about the future of the industry. Today, Australia’s progress appears to have stalled, with 80% of projects still in early development. The cancellation of the H2Tas 200 ktpa project in Tasmania, alongside Woodside’s acquisition of OCI’s clean ammonia project in Texas, highlights the competitiveness challenges faced by Australian projects. International projects, including those in the US, India and Egypt, have gained traction, supported by low-cost renewable energy and significant government subsidies. The US, for instance, offers a production tax credit of up to US$3/kg H2, making it one of the most competitive suppliers globally. Recently, the Australian Hydrogen Production Tax Incentive (HPTI), which provides a AU$2/kg H2 tax credit, was introduced. Wood Mackenzie estimates that the tax incentive will reduce Australia’s levelised cost of hydrogen, but is it sufficient? What else does Australia need to consider for its projects to be competitive? This paper discusses the state of hydrogen developments globally, comparing it against the progress made in Australia so far. We study the cost competitiveness of Australian projects compared to international projects and consider policy changes that could make Australian projects more bankable. Key focus areas include incentivising domestic demand for hydrogen, enhancing production incentives, advocating for blue hydrogen, aligning with global standards and strengthening collaboration with global partners. To access the Oral Presentation click the link below. To read the full paper click here