Zero Carbon Hydrogen Australia and the Smart Energy Council supports and advocates for the introduction of Production Tax Credits (PTCs) to support Australia’s green hydrogen and critical minerals value-adding industries, ensuring our position as a global leader in the green industrial revolution. As the world accelerates towards a clean energy future, the demand for green hydrogen and decarbonised materials is growing rapidly. Australia is uniquely positioned to play a pivotal role in the production and export of green hydrogen, thanks to its secure trade routes to key markets in Asia, resilient investment climate, and proven capacity to scale large export industries.
This submission expresses our strong support for the introduction of PTCs in the Future Made in Australia Bill to strengthen Australia’s green hydrogen and critical minerals industries.
We strongly support the Future Made in Australia package. The introduction of PTCs is essential to securing Australia’s smart energy manufacturing and domestic green hydrogen future. By directly supporting hydrogen produced locally, the PTC will lower production costs and enable the industry to scale rapidly. By enabling rapid scaling of the industry, the PTC will drive green industrialisation, create high-value jobs, and stimulate economic growth. Moreover, as nations increasingly assess trade partnerships through the lens of energy and national security, Australia’s green hydrogen industry will become a key player in trusted, sustainable global supply chains.
The Future Made in Australia Act (FMIA) represents a critical response to the changing dynamics of global supply chains and the growing need for energy security. It is a vital step to revitalise Australian industrial capabilities, increase economic complexity, and secure Australia’s role as a leader in the global energy transition. This bill, in conjunction with the PTC, will not only benefit the hydrogen industry but also extend to sectors such as critical minerals processing, green metals production, and low-carbon liquid fuels. These industries are integral to Australia’s economic future and our broader decarbonisation efforts.
PTCs will signal the Australian Government’s confidence in the hydrogen industry and its derivatives and critical minerals value adding, acknowledging the growing need for clean molecules and fuels to achieve whole-of-economy decarbonisation. This clear signal to international investors will affirm that Australia is serious about its future in hydrogen.
Hydrogen plays a critical role in Australia’s green industrialisation, particularly in the production of green iron. By replacing carbon-intensive processes with hydrogen, Australia can leverage its world-leading iron ore reserves and renewable energy potential. This positions Australia as a leader in the decarbonisation of the global steel and iron industry, aligning with the growing momentum toward green iron production.
Zero Carbon Hydrogen Australia has worked closely with the Department of Treasury in developing the Future Made in Australia Bill and has provided detailed feedback through both public and private consultations.
Passing this Bill as soon as possible is crucial. Swift passage is essential to signal to industry and international investors that Australia is committed to a green hydrogen future and committed to adding value in Australia for our extraordinary, world-leading critical minerals. PTCs, alongside supporting policies, will ensure Australia remains competitive in an evolving global market, helping us meet our decarbonisation targets while positioning the nation as a trusted energy partner.
On behalf of the industry, we applaud the Committee for considering the timeliness of this bill’s passage. It is a critical moment for the hydrogen industry and will serve as a strong signal of Australia’s commitment to a clean energy future. Hydrogen is not just an energy solution but a pathway to creating jobs, boosting exports, and building a thriving, sustainable economy. We strongly urge the Government to recognise the importance of the PTC in Australia’s hydrogen strategy and to take immediate action to secure our nation’s future as a leader in the global green hydrogen economy.
We would welcome the opportunity to appear before the Senate Committee and again urge the timely passage of this important Bill.
