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October 13, 2021

NSW launches hydrogen strategy to support decarbonisation

Incentives offered under the scheme are intended to position NSW as a global hydrogen leader.

By Umesh Ellichipuram

The Government of New South Wales (NSW) in Australia has announced the launch of the NSW Hydrogen Strategy, a plan to support its decarbonisation efforts and drive investments of more than A$80bn ($58.8bn) in the region.

Free Report
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How can hydrogen ride the sustainability wave?

The Hydrogen market is expected to expand significantly in the next few years – GlobalData has tracked more than 43.6 mtpa of total active and upcoming low carbon hydrogen production capacity (green and blue hydrogen). As the industry develops and the cost of producing hydrogen drops, demand is expected to increase significantly. As a result, countries across the world are announcing much needed supporting policy framework for hydrogen. While refining and ammonia production have traditionally been the key consumer sectors for hydrogen, new uses such as transport and energy storage are set to influence the market. While green hydrogen presently has a small share in the overall production mix, it is poised to increase given the ambitious targets announced by various countries. GlobalData’s report provides insights into key issues in the emerging hydrogen space, such as:
  • Hydrogen value chain
  • Demand drivers
  • Key application areas
  • Technology trends
Read this report and formulate winning strategies for your business.
by GlobalData
Enter your details here to receive your free Report.

The government expects the NSW Hydrogen Strategy to secure jobs in the state and position it as an energy and economic ‘superpower’.

NSW Premier Dominic Perrottet said: “Australia has an opportunity to be an energy superpower, and New South Wales will lead the country with this hydrogen strategy.

“Our major trading partners see hydrogen as part of their energy future and this state has the skills, infrastructure and renewable energy resources to compete globally in this new industry.”

Perrottet added that during lockdown, the government had focused on post-lockdown recovery and identified hydrogen as an opportunity to attract investment while safeguarding jobs in the state.

Under the NSW Hydrogen Strategy, the state will exempt green hydrogen production from government charges.

Hydrogen producers who connect to parts of the network with spare capacity will be given a 90% exemption from electricity network charges.

The government will offer incentives for hydrogen production and establish a network of hydrogen refuelling stations across NSW.

NSW has already committed to offering A$70m for the development of hydrogen hubs in the Illawarra and Hunter regions.

Fortescue Future Industries chairman and founder Dr Andrew Forrest AO said: “NSW is taking a state leadership position providing clear pathways for how renewable hydrogen can deliver for Australian businesses, Australian jobs, communities and our children’s future.

“We are planning to deliver 15 million tonnes of renewable green hydrogen to the world by 2030 – increasing to 50 million tonnes a year thereafter.”

NSW Treasurer and Energy Minister Matt Kean said that the A$3bn incentives offered under the strategy will help NSW establish itself as a global hydrogen leader and increase the state’s economy size by more than A$600m by 2030.

Related Companies

Free Report
img

How can hydrogen ride the sustainability wave?

The Hydrogen market is expected to expand significantly in the next few years – GlobalData has tracked more than 43.6 mtpa of total active and upcoming low carbon hydrogen production capacity (green and blue hydrogen). As the industry develops and the cost of producing hydrogen drops, demand is expected to increase significantly. As a result, countries across the world are announcing much needed supporting policy framework for hydrogen. While refining and ammonia production have traditionally been the key consumer sectors for hydrogen, new uses such as transport and energy storage are set to influence the market. While green hydrogen presently has a small share in the overall production mix, it is poised to increase given the ambitious targets announced by various countries. GlobalData’s report provides insights into key issues in the emerging hydrogen space, such as:
  • Hydrogen value chain
  • Demand drivers
  • Key application areas
  • Technology trends
Read this report and formulate winning strategies for your business.
by GlobalData
Enter your details here to receive your free Report.

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