Australia is poised to become a major player in the clean energy transition thanks to the 23 billion Australian dollar (more than $15 billion) Future Made in Australia package proposed by the government, which includes tax incentives for renewable hydrogen projects.
With the massive stimulus package, the government aims to ramp up domestic manufacturing and accelerate the move to a pollution-free future. As The Guardian reported, AU$13.7 billion (about $9 billion) will go toward subsidies for green hydrogen and the processing of 31 critical minerals.
Per ABC Australia, the government will offer a 10% production tax credit to help ease the cost burden for companies in the critical minerals sector, starting in 2027.
As for green hydrogen, the government will give companies AU$2 ($1.30) per kilogram of hydrogen for 10 years once they begin production. The only requirement is that they're an established business by 2030.
In addition, IG Bank stated that AU$1.7 billion (about $1.2 billion) will be set aside for an innovation fund. This will prioritize industries such as green metals, batteries, and low-carbon liquid fuels.
Along with that, IG Bank noted, AU$134.2 million (about $89.2 million) will be allocated to worker training programs, and AU$519.1 million (about $344.8 million) will be set aside for a Future Drought Fund.
Solar energy is also getting a boost, with up to AU$1 billion (about $664.2 million) planned to be invested in solar power manufacturing with Australia's Solar Sunshot program.
According to The Guardian, the funding will be allocated in phases over the next decade to help Australia with its "biggest transformation since the Industrial Revolution," as the treasurer, Jim Chalmers said in a budget speech.
Chalmers called the sweeping measures "a golden opportunity for Australia" but noted the government needed to be strategic about which projects would receive public investments.
The ambitious stimulus package will help create jobs in the clean energy sector and support Australia's economy, furthering the world's climate goals and ushering in a healthier, safer future. It's similar to America's Inflation Reduction Act, which provides thousands of dollars in tax breaks and credits for homeowners to install solar panels and make other energy-efficient upgrades.
"Australian energy can power it, Australian resources can build it, Australia's regions can drive it, Australian researchers can shape it, and Australian workers can thrive in it," Chalmers told parliament, per The Guardian.
"Our $22.7bn [about $15 billion] Future Made in Australia package will help make us an indispensable part of the global economy."
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