Last week, the Albanese government pledged over $800 million in production subsidies to a green hydrogen development in remote Western Australia. This is part of an $8.7 billion federal government war chest to create incentives for green hydrogen.
Labor’s Future Made in Australia (FMIA) plan, announced in 2024, provided a budget allocation of $6.7 billion to provide a $2 incentive for every kilogram of green hydrogen produced from 2027-28. FMIA also committed $2 billion for new projects under the Hydrogen Headstart program.
The Western Australian project aims to use solar and wind-powered hydrogen to produce and export up to 900,000 tonnes of ‘green’ ammonia each year, commencing in the early 2030s. It is the first project to receive funding from the federal government’s Hydrogen Headstart fund.
