SYDNEY: The Australian government will introduce legislation to implement production tax incentives for renewable hydrogen and critical minerals to help boost investment in the sector, which could play a major role in energy transition plans.
The proposed law will set up a tax incentive worth 10% of relevant processing and refining costs for 31 critical minerals from the financial year ending June 2028 to the 2039 to 2040 financial year, for up to 10 years per project, the government said.
For renewable hydrogen, the planned legislation will establish a tax incentive worth A$2 or about US$1.31 per kilogramme of renewable hydrogen produced during the same period.
“The legislation will give investors clarity and certainty to invest in Australia’s potential to add more value to its natural resources, and help deliver cheaper and cleaner energy,” Treasurer Jim Chalmers said.
The incentives will be provided once projects are up and running, producing hydrogen or processing critical minerals used in products like wind turbines, solar panels and electric cars, Chalmers said.
Major economies are seeking to invest to support clean-energy projects and compete with China in manufacturing electric vehicles and semiconductors, seen as vital for prosperity and national security. — Reuters
