Australia will need to put aside its aversion to industry policy and devote at least $15 billion in public funds over the coming decade to counter a sudden global hydrogen “subsidy arms race” triggered by the US that threatens to gobble up traditional north Asian export markets, says Deloitte.

The warning comes in a report published on Thursday by the consulting firm and in remarks from former Reserve Bank of Australia deputy governor Guy Debelle, which argue that there needs to be greater political support for hydrogen to ensure it becomes a key component of the net zero transition, and a potential offset for the “rivers of gold” that come from LNG exports.