Green hydrogen producers to get more than $3 billion in incentives to create jobs

The state government has released its Hydrogen Strategy, with plans to create 10,000 jobs by giving green hydrogen producers more than $3 billion in incentives.

A bold plan to turbocharge the production of clean hydrogen in NSW is expected to create more than 10,000 jobs within the decade while helping heavy industry to decarbonise.

The NSW government’s long-awaited Hydrogen Strategy will provide up to $3bn in incentives for green hydrogen producers and is expected to attract more than $80bn in investment by 2050.

Treasurer and Environment Minister Matt Kean said the plan to boost hydrogen production will grow the NSW economy by more than $600m by the end of the decade.

Green hydrogen has been touted as a game-changer.

Green hydrogen has been touted as a game changer and is expected to create 10,000 jobs.

It can be used by heavy industries in a way other renewable energy sources can’t, to manufacture steel without emitting greenhouse gases.

To produce hydrogen without emissions, renewable ­energy is used to power an “electrolyser” which separates water into its constituent elements – hydrogen and oxygen.

But that process is expensive, and the NSW government aims to reduce the cost of producing green hydrogen from about $6 per kilogram to just $2.80 per kilogram by 2030.

“This strategy is forecast to more than halve the cost of green hydrogen production in NSW and will make NSW the best place to invest in hydrogen in the world,” Mr Kean said.

The strategy will be ­crucial to halving emissions in the state by 2030.

The government said Del­oitte modelling has predicted the hydrogen strategy will create more than 10,000 jobs.

“Australia has an opportunity to be an energy superpower, NSW will lead the country with this Hydrogen Strategy,” Premier Dominic Perrottet said.

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

The Illawarra and Hunter will be targeted for new green hydrogen production; the government has already committed $70m to develop hydrogen hubs in the regions.

The strategy has been welcomed by titans of industry including Andrew ‘Twiggy’ Forrest. “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,” he said.