Billionaire Andrew Forrest warns Australia will lose a “multi-trillion dollar” industry if it doesn’t match America

Billionaire clean energy crusader Andrew Forrest has warned the Albanese government’s refusal to match America’s green incentives will come at a heavy price.

Billionaire clean energy crusader Andrew Forrest has sounded the alarm about the Albanese government’s refusal to match American incentives for green hydrogen, saying Australia faces losing “a multi-trillion dollar industry”.

On the sidelines of the APEC summit in San Francisco, the Fortescue founder unveiled a New York-based green energy investment fund, $US35m for an advanced manufacturing centre in Detroit, and plans to open a Phoenix green hydrogen hub next year.

Mr Forrest said his American spending blitz was boosted by the Biden administration’s subsidies worth hundreds of billions of dollars that made the US “the most attractive place in the world for green energy and green manufacturing projects”.

In an interview, he said he was “at a loss to see why other countries” including Australia would not offer similar tax incentives for green hydrogen projects.

“The logic is so easily missed,” Mr Forrest said.

Australian mining businessman Andrew Forrest looks on as US President Joe Biden delivers remarks during the APEC summit. Picture: AFP

“If you don’t do it, a multi-trillion dollar future industry will go to other countries. If you do it, then it’s no money out of any taxpayer’s pocket … because you are literally giving a tax deduction on a future industry which doesn’t even exist.”

“I think it’s absolutely common sense that Australia goes after it, and Australia goes after it hard. We’ve proven in the United States that it absolutely works.”

He said he was confident the Albanese government would respond because it understood that “the world is, from a climate perspective, staring into an abyss”.

Anthony Albanese with US President Joe Biden as they attend the Asia-Pacific Economic Cooperation (APEC) Leaders' Week in San Francisco. Picture: AFP

“The country can grow and grow massively if it gets this industry going,” Mr Forrest said.

While investment in new wind and solar projects in Australia has all but stalled this year, Mr Forrest said he was confident it would only be a “temporary lull” because of the impact of soaring interest rates.

“The tide of history is fully behind renewable energy,” he said, describing it as “the best way to lower the cost of living through lowering the cost of power”.

Robert Tichio, the chief executive of Fortescue Capital, said he would be targeting Australian super funds to pump money into renewable energy projects through the new fund.