Invest
NSW unveils $3bn green hydrogen strategy
The NSW government is looking to lure new investments in the energy sector by backing green hydrogen production in a move said to rejuvenate the economy.
NSW unveils $3bn green hydrogen strategy
The NSW government is looking to lure new investments in the energy sector by backing green hydrogen production in a move said to rejuvenate the economy.
The NSW government is betting on new investments in green hydrogen to boost rural economies and help the state achieve its current goal of net-zero emissions by 2050.
The state’s newly unveiled hydrogen strategy provides up to $3 billion in incentives, including tax exemptions for green hydrogen production, plus a new hydrogen refuelling station network to support hydrogen hubs in the Illawarra and the Hunter.
The strategy also includes a 90 per cent exemption from electricity network charges for green hydrogen producers who connect to parts of the network with spare capacity.
The announcement was eagerly applauded by ETF Securities, which this week launched an exchange traded fund specialising in investing in the world’s leading hydrogen companies.
ETF Securities head of distribution Kanish Chugh said hydrogen is sometimes referred to as the “Swiss Army knife” of decarbonisation.
“The hydrogen economy is a greenfield investment opportunity, still in its early development stage,” Mr Chugh said.
“However, its potential applications are limitless — from making fertiliser to powering the world’s transport systems.”
As opposed to non-green hydrogen production, green hydrogen is typically made using exclusively renewable energy sources.
Since the process only requires water, an electrolyser and the energy needed to make it run, the idea here is to use green hydrogen to meet the needs ordinarily met by existing hydrogen gas, but with a reduced carbon footprint.
NSW Premier Dominic Perrottet framed the launch of the state’s new hydrogen strategy scheme as an opportunity to drive decarbonisation and establish Australia as an economic and energy superpower in the wider region.
“Australia has an opportunity to be an energy superpower, [and] New South Wales will lead the country with this hydrogen strategy,” Mr Perrottet said.
NSW Treasurer and energy minister Matt Kean suggested that the strategy could increase the size of the NSW economy by more than $600 million by 2030.
“Hydrogen will not only help the state halve our emissions by 2030 and get to net zero by 2050, it will create new opportunities for our heavy industry, and an economic bonanza of investment and jobs,” Mr Kean said.
He said that the strategy is forecast to more than halve the cost of green hydrogen production in NSW and promised that it would establish NSW as a destination for global investment in green hydrogen.
Meanwhile, Deputy Premier and Minister for Regional NSW Paul Toole emphasised the opportunity that the state’s hydrogen strategy represented for rural areas.
“Places like Parkes, the Illawarra, and the Upper Hunter are uniquely placed to take advantage of these opportunities, with existing supply lines, access to transport links and a skilled workforce ready to make regional NSW a leader in hydrogen technology,” Mr Toole said.
RELATED ARTICLES
About the author
About the author
Economy
Economist calls for July RBA rate cut following inflation data
An economist from State Street Global Advisors has called for the Reserve Bank of Australia to cut interest rates in July following today's Consumer Price Index data for June. Read more
Economy
GDP data prompts economist to predict faster RBA rate cuts
Australia's latest GDP growth data has come in significantly below expectations, prompting an economist to suggest the Reserve Bank may need to ease monetary policy more aggressively. Read more
Economy
Global markets face turbulent start amid tariff concerns, but outlook remains cautious
Global equity and bond markets have experienced a turbulent start to 2025, primarily due to concerns that a potential tariff-driven trade war could heighten inflation and recession risks. Read more
Economy
RBA may cut rates faster if GDP data disappoints, economists say
The Reserve Bank of Australia may cut interest rates more quickly if next week's GDP data disappoints, economists said following today's consumer price index data for May. Read more
Economy
RBA delivers widely expected rate cut as inflation optimism balances global uncertainty
The Reserve Bank of Australia has cut the cash rate by 25 basis points, delivering on widespread market expectations while signalling a clearer directional shift towards less restrictive monetary ...Read more
Economy
Economist warns strong jobs data may delay further RBA rate cuts
Strong employment growth in April has put expectations for multiple interest rate cuts at risk, though upcoming economic data may clarify the need for lower rates, according to State Street Global ...Read more
Economy
Australian inflation continues downward trend, nearing RBA target
The Australian Bureau of Statistics (ABS) has reported that the Consumer Price Index (CPI) rose 2.7 per cent in the year to August, down from 3.5 per cent in July and 3.8 per cent in June. Read more
Economy
UK markets poised for gains after election, global geopolitical risks remain
Chris Iggo, Chief Investment Officer at AXA Investment Managers, has provided an optimistic outlook for UK markets following the recent general election, while cautioning about ongoing global ...Read more
Economy
Economist calls for July RBA rate cut following inflation data
An economist from State Street Global Advisors has called for the Reserve Bank of Australia to cut interest rates in July following today's Consumer Price Index data for June. Read more
Economy
GDP data prompts economist to predict faster RBA rate cuts
Australia's latest GDP growth data has come in significantly below expectations, prompting an economist to suggest the Reserve Bank may need to ease monetary policy more aggressively. Read more
Economy
Global markets face turbulent start amid tariff concerns, but outlook remains cautious
Global equity and bond markets have experienced a turbulent start to 2025, primarily due to concerns that a potential tariff-driven trade war could heighten inflation and recession risks. Read more
Economy
RBA may cut rates faster if GDP data disappoints, economists say
The Reserve Bank of Australia may cut interest rates more quickly if next week's GDP data disappoints, economists said following today's consumer price index data for May. Read more
Economy
RBA delivers widely expected rate cut as inflation optimism balances global uncertainty
The Reserve Bank of Australia has cut the cash rate by 25 basis points, delivering on widespread market expectations while signalling a clearer directional shift towards less restrictive monetary ...Read more
Economy
Economist warns strong jobs data may delay further RBA rate cuts
Strong employment growth in April has put expectations for multiple interest rate cuts at risk, though upcoming economic data may clarify the need for lower rates, according to State Street Global ...Read more
Economy
Australian inflation continues downward trend, nearing RBA target
The Australian Bureau of Statistics (ABS) has reported that the Consumer Price Index (CPI) rose 2.7 per cent in the year to August, down from 3.5 per cent in July and 3.8 per cent in June. Read more
Economy
UK markets poised for gains after election, global geopolitical risks remain
Chris Iggo, Chief Investment Officer at AXA Investment Managers, has provided an optimistic outlook for UK markets following the recent general election, while cautioning about ongoing global ...Read more
