National Hydrogen Strategy (2023)

Policy Engagement Overview

InfluenceMap analysis indicates there has been an almost even spread of both supportive and unsupportive engagement on Australia’s Hydrogen Strategy. A total of 20 companies and industry associations in InfluenceMap’s database submitted a response to the Review of the National Hydrogen Strategy consultation. Of the respondents, 6 (30%) engaged positively and 7 (35%) engaged negatively. The other 7 respondents (35%) engaged with mixed or unclear positions on the policy.

Policy Engagement Trends

Support for an ambitious National Hydrogen Strategy was led by entities representing the mining sector, including Fortescue, Rio Tinto, Glencore and the Australian Aluminium Council. Other entities that communicated support included Iberdrola and the Australian Hydrogen Council.

The mining organizations all supported the production of renewable hydrogen, with Glencore also supporting hydrogen targets for hard-to-abate sectors, Rio Tinto supporting increased funding for the government’s Hydrogen Headstart program, a $4 billion scheme to support large-scale renewable hydrogen projects, and the Australian Aluminium Council supporting additional renewable energy capacity.

The most supportive position was adopted by Fortescue which advocated for the strategy to exclusively prioritize renewable hydrogen, supported additional renewable energy capacity and also supported national hydrogen production targets.

Outside the mining sector, Iberdrola supported renewable hydrogen measures in the policy and specified the need to prioritize hard-to-abate sectors. The entity also supported the introduction of hydrogen production targets, the need for long-term investment signals, and a hydrogen production credit scheme. Similarly, the Australian Hydrogen Council supported the use of hydrogen for hard-to-abate sectors and production targets.

On the other hand, opposition to an ambitious National Hydrogen Strategy was led by entities from the energy and utilities sectors. Companies and industry associations in this group included Chevron, Australian Energy Producers (formerly APPEA), Australian Pipelines and Gas Association (APGA), Energy Networks Australia, APA Group and ATCO.

The Australian Energy Producers and Chevron appeared to adopt the most oppositional/negative positions on the strategy. Both advocated for a technology neutral approach, did not appear to support sector specific targets and appeared to advocate for the prioritization of low-carbon or fossil fuel hydrogen over renewable hydrogen. Similarly negative positions were adopted by APGA and Energy Networks Australia, which both appeared to call for hydrogen to be utilized in non-hard-to-abate sectors and advocated for hydrogen blending with fossil gas. In contrast to the consultation paper’s suggestion that a more targeted approach based on renewable hydrogen could be beneficial, Energy Networks Australia also advocated for a technology neutral approach.

Similar advocacy was seen in the transport and utilities sectors with Toyota, APA Group and ATCO also all appearing to advocate for hydrogen to be utilized in non-hard-to-abate sectors, with Toyota supporting its use in light-duty transport. APA Group and Toyota likewise appeared to advocate for the strategy to pursue a technology neutral approach, while ATCO appeared to advocate for hydrogen blending with fossil gas.

Impacts on Policy Ambition

The government released a finalized Hydrogen Strategy in September 2024 which represents a comprehensive and formal review of the 2019 National Hydrogen Strategy. Where the 2019 strategy enabled a technology neutral approach, the finalized strategy prioritizes policy efforts and financial support towards hydrogen produced from renewable energy. The finalized policy also specifies that the application of hydrogen should be focused on hard-to-electrify sectors such as long-haul transport and industry. The finalized reform does not appear to have been impacted by companies and industry associations advocating for a technology neutral approach or expansion of application sectors.