Australia hydrogen group backs A$10 billion fuel security plan

The Australian Hydrogen Council welcomed the government's A$10 billion ($7.25 billion) Australian Fuel Security and Resilience package, calling it an important step toward strengthening energy sovereignty and broadening support beyond conventional energy sources.

The package will secure Australia's near-term fuel and fertilizer security, establish a permanent Australian Fuel Security Reserve of around a billion litres, and increase the Minimum Stockholding Obligation by around 10 days for every type of fuel, Minister for Climate Change and Energy Chris Bowen announced May 6.

"The explicit inclusion of fertilizer security is particularly important," Australian Hydrogen Council CEO Fiona Simon said. "We have seen how exposed Australia can become when essential industrial inputs are imported through fragile global supply chains."

Simon said nitrogen-based fertilizers rely on ammonia, and ammonia relies on hydrogen, noting Australia has the resources and capability to produce these inputs domestically, but market conditions have not supported that outcome.

The package could mark an evolution from a policy focused primarily on hydrogen production toward a more integrated approach to the products and supply chains that hydrogen can enable, she said.

The Council will examine how the package can support demand-side measures, offtake structures, and end-use market development across agriculture, aviation, shipping, mining, transportation, and industry as further details are released, it said.

To examine package

"If designed well, the proposed Fuel and Fertiliser Security Facility can help close the loop between production, demand, storage, logistics and domestic supply-chain resilience," Simon said.

The government will work with state governments to conduct feasibility studies on new or expanded refining capabilities, building on work with current refinery operators to retain refining capacity in the decade beyond 2030, Bowen said.

S&P Global Energy's Hydrogen Production Assets data showed that Australia has around 159 renewable or low-carbon hydrogen projects with a combined projected capacity of around 15.71 million mt/year.

Australia will phase in changes to fringe benefits tax exemptions for electric vehicles from April 2027, capping the full discount at A$75,000 to encourage more affordable models, the government said May 5.

The EV tax changes will be implemented progressively in three phases and are estimated to save the budget $1.7 billion over the five years from 2025-26, the government said.

Platts, part of S7P Global Energy, assessed India Renewable Hydrogen Term Contract at $3.18/kg (weekly assessment) April 30, up 1.27% from a month ago.