Australia opens consultation on Guarantee of Origin scheme design

The Australian government has opened a consultation on a Guarantees of Origin system tracking and certifying emissions from hydrogen and hydrogen energy carriers, it said Sept. 20.

The Department of Climate Change, Energy, the Environment and Water (DCCEEW) said it was looking at the detailed design of an internationally-aligned scheme, building on a prior consultation and paper published in December 2022.

The mechanism "will provide transparency to end-users in Australia and overseas over the carbon emissions of the products they are buying," the department said. "This will help Australia to produce and export hydrogen and other clean energy products at scale."

Feedback would inform the development of legislation and regulations for the scheme, expected to be in place in 2024.

The design paper "provides a practical perspective on what participants will be able to expect from the scheme once it commences," the department said.

The paper includes a hydrogen production emissions calculator developed by the Clean Energy Regulator's GO trials to assist in the estimation of greenhouse gas emissions from hydrogen production.

"Industry input is vital to Australia building a viable and strong hydrogen export capability," said Australian Hydrogen Council in a social media post Sept. 21.

New products

The paper also proposes an annual consultation to expand the scheme into new products outside of hydrogen.

In the 2023-24 (July-June) budget, A$38.2 million ($24.50 million) was provided to design and implement a GO scheme.

The paper also seeks feedback on whether Renewable Energy Certificates should be surrendered prior to GO certificates being created.

The GO scheme will be a reference matter for Australia's Hydrogen Headstart Program announced in the 2023-24 budget, and state and territory schemes for renewable energy incentives and targets, it said.

Emissions accounting for product GOs will cover the supply of raw materials, production, and transport and storage to the point of consumption or international departure (well-to-delivery gate), the paper said.

Speaking in May, DCCEEW official Chris Simkus said the scheme would be based on methodologies developed by the International Partnership for Hydrogen and Fuel Cells in the Economy.

The scheme will help unlock economic opportunities for the Australian industry to meet growing domestic and international demand for verified renewable energy and clean products.

The consultation for the GO scheme design survey closes Oct. 17. A separate consultation on emissions accounting closes Nov. 14.

Australia has a total of 148 renewable and low carbon hydrogen projects with a combined capacity estimated to be around 13.5 million mt, as seen on the S&P Global Commodity Insights Hydrogen Production Assets database.