Green hydrogen dream turns taxpayer nightmare
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Earlier this year, the Albanese government pledged more than $800 million in production subsidies for a green hydrogen project in remote Western Australia. This formed part of the federal government’s $8.7 billion war chest to create incentives for green hydrogen.
Labor’s Future Made in Australia (FMIA) plan, revealed in 2024, included a $6.7 billion budget provision to provide a $2 incentive for each kilogram of green hydrogen produced between 2027 and 2028. FMIA has also committed $2 billion to new Hydrogen Headstart initiatives.
Energy Minister Chris Bowen claimed the subsidies represent a “globally significant” project.
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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.