Fortescue has backed Australia’s new Hydrogen Production Tax Incentive, calling it a crucial step in driving investment and scaling up the nation’s green hydrogen and green iron metal industries.
The initiative, part of the $17 billion Future Made in Australia (Production Tax Credit and Other Measures) Bill 2024, aims to make Australia a more competitive player in the global energy transition by reducing production costs for critical minerals and hydrogen.
Fortescue chief executive officer Dino Otranto said the tax incentive will help pave the way for a strong and scalable green hydrogen industry, which is essential for decarbonising steel production.
“The passing of the Hydrogen Production Tax Incentive is a critical step in driving investment in green hydrogen – something we need an abundance of if we are to build a green iron metal industry in Australia,” Otranto said.
“By reducing production costs, this will pave the way for a more competitive, robust and scalable green hydrogen industry.”
The Federal Government has made green hydrogen a key pillar of its energy policy, with Otranto highlighting the importance of continued government support in enabling industry-wide decarbonisation.
“This forward-thinking policy, alongside the (Federal) Government’s strong strategic focus and previously announced support for the aluminium sector, will also be integral to driving decarbonisation to enable industry to achieve ‘real zero’,” he said.
“‘Real zero’ takes real action and demands real leadership. These government measures are important steps in raising Australia’s ambition and allowing our nation to tackle climate change head on.”
Fortescue has been one of Australia’s advocates for green hydrogen, investing heavily in renewable energy projects and positioning itself as a global leader in low-emission steel production.
The tax incentive is expected to further support the company’s transition, strengthening Australia’s position in the global clean energy economy.
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