Hydrogen can help meet Australia’s emissions reduction targets and underpin economic growth opportunities. But to date, governments have seemed more concerned with hyping Australia’s hydrogen prospects and hoping for the best, rather than doing the hard work to establish integrated industry policy for proportionate, targeted, and timely support.

The best way to seize the hydrogen opportunity is to make strategic choices about its industrial applications that can leverage Australia’s comparative advantage in renewable energy resources and minerals, and build on existing export industries.

The reforms recommended in this report would give Australia the best chance to build a viable hydrogen industry that leverages our comparative advantages, is proportionate to our fiscal capacity, and won’t lead to inefficient subsidies and trade distortions.