A government scheme to enable hydrogen producers to prove their products are made with renewables and low-emissions processes is now a step closer after legislation landed in parliament on Thursday, five years after policy design work commenced.
The Albanese government wants the Guarantee of Origin (GO) Scheme operating next year in time for its production tax credits for renewable hydrogen from 2027.
Under the watch of the Clean Energy Regulator, the voluntary scheme aims to bring integrity and competition to the emerging market.
Three enabling bills were tabled on Thursday alongside the unveiling of cost estimates for the regulator and producers who want to be issued Guarantee of Origin (GO) Certificates.
The GO scheme has landed in parliament almost five years since the former Coalition government initiated a policy design process for an emissions certification scheme for hydrogen.
Two phases of industry trials were undertaken between 2022 and 2023.
When it commences, the Clean Energy Regulator will issue two kinds of GO certificates for renewable energy (REGO) and for low-emissions products, beginning with hydrogen.
REGO certificates will prove when, where and how renewable electricity was produced and in 2031 will replace existing Large-scale Generation Certificates — similar certificates that are issued to renewable energy power stations.
The Albanese government eventually wants the product guarantee of origin certificates to cover other products like low-carbon liquid fuels, green metals, and biomethane and biogas in the future.
Enabling legislation for the GO scheme was tabled in parliament by Assistant Minister for Climate Change and Energy Josh Wilson who said the scheme is “an essential platform for unlocking crucial investment in Australia’s net zero industries”.
“It will create opportunities for Australian businesses to verify new clean products and to market their low-emissions credentials through an effective, trusted scheme,” Mr Wilson said.
“Aligned with international standards, it will improve Australian competitiveness in new and emerging domestic and global markets, and will increase Australian exports and Australian jobs as part of the Future Made in Australia imperative.”
In the 2023-24 federal budget, $38.2 million was committed to establishing the GO scheme followed by an additional $32.2 million in the 2024-25 budget. The government has also committed $6.8 million in annual ongoing funding to the scheme.
An initial $2.2 million was budgeted in 2022-23 for early development and consultation work alongside $19.7 million over 2021-22 and 2022-23 for the Clean Energy Regulator to undertake industry trials and initial ICT system build.
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