Green hydrogen support and funding In 2024, the government launched its revised hydrogen strategy to accelerate the production, domestic use and export of green hydrogen. The strategy is underpinned by the following incentives:94 Hydrogen Headstart Program: ~AU$2.7 billion is still available from this AU$4 billion fund. Its aim is to provide revenue support for large-scale “first mover” projects in renewable/ green hydrogen and derivatives (e.g. ammonia, methanol).95 Funding is provided to successful projects as a credit to cover the commercial gap between the cost of producing renewable hydrogen and its market price. Hydrogen production tax incentive (HPTI): AU$2 per kg of clean/renewable hydrogen produced between 2028 and 2040 – at an estimated medium-term cost of AU$6.7 billion.96 Certification via the GO scheme is required to access this incentive and projects must meet an emissions intensity of ≤ 0.6 kg CO2e/kg H2. Fortescue executive chairman Andrew Forrest called the announcement of the HPTI a “historic moment”, adding: “This incentive will fast-track the development of a green iron industry in Australia.”97 Regional Hydrogen Hubs Program: over AU$500 million available to co-fund regional hydrogen infrastructure in up to seven hydrogen hubs across the country. Other existing federal and state support –Renewables: Solar Sunshot Program and Battery Breakthrough Initiative – AU$1.5 billion to strengthen battery and solar panel supply chains. National Energy Transformation Partnership – a framework for the federal and state governments to collaborate on transforming energy systems to net zero by 2050, with a target to reach 82% renewable electricity by 2030. The partnership prioritizes First Nations engagement and energy system reliability improvements.98 –Skills development: ~AU$600 million to bolster skills development in the clean energy, construction and manufacturing sectors (see Appendix).99 –Planning support: AU$168 million to support faster planning approval decisions for renewable energy projects of national significance. –South Australia: the government has published a green iron and steel strategy, and streamlined approvals for projects in renewables, hydrogen and green iron. It is co-funded two major projects with Canberra: AU$2.4 billion to support Whyalla Steelworks and AU$100 million to develop nearby Port Bonthyon into an export- scale production and export hub for green hydrogen and ammonia.100 –Western Australia: the government has announced AU$500 million for strategic industrial areas to help WA become a “global clean energy powerhouse”. In September 2025 it presented a State Development Bill to streamline the approvals process, which has hampered the rollout of energy transition infrastructure in the Pilbara. Additional government support required Participants proposed a range of additional measures the Australian Government could take to boost the development of the green iron industry: Contracts for difference (CfDs)101 – these could be adopted by the government as long-term contracts to pay a minimum strike price for green commodities, in effect creating “quasi-offtake agreements” that guarantee a revenue floor for producers and provide investors with the necessary confidence to proceed. In the medium to long term, importing countries could further underwrite production through their own CfDs. They could be structured at the level of either hydrogen input or green iron output. Government guarantees – a particularly efficient way to mobilize private capital, as they provide investors with confidence while posing a potentially minimal burden on the government’s budget. They can help developers mitigate key risks in three ways: –Debt guarantees, where the government backs loans for producers, helping lower interest rates. –Offtake guarantees, where the government guarantees offtake at a minimum price (closely linking to CfDs). –Technology guarantees, where the government compensates investors for potential underperformance of production assets. Export credit – the Australian Government could provide direct loans to foreign buyers of green iron, or loan guarantees to banks financing export deals, providing often crucial support to developers. Participants raised the possibility of Export Finance Australia playing this role. Unlocking Asia-Pacific as a First Mover: Australia’s Green Iron Opportunity 34

Unlocking Asia-Pacific as a First Mover 2025