Development of the clean hydrogen industry in Australia – a regulatory and fiscal roadmap for the fuel of the future
James O’Reilly A C , Clare Pope B and Amy Lomas BA PwC, Level 23, 480 Queen St, Brisbane City, Qld 4000.
B PwC, Level 15, 125 St Georges Terrace, Perth, Western Australia 6000.
C Corresponding author. Email: james.oreilly@pwc.com
The APPEA Journal 61(2) 454-457 https://doi.org/10.1071/AJ20190
Accepted: 30 April 2021 Published: 2 July 2021
Abstract
As Australia moves toward decarbonisation across all of its sectors, the production and use of clean hydrogen have emerged as a clear alternative. It is versatile, storable, transportable and, ultimately, a fuel source that is carbon free. Funding and policy announcements across State and Federal Governments for the hydrogen industry have built momentum in recent years, with projects already underway to address new uses for hydrogen, which are looking to improve the economics of production to meet the expected future demand not only here in Australia but also internationally. So, how can Australia lead the global shift to hydrogen and what is the regulatory and fiscal infrastructure needed to drive the development of the hydrogen industry in Australia? The key issues to be considered include the following:
The need for government funding for development of the future uses of hydrogen to help build confidence and stimulate investment across the supply chain to enable commercialisation;
Establishing an attractive investment environment for projects in Australia – not only the production of hydrogen but also for the supply chain infrastructure;
Development of a certification scheme and Australia’s role in setting regional and/or international standards and
Policy settings, including the necessary regulatory and fiscal reforms, relevant to support the period of transition to green hydrogen.
Keywords: hydrogen, energy transition, fiscal policy, regulatory framework, tax incentives, decarbonisation.
James O’Reilly leads PwC Brisbane’s tax practice and is PwC’s Global Tax Leader for Energy, Utilities and Mining. He has significant experience in assisting clients in the Australian Petroleum and Mining industries managing the tax implications associated with proposed investments, including leading a range of tax structuring, tax modelling and tax due diligence engagements. More broadly, areas of focus include managing the tax implications associated with the various stages of a resource projects life cycle (i.e. exploration, development, operation and cessation), the establishment of joint ventures and financing arrangements. James has a Bachelor of Commerce and Bachelor of Law both from the University of Queensland and a Graduate Diploma in Legal Practice from Queensland University of Technology. He is an associate of the Institute of Chartered Accountants and a solicitor of the High Court of Australia. |
Clare Pope is a partner with PwC in the Perth office and is an experienced corporate lawyer and has nearly 20 years of experience advising clients on acquisitions, disposals and the development of projects across Oil & Gas, mining and power and renewables sectors. Clare is admitted to practice in England & Wales and Western Australia. Clare’s experience includes drafting and advising on public markets transactions, private and public markets sale and purchase agreements, conducting due diligence for vendors and purchasers, advising on supply agreements, royalty agreements, LNG offtake agreements, project development, power purchase agreements, commercial contracting, infrastructure access and sharing agreements and other resources and infrastructure-related documentation. Clare is recognised in Best Lawyers, Doyles Guide for Energy and Resources, Asia Pacific Legal 500 for Corporate and M&A and IFLR for Energy and Infrastructure. |
Amy Lomas is an economist and a director in PwC’s Infrastructure team who brings to the development of public and economic infrastructure robust problem definition and the explicit goal of enhancing public value. In doing this, Amy’s work supports high-quality infrastructure investment decision making that helps to make our communities better places to live. She has 20 years of experience in various consulting and public sector roles in Western Australia. This includes as Executive Director Strategic Policy at the former Department of State Development where she was responsible for a range of state development policies relating to upstream energy supply, infrastructure, competition, royalties and resource development. She held various positions over 10 years in the Department of Treasury, including leading the WA Government’s contribution to the design of a national emissions trading scheme; Director of Treasury’s Economic and Revenue Forecasting and as an advisor to former Treasurer, the Hon Eric Ripper MLA. She joined PwC in 2018 and works with a range of public and private clients on complex and strategic project approvals, business case development and analytical frameworks for assessing infrastructure requirements. Amy is a director of the Pilbara Ports Authority, Vice Chair of the board of Treetops Montessori and International Baccalaureate School and a member of the Economic Society of Australia. She holds a Bachelor of Economics with Honours from Murdoch University and is a member of the Australian Institute of Company Directors. |
