Dr Andrew Forrest AO, executive chairman of Fortescue, has expressed strong support for the Hydrogen Production Tax Credit, emphasising its transformative potential for the green hydrogen industry and the Australian economy.
Dr Forrest highlighted that the multiplier effect of the Hydrogen Production Tax Credit would render the subsidy minimal, yet crucial for fast-tracking green hydrogen projects at a scale capable of establishing a significant domestic industry and market. He stated, “If kept simple and quickly implementable by industry, it will trigger full employment and decades of income growth for Australian workers.”
Dr Forrest emphasised the broad benefits of this initiative, stating, “It will also lower the cost of energy for every single Australian by making green hydrogen competitive with fossil fuels, spurring massive renewable energy projects in sparsely populated regions where employment is needed most.” He commended Prime Minister Albanese and his Government for seizing the opportunity to position Australia as a leader in energy production through the $2 per kilo tax credit for green hydrogen.
Dr Forrest sees green hydrogen, green ammonia, and green iron as pivotal in creating long-term economic opportunities and reducing power prices. He remarked, “Green hydrogen, green ammonia and green iron will create economic opportunities of historical scale into the long-term and help lower power prices permanently.”
Reflecting on Australia’s economic evolution, Dr Forrest noted, “Once Australia was considered as riding on the sheep’s back. Then the resources sector kept the steel in Australia’s economic spine. Kept simple, this incentive will give much greater and longer-term benefits to our economy.” He underscored that this initiative signals the end of the fossil fuel monopoly that has driven up living costs and environmental degradation.
Dr Forrest acknowledged the potential resistance from the fossil fuel sector, which he described as adept at minimising taxes and complicating legislation to protect their interests. He urged the Government to be prepared for lobbying efforts aimed at obstructing the legislation. “The Government should be fully prepared for this lobbying effort, one which will attempt to stop a cheaper competitor for fossil fuels being made right here in Australia,” he warned.
Dr Forrest concluded by emphasising the historic significance of this moment, noting that swift implementation of the incentive could catalyse the establishment of green industries, creating numerous jobs and cutting emissions. “This incentive will fast-track the development of a green iron industry in Australia, bringing massive employment opportunities back to our country, value adding right here in Australia and slashing steel production’s debilitating global emissions.”
Fortescue is already making strides in this area, trialling decarbonisation green hydrogen technology at its Chichester operations. The company is eager to scale up these innovations, particularly at its Christmas Creek Green Iron Plant, which received a Final Investment Decision last November. Dr Forrest asserted, “Fortescue believes that commercial production of green iron in Australia is now possible and must be pursued.”
For more information visit www.fortescue.com
