ESG Today writes that the new investments were announced following the release of the budget for 2024-2025 and part of the funding will be supplied by the Australian Renewable Energy Agency (ARENA), which supports the commercialization of the required technologies that will support the transition towards a net-zero power system.

Currently, the planet produces around 90 million tons of hydrogen per year, although most of it is generated from fossil fuels, which is the least desirable form of hydrogen out there. Green hydrogen production, which uses renewable energy to create the electricity required for the electrolysis process, will require substantial investments, not only for the production itself, but also for transporting and implementing the fuel.

Part of the new budget allocated by Australian officials will go towards a hydrogen production incentive, which implies offering 2 USD for each kilogram of hydrogen produced between 2027 and 2040. At the same time, ARENA officials announced a 1.7 billion USD funding to launch an innovation-focused project for climate technologies, such as green metals, batteries and low-carbon liquid fuels.

Australia's Treasurer Jim Chalmers said that "this plan will help Australia build a stronger, more diversified and more resilient economy powered by clean energy, to create more secure, well‑paid jobs and encourage and facilitate the private sector investment required to make the most of this opportunity."