Here’s a detailed and easy-to-understand article based on the JETRO Biznews article “NSW州の案件も採択、水素価格差支援策は第2ラウンドへ” published on July 18, 2025, at 01:10:
Australia’s Hydrogen Price Gap Support Program Moves to Round 2, Benefitting NSW Projects
Tokyo, Japan & Sydney, Australia – July 18, 2025 – The Australian government’s ambitious Hydrogen Price Gap Support (HPGS) program has officially entered its second round of applications, following the successful selection of initial projects. Notably, projects based in New South Wales (NSW) have also been chosen, indicating a broader geographical reach for this vital initiative aimed at accelerating the development of Australia’s clean hydrogen industry.
The HPGS program is a cornerstone of Australia’s strategy to become a global leader in clean hydrogen production. Its primary objective is to bridge the “price gap” between the cost of producing clean hydrogen and the price of existing fossil fuels. By providing financial support, the program aims to make clean hydrogen more competitive and economically viable for various industrial applications.
What is the Hydrogen Price Gap Support Program?
In simple terms, the HPGS program acts as a financial incentive for hydrogen producers. Producing clean hydrogen, especially through electrolysis powered by renewable energy, is currently more expensive than producing hydrogen from fossil fuels. This cost difference is the “price gap.”
The Australian government, through this program, offers a subsidy or a “top-up” payment to hydrogen producers. This payment helps them sell their clean hydrogen at a price comparable to or lower than fossil fuel-based hydrogen, making it an attractive option for businesses looking to decarbonize their operations. The ultimate goal is to stimulate demand and encourage investment in clean hydrogen infrastructure.
Key Developments and the Significance of NSW’s Inclusion:
The announcement that NSW projects have been selected for the program is a significant development. While specific project details are typically kept confidential at this stage, the inclusion of NSW demonstrates the program’s commitment to fostering hydrogen development across different Australian states.
New South Wales, being Australia’s most populous state and a major industrial hub, has the potential to be a significant consumer of clean hydrogen. Its participation and the selection of NSW-based projects suggest that the HPGS program is effectively reaching key economic centers and is poised to drive demand for clean hydrogen in sectors like manufacturing, mining, and heavy transport within the state.
Moving to Round 2: Continued Momentum for Clean Hydrogen
The commencement of the second application round signifies the Australian government’s continued dedication to scaling up the clean hydrogen sector. This phased approach allows the government to assess the effectiveness of the initial funding, gather feedback from industry, and refine the program for broader impact.
The success of the first round and the progression to a second round are positive indicators for the future of clean hydrogen in Australia. It suggests that the program is attracting credible project proposals and is on track to meet its objectives of:
- Reducing the cost of clean hydrogen: By directly addressing the price gap, the program makes clean hydrogen a more attractive investment.
- Stimulating demand: As clean hydrogen becomes more affordable, industries will be more inclined to adopt it, creating a robust domestic market.
- Boosting investment: The program provides the certainty and financial backing that investors need to commit to large-scale hydrogen projects.
- Supporting emissions reduction: By enabling the transition to clean hydrogen, the program plays a crucial role in Australia’s efforts to meet its climate targets.
Broader Implications and Australia’s Hydrogen Ambitions:
Australia has set ambitious goals for its hydrogen industry, aiming to become a major exporter and domestic user of clean hydrogen. The Hydrogen Price Gap Support program is a critical tool in achieving these ambitions. By making clean hydrogen cost-competitive, the program not only supports decarbonization efforts within Australia but also positions the country as a reliable and cost-effective supplier of clean hydrogen to the global market.
The JETRO (Japan External Trade Organization) report highlights the ongoing progress and the strategic importance of Australia’s clean hydrogen initiatives. Japan, a major importer of energy resources, is keenly observing and engaging with Australia’s hydrogen development, with the aim of securing a stable supply of clean hydrogen for its own decarbonization goals.
As the HPGS program moves into its second round, the Australian government is expected to continue working closely with industry stakeholders to ensure the program’s success and to accelerate the journey towards a clean hydrogen economy. The inclusion of NSW projects further reinforces the national scope of this crucial initiative.
The AI has delivered the news.
The following question was used to generate the response from Google Gemini:
At 2025-07-18 01:10, ‘NSW州の案件も採択、水素価格差支援策は第2ラウンドへ’ was published according to 日本貿易振興機構. Please write a detailed article with related information in an easy-to-understand manner. Please answer in English.