Trials start for hydrogen Guarantee of Origin scheme

The Morrison Government is taking the next steps to develop and implement a world-leading hydrogen Guarantee of Origin (GO) scheme through the commencement of a trial phase with industry. 

The Government will work with hydrogen players to test the design of a scheme that aims to assure the source of locally-produced hydrogen and its derivatives. 

The scheme will measure and track emissions from hydrogen production, as well as the type of technology used to manufacture the hydrogen. This will allow future customers to make informed choices about the source and emissions associated with the hydrogen they buy. 

Outcomes from a discussion paper, released by the Government in June 2021, are now published online. The trial process will test some of the key issues identified through the consultations before the scheme is finalised. 

Minister for Industry, Energy and Emissions Reduction Angus Taylor said the trials will be essential to ensuring that a GO scheme can help Australia’s emerging hydrogen industry scale up and seize global opportunities. 

“An Australian Guarantee of Origin scheme will promote our local, comparative advantages, while placing Australia in a position to shape the global trade of hydrogen,” Minister Taylor said.  

“Industry feedback indicated that a local scheme must be internationally aligned and accepted by our trading partners. This will enable customers who buy Australian hydrogen in the future to make an informed choice and easily identify the product best suited to their needs.

“Continuing our close work with industry through design and trials is critical to ensuring that an Australian Guarantee of Origin scheme is fit for purpose to support industry growth and attract investment.”

The trials will see industry members with operating or well-advanced pilot projects for hydrogen invited to test the practical application of methodologies for carbon emissions over an 18-month period. 

This will include projects across a range of production methods, including renewable electricity, biomethane, and coal and gas with substantial carbon capture and storage. 

The design of the scheme is being informed by work through the International Partnership for Hydrogen and Fuel Cells in the Economy (IPHE) to agree an international methodology to track carbon emissions from hydrogen production. 

The Department of Industry, Science, Energy and Resources and the Clean Energy Regulator will lead the voluntary trials, supported by $9.7 million funding commitment in the 2021-22 Budget. This forms part of the more than $1.2 billion already committed by the Government to accelerate the development of an Australian hydrogen industry.

Clean hydrogen could directly support 16,000 jobs by 2050, plus an additional 13,000 jobs from the construction of related renewable energy infrastructure. Australian hydrogen production for export and domestic use could also generate more than $50 billion in additional GDP by 2050.

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Media contact:
Minister Taylor’s office 02 6277 7120