Australian government allocates $9.2b to boost renewable energy sector

The amount forms part of the $15.1b Future Made in Australia package.

The Australian Government has allocated $9.2b (A$13.89b) under its 2024-25 budget to support its goal to become a “renewable energy superpower” over the next decade.

This is part of the around $15.1b (A$22.7b) Future Made in Australia package that wants the country to become “an indispensable part of the global economy,” Minister of Climate Change and Energy Chris Bowen said in a statement.

To support the clean energy industries manufacturing sector, Australia is providing $3.4b (A$5.1b) to the Australian Renewable Agency (ARENA), of which $1.1b (A$1.7b) will be dedicated to the Futute Made in Australia Innovation Fund to secure private capital in new industries such as green metals and low carbon liquid fuels.

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Around $997m (A$1.5b) will be used to build solar and battery manufacture capacity, and $1.3b (A$1.9b) “to recharge ARENA’s core mission of developing and deploying new technologies.

For the renewable hydrogen sector, $4.5b (A$6.7b) will be allocated over the decade for a new production tax incentive of $1.33 (A$2) per kilogram from 2027-28. Around $1.3b (A$2b) will be allocated for a new round of the Hydrogen Headstart programme.

The country will also provide $60.5m (A$91m) to the clean energy workforce.

$1 = A$1.50