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Australia to Charge Royalties for Natural Hydrogen Projects

Updated: Nov 23

Western Australia is engaging in industry consultations for its Renewable Hydrogen Strategy to 2030, with a focus on hydrogen royalties. While natural hydrogen will attract a royalty, green hydrogen produced from renewable energy-powered electrolysis will not. This aligns with South Australia's approach, where a 10% royalty is levied on hydrogen extracted from underground formations. The concept of natural hydrogen is picking up due to its low cost of production, but this royalty puts the attractiveness of low-cost natural hydrogen in jeopardy.

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