The Renewable Fuel Scheme was established under the Energy Security Safeguard and the NSW Hydrogen Strategy in December 2021 to encourage the production of green hydrogen in NSW.
We are continuing to develop the framework of the Renewable Fuel Scheme. We expect this scheme will commence in 2024 and run until 2044.
Our aim is to support industry to grow new supply chains to improve the affordability, reliability and sustainability of green hydrogen in NSW. This will also help our industries remain competitive as international markets decarbonise, and become global leaders in green hydrogen production.
Green hydrogen is hydrogen produced using renewable energy that does not produce emissions. In contrast, most hydrogen today is produced from natural gas.
Investing in the production of green hydrogen will help NSW shift to net zero emissions by 2050. It will also help us
- drive economic growth
- improve air quality
- create new jobs
- improve our energy security.
Like the Energy Savings Scheme (ESS) and Peak Demand Reduction Scheme (PDRS), the Renewable Fuel Scheme is a certificate scheme.
The scheme sets a target for green hydrogen production. It has a production target of 90,000 gigajoules in 2024, increasing to 8 million gigajoules by 2030. Natural gas retailers and large users will need to buy or create certificates equivalent to their share of the production target. Certificates will be created by green hydrogen producers. Each certificate is anticipated to represent a gigajoule of green hydrogen produced.
The NSW Hydrogen Strategy explains in more detail how we will build a green hydrogen industry in NSW.
Get involved
We are currently developing the Renewable Fuel Scheme regulation and rule. This includes defining the eligible activities, exemption framework, administrative arrangements, and calculation methods. Consultation with our industry stakeholders will help us develop the scheme.
We look forward to collaborating with industry through targeted research, stakeholder engagement and public consultation. We will provide regular updates about these activities on our website and via email.
If you have any questions about the Renewable Fuel Scheme, email us at renewablefuelscheme@environment.nsw.gov.au.
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