Post: Australia’s Federal budget 2024-25

Australia’s Federal Budget 2024-25  

With the $22.7B “Future Made in Australia” package as a centrepiece, the 2024-25 Australia Federal Budget includes significant initiatives relating to renewable energy, hydrogen, critical minerals, green metals, low carbon liquid fuels and clean energy technology.  

Unveiled on 14 May, the budget aims to attract investment in key industries for the energy transition and make Australia “a renewable energy superpower” as well as add value to the resources sector, particularly critical minerals, and strengthen economic resilience and security. 

The government’s flagship Budget item was the $22.7B Future Made in Australia package designed to supercharge Australia’s clean energy transition. A significant $19.7B of this package will be dedicated to accelerating investment in “priority” industries, including green hydrogen, green metals, low carbon liquid fuels, refining and processing of critical minerals, and manufacturing of clean energy technologies including in solar and battery supply chains.  

$1.7B has been allocated to the Future Made in Australia Innovation Fund. Managed by the Australian Renewable Energy Agency (ARENA) this will focus on innovation, commercialisation, pilot and demonstration projects and early stage development in priority sectors, including green hydrogen, green metals, low carbon liquid fuels and clean energy technology manufacturing such as batteries. In furthering its focus on net zero innovation, the Government announced a separate funding package of $1.9B to ARENA to support core investments. This funding includes assistance with the development, demonstration, commercialisation, manufacture and deployment of renewable energy technologies, and is in addition to extensions to ARENA’s funding for 10 years under its administration of the Future Made in Australia Innovation Fund. 

$1.5B has been allocated to support the manufacturing of clean energy technologies. This includes $1B to establish the Solar Sunshot program and over $500M to support battery manufacturing in Australia through the Battery Breakthrough Initiative. The government will provide $134.2M to strengthen and accelerate approval processes for renewable energy projects of “national significance”. This includes $19.9M to process assessments for priority renewable energy projects identified through a nationally agreed list,  

$18.1M has been allocated over six years for initiatives to expand Australia’s green metals industry. This forms part of a clear budget focus on the growth of the green metals industry at every stage of the supply chain. Funding will support industry and research collaboration, exploration of opportunities to improve the use of Australian scrap metal and undertaking of further consultation on incentives to support the production of green iron, steel, alumina and aluminium.