Document ID: chunk:federal_register_of_legislation:F2023L01023:body:0:p7
Version: federal_register_of_legislation:F2023L01023
Segment Type: other
Provision Reference: 
Character Range: 16677–19666

in concessional finance to support the growth of a clean, innovative, safe and competitive Australian hydrogen industry. The Advancing Hydrogen Fund will focus on projects where there is State or Territory Government financial support or policy alignment with the National Hydrogen Strategy.
Investment factors
Consistent with the obligation to deliver on the object of the Act, the Board must have regard to positive externalities and public policy outcomes for its investments.
In considering investment proposals under the Advancing Hydrogen Fund, the Board shall prioritise projects that promote the objectives of the National Hydrogen Strategy and that focus on 1 or more of the following:
        (a)   advancing hydrogen production projects;
        (b)   developing export and domestic hydrogen supply chains, including hydrogen export industry infrastructure;
        (c)   establishing hydrogen hubs;
        (d)   other projects that assist in building domestic demand for hydrogen.
The Board must take into account the advice of the Department when considering these factors.
Benchmark rate of return
In relation to investments made for the purposes of the Advancing Hydrogen Fund, the Board must target an average return of at least the 5-year Australian Government bond rate +1 per cent per annum over the medium to long term. Performance against this benchmark will be measured before operating expenses and any concession charges, such as impairment or mark-to-market adjustments resulting from any concessional component.
Risk level
In targeting the benchmark return for the Advancing Hydrogen Fund and operating with a commercial approach, the Board must seek to develop a portfolio that in aggregate has an acceptable but not excessive level of risk, having regard to the terms of the Act and the focus on particular areas identified in this subsection.
The level of risk deemed acceptable by the Board may be higher for the Advancing Hydrogen Fund than for the General Portfolio. This reflects the differences in the types of investments being made for the purposes of the Advancing Hydrogen Fund. The Board must periodically review its investment practices for the purposes of managing the risk of the Advancing Hydrogen Fund portfolio over time and must advise the responsible Ministers of specific measures taken in this regard.
      (3)    Powering Australia Technology Fund:
Funding
The Board shall make available up to $500 million for investments to support the growth or expansion of clean energy technology projects, businesses and/or entities (of any form including, without limitation, companies and funds) to facilitate the development, commercialisation or take up of clean energy technologies.
The Board must aim to leverage at least $500 million from the private sector across the portfolio of investments made under this fund.
Investment factors
Consistent with the obligation to deliver on the object of the Act, the Board must have regard to positive