Licensing and approvals

Licensing and approvals happen in three stages:

Stage 1 - Environmental assessment and approval of environmental objectives
Stage 2 - Licensing
Stage 3 - Operational management plan and approval

The processes vary based on land type:

Activities on designated land - pastoral or crown lands and/or state waters
Activities on-designated lands - freehold land

Hydrogen and Renewable Energy Act licensing process

Stage 1 - Environmental impact assessment and approval of Environmental Objectives

Environmental impact report
Statement of environmental objectives
Environmental impact assessment criteria
Consultation

Environmental impact report

Licensees must prepare an environmental impact report for proposed authorised operations. This document must address the project’s potential environmental impacts and outline the extent to which these impacts can be managed.

An environmental impact report must -

take into account the environment, cultural and other values relevant to the assessment
take into account risks to public health and safety inherent in the authorised operations
contain enough information to allow an informed assessment of the operations’ likely environmental impact
include an assessment of the operation’s environmental impact against the environmental impact assessment criteria
be prepared in accordance with the requirements of the regulations.

The environmental impact report must also contain:

a description of the proposed authorised operations and location
a description of specific elements of the environment that are expected to be affected by authorised operations, with particular reference to the environment and existing land uses
biodiversity data of the land likely to be affected by authorised operations
an assessment of the cultural and heritage values of Aboriginal and Torres Strait Islander persons and other persons likely to be affected by authorised operations.
public health and safety risks of the operations
if relevant and required by the Minister, an assessment of the continuity of hydrogen supply
information on consultation that has occurred in accordance with the approved consultation plan, including specific details about relevant issues that have been raised and any response to those issues (but not including confidential information).

Environmental impact assessment criteria

Applicants must provide an environmental impact assessment (EIA) to ensure that any proposed operations responsibly manage adverse environmental impacts. This must reduce environmental damage and as far as possible eliminate significant long-term environmental damage.

The Minister must determine criteria for assessing authorised operations’ environmental impact.

Providing strong environmental impact assessment criteria ensures assessments are consistent, informed, transparent and auditable.

DEM is currently developing a draft environmental impact assessment criteria framework and will consult with stakeholders before the documents are gazetted.

Statement of environmental objectives

Environmental objectives are measurable targets for environmental protection. A statement of environmental objectives (SEO) provides transparency about the licensee’s required environmental performance. The SEO is developed through an open, consultative process, based on information provided in the environmental impact report.

A SEO must:

state the environmental objectives to be achieved during authorized operations
include criteria for assessing achievement of the objectives, known as leading performance criteria
address all matters contained in the environmental impact report
list immediately reportable incidents and reportable incidents, within the meaning of section 47
include, as an objective, the rehabilitation of land adversely affected by authorised operations

Additionally, an SEO must include:

what will be measured and the form of the measurements
measurement locations or how those locations will be determined
measuring or monitoring frequency
details of what is considered achievement of the relevant environmental outcome, including inherent measurement errors
if required by the Minister, provisions for assessing the ongoing fitness for purpose of facilities, plant, equipment, machinery or other infrastructure and management systems
if relevant—
- how information will be gathered and timing
- conduct and timing of management system audits.
any background or control data to be used, or the manner for acquiring this data

The SEO must be reviewed after 5 years and submitted within 6 months of the five-year term.

A review must address changes that have occurred since the previous SEO or review in:

environmental information or knowledge
community expectations about relevant environmental issues
land use
operational practices (e) other matters determined to be relevant by the Minister.

EIRs and SEOs must:

be balanced, objective and concise;
state any limitations that apply, or should apply, to the use of the information and material
identify anywhere there is a significant lack of relevant information or degree of uncertainty
identify any assumption’s sensitivity to change and risks if an assumption is incorrect
be presented in a way that allows the assessment team to understand how conclusions have been reached and make an informed decision on the level of environmental impact of a particular activity without needing additional technical advice.

EIRs and SEOs are available on the Hydrogen and Renewable Energy Register.

Licensee EIR and SEO consultation

The licensee must prepare a consultation plan that-

states the day on which consultation is due to commence
includes a list of the following persons to be consulted as identified by the licensee:
relevant landowners of the land to which the report relates
any Recognised Aboriginal Representative Body—
- of the area of land to which the report relates; or
- of a specific Aboriginal site, object or remains on the land to which the report relates
any traditional owners of Aboriginal sites or objects on the land to which the report relates, if then land is not Native Title land and there is no Recognised Aboriginal Representative Body
any affected agency or instrumentality of the Crown;
each council within the proposed release area
the Outback Communities Authority if any part of the proposed release area falls outside of council areas

The consultation plan must

Describe the method of engagement to be used in consultation, including how the licencee intends to respond to relevant issues raised as a result of consultation with the persons listed in the consultation plan.
Focus the engagement on the environmental objectives and assessment criteria necessary to be achieved to demonstrate that any potential consequences of the proposed authorised operations will be adequately managed and controlled
Identify all relevant parts in the environmental impact report or statement of environmental objectives that are to be consulted on.
Comply with any other requirement specified by the Minister to the licensee.

Consultation plans must be submitted to DEM at least 10 days before consultation is due to commence.

Consultation by the Minister

Once satisfied that EIR and SEO documents are compliant, DEM as delegate to the Minister, will publish them for public consultation, inviting written submissions for a minimum 30 business days.

Any submissions received during this consultation will be provided to the licensee.
DEM may require the licensee to respond to any matter raised in any of the submissions. Irrelevant or offensive submissions will not be considered.

Written submissions will be made publicly available on the Hydrogen and Renewable Energy register.

Stage 2 – Licensing

Individuals or companies must apply for the appropriate licence to perform the following hydrogen and renewable energy-related (regulated) activities:

(a) generating hydrogen for a commercial purpose

(b) exploring for a renewable energy resource

(d) an infrastructure activity

(e) an associated infrastructure activity

(f) an activity of a kind prescribed by the regulations.

Regulated activities include all operations reasonably necessary for, or incidental to, undertaking that activity.

For detailed information on the processes and requirements of obtaining a licence, including licence types under the Hydrogen and Renewable Energy Act 2023, please see:

Stage 3 – Operational management plan

A licensee must not commence authorised operations unless an approved operational management plan (OMP) is in place for the licence.

An OMP must:

specify the authorised operations proposed
specify the SEO to which the plan applies
specify how proposed authorised operations will be managed, including details of the management systems and controls that will ensure compliance with the relevant statement of environmental objectives
contain any other information and comply with any other requirements as prescribed by the regulations

The OMP must set out:

(a) policies that address the achievement of regulatory requirements and objectives

(b) resources that will be applied to effectively implement the plan

(i) undertaking authorised operations; and

(ii) achieving compliance with regulatory requirements.

(d) processes for managing physical, operational, procedural or organisational changes in authorised operations.

(e) risk management systems including—

(i) controls to eliminate or reduce risks associated with authorised operations,

(ii) systems to ensure the implemented controls will be clearly defined and achieved,

(f) competency, training (including ongoing training), induction and supervision practices and procedures

(g) mechanisms for consulting and communicating with external parties

(h) systems to identify, investigate and report incidents

(i) emergency practices and procedures

(j) monitoring, evaluation, audit and review procedures for systems

(k) methods for complying with the statement of environmental objectives

(l) operations commencement date; and

(m) any other relevant matter determined by the Minister.