About the RFS

Overview of the Renewable Fuel Scheme 

This page explains how the Renewable Fuel Scheme (RFS) works. The RFS is a scheme under the Energy Security Safeguard.  It is a market-based certificate scheme and creates financial incentives to support the production of green hydrogen. 

How the scheme works

The RFS works by creating a market for Renewable Energy Certificates (RECs). 

Certificates for producing green hydrogen

Accredited Certificate Providers will be able to create RECs. The number of RECs they can create depends on how much green hydrogen they produce.

Creating a market for Renewable Energy Certificates

RECs are assets with real market value. Businesses can buy and sell them on the energy market. Scheme participants (natural gas retailers and large users who do not buy gas through a retailer) buy RECs. They can surrender these to meet their individual energy targets.

Incentives leading to lower emissions

• Green hydrogen producers get revenue from selling the RECs they create.
• Scheme participants can purchase and surrender certificates to offset liabilities and meet their energy targets.
• Local demand for green hydrogen reduces emissions in NSW.

Governing the scheme

IPART administers and regulates the RFS. 

The NSW Department of Climate Change, Energy, the Environment and Water (NSW DCCEEW) develops and maintains the legislation that governs the scheme.

The RFS will be integrated with the Commonwealth Government’s Guarantee of Origin scheme (GO scheme). The scheme is voluntary. It will allow participants to create Product GO certificates for the clean energy products they produce (including green hydrogen). ACPs will need these certificates to create RECs.