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A global producer of hydrogen

Australia is set to become a major global producer of hydrogen. This is thanks to:

  • abundant supplies of solar and wind power
  • support for the hydrogen industry from state and federal governments
  • established energy-export supply chains to Asia.

According to the International Energy Agency (IEA), Australia will join the Middle East, Latin America, and North Africa as one of the four principal net exporters of hydrogen by 2050. (Source IEA, World Energy Outlook 2023, page 170).

The rapid expansion of hydrogen production in Australia creates multiple opportunities for investors and for buyers.  

Australia’s pipeline of hydrogen projects is the largest in the world.

We have up to A$300 billion of potential hydrogen investments (Source: Department of Climate Change, Energy, the Environment and Water, Australia’s National Hydrogen Strategy, 2023). This includes projects for domestic use and large-scale exports.

For investors, our global competitive advantage rests on four factors:

  • The combination of vast solar and wind resources. Australia’s generating capacity from renewables is set to rise rapidly over the coming decade.
  • World-leading hydrogen and energy regulation. This includes industry-leading certification and interoperability.
  • Our reputation as a safe destination for investors. Australia’s resources sector is already our largest export sector — thanks mostly to overseas investors.
  • Ready export markets. Australia is an established energy supplier to fast-growing economies in Asia. We are developing supply chains through multiple international partnerships.

Australia has a strong track record for building new energy exports. Over the past two decades, we have grown our liquefied natural gas (LNG) export industry into one of the world’s biggest. Today, we’re on track to become a renewable energy superpower.

Australia is a natural supplier of hydrogen to industrial economies. We have established the necessary agreements to become a global supplier. Our international agreements cover:

  • Germany
  • Japan
  • Korea
  • The Netherlands
  • India
  • Singapore
  • The United Kingdom
  • The United States.

These strategic markets align with forecast demand. The IEA predicts that by 2050, Korea and Japan will account for 40% of the world’s global hydrogen imports. (Source IEA, World Energy Outlook 2023, page 249).

Hydrogen Equipment, Technology and Services (HETS) report

Incentives, grants and support

The Australian Government is funding the development of a large, domestic hydrogen industry.

  • The Australian Government has established the $2 billion Hydrogen Headstart initiative. The project aims to scale up green hydrogen projects in Australia.
  • The Clean Energy Finance Corporation operates a $300m Advancing Hydrogen Fund.
  • The Australian Regional Hydrogen Hubs Program is investing more than $500 million to support the development of hydrogen hubs in regional Australia. This investment will be used to fund hubs, and for design and development studies.

The Australian Government is developing a Guarantee of Origin scheme. This is a mechanism to track and verify emissions associated with hydrogen and other products made in Australia.

Snapshot


Australia's hydrogen industry

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Exporter

In 2022, Australia became the first country in the world to export liquified hydrogen.

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Pipeline

Australia’s pipeline of announced hydrogen projects topped 100 in 2022, which represented A$230 to $300 billion of potential investment.

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Green hydrogen production

Around 3 per cent of Australia’s land is suitable for green hydrogen production, based on access to renewable electricity and water supplies.

Sources:

  1. Reuters, World’s first hydrogen tanker to ship test cargo to Japan from Australia, January 2022
  2. Department of Climate Change, Energy, the Environment and Water, State of Hydrogen 2022
  3. Australia’s National Hydrogen Strategy 2019

Australia's National Hydrogen Strategy

Our Government wants Australia to become a global hub for green hydrogen production and export.

  • Up to A$3 billion of the A$15 billion National Reconstruction Fund (NRF) will be set aside to finance renewables and low emissions technologies. This includes funding for hydrogen electrolysers and fuel switching.
  • Our lead science agency has created a Hydrogen Industry Mission. It aims to build a commercially viable hydrogen industry with export value chains by 2030. This includes reducing the cost of hydrogen production to under A$2 per kilogram.
  • The A$1.9 billion Powering the Regions Fund supports the decarbonisation of existing industries. It will also be used to create new clean energy industries and jobs

Australia has a strong foundation of hydrogen R&D skills and infrastructure.

We rank third in the world for publishing hydrogen research, according to the Normalised Citation Impact (NCI). It ranks first in the world for research on hydrogen storage and use (Source: CSIRO, Hydrogen Research, Development and Demonstration, December 2019).

The Commonwealth Scientific and Industrial Research Organisation has created HyResource. This maps more than 100 hydrogen-related industry projects in development in Australia. It also hosts a dataset of hydrogen support programs and initiatives.

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