Australia was the third most attractive destination for foreign direct investment (FDI) into renewable energy in 2022, according to a new report from fDi Intelligence.
The UK was the top-ranked country for attracting renewables FDI, followed by Egypt.
Australia’s large-scale green hydrogen projects
Australia’s growing number of green hydrogen projects was a major driver of its strong ranking. The fDi report ranked Australia third globally for attracting investment in green hydrogen.
Australia had more than 100 green hydrogen projects in 2022, double the number in 2021. Its project pipeline increased in value from A$230 billion in 2021 to A$300 billion in 2022. Australia also has around 40% of all announced global hydrogen projects.
Major green hydrogen commitments include:
South Korea’s POSCO plans to invest A$40 billion in Australia’s green hydrogen industry
A Japanese consortium has committed A$2.35 billion in the Hydrogen Energy Supply Chain, the world’s first liquefied hydrogen supply chain
Spain’s Iberdrola and Australian hydrogen developer ABEL Energy are planning to build a green hydrogen and green methanol production plant in Tasmania.
Find out more about Australia’s A$40 billion green hydrogen industry in the State of Hydrogen 2022 report.
Wind, solar and batteries on the rise
The fDi report also ranked Australia in the top 10 for attracting FDI in wind, solar and batteries.
French renewables giant Neoen is currently building its fifth big battery in South Australia. The company has invested more than A$3 billion to date in Australian renewables since 2012. It has 17 large-scale renewable energy projects in operation or under construction. Around 35–40% of its global installed capacity is in Australia.
Other wind, solar and battery projects include:
Denmark’s European Energy has made a major investment in the 3,600 MW Pacific Solar Hydrogen Project in Gladstone, regional Queensland.
Norwegian oil and offshore wind giant Equinor is co-developing a 1GW wind farm off the coast of north-east Tasmania.
The US’s Recharge Industries is building a lithium-ion battery factory in Geelong, regional Victoria.
About the Global Renewable Energy Leaders report
fDi’s inaugural Global Renewable Energy Leaders report looks at 3 main indicators to identify the world’s most successful renewable energy FDI destinations.
These indicators were:
the number of announced FDI projects
their capital expenditure
estimated jobs creation.
The indicators were sourced through greenfield investment monitor fDi Markets.
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