The Federal Government has released the National Hydrogen Strategy, a blueprint to guide the production, use and export of hydrogen in Australia.
The State, Territory and Federal governments worked together and with industry to finalise the National Hydrogen Strategy. It identifies four objectives, supported by 34 actions and associated enablers to underpin delivery of Australia’s hydrogen industry at scale.
Central to this delivery is the green Hydrogen Production Tax Incentive program and the expanded green Hydrogen Headstart program, which the Federal Government is funding through an estimated $8 billion allocation made in the 2024–25 Federal Budget as part of its Future Made in Australia initiative.
The Federal Government said that both programs have been designed with industry to most effectively drive economies of scale, accelerate investment, reduce the cost gap and help major projects reach financial close faster.
They are expected to unlock $50 billion in private sector investment and see Australia’s annual domestic production capacity exceed one million tonnes of green hydrogen by 2030.
The strategy reflects the developments in technologies, markets and the international policy landscape over the past five years and builds on the early foundations for industry growth, to set out the plan for scaling production and market share.
It anticipates possible annual production targets of 15 million tonnes by 2050, supported by five-yearly milestones.
The Federal Government said that Australia is already well placed to become a world leader, with the International Energy Agency estimating more than 20 per cent of announced hydrogen projects globally are in Australia, with a pipeline valued at more than $200 billion.
Federal Minister for Climate Change and Energy, Chris Bowen, said that the strategy sets a vision for Australia as a global leader with its clean, innovative, safe and competitive hydrogen industry.
“As our industry scales, it will provide further and greater benefit for communities, support broader economic growth and provide a key lever for Australia to reach net zero.
“It sends a clear signal to trading partners about the future marketplace in Australia for hydrogen and hydrogen-based fuels. We’re already seeing the benefits of this through expanded trading agreements with key partners such as Germany.
“Having this blueprint also informs future infrastructure planning and investments across all Australia’s governments, and outlines how Australia can take advantage of the global transition to net zero, by underpinning new domestic manufacturing such as green metals and chemicals, as well as energy exports to our international partners.”
The National Hydrogen Strategy is available here.
Feasibility report for international hydrogen collaboration
In addition to the release of the National Hydrogen Strategy, Researchers at UNSW Sydney have released the first report on the feasibility of a collaboration between Australia and Germany on hydrogen and green metals.
The report forms part of the Federal Government’s Green Metals for Sustainable Steel from Australia and Germany (SuSteelAG) initiative.
The project – a partnership between the Australian Department of Climate Change, Energy, the Environment and Water (DCCEEW) and the German Federal Ministry of Education and Research (BMBF) – aims to explore the potential of creating a sustainable green iron and steel value chain between the two countries.
It builds upon the UNSW-led HySupply study that is investigating the viability of a closer collaboration on renewable hydrogen supply.
Together, Australia and Germany are strengthening opportunities for collaboration in green hydrogen and green metals, helping Australia to build a Future Made in Australia and become a renewable energy superpower.
Germany has set ambitious decarbonisation and hydrogen import targets driving the need to accelerate international partnerships to meet its future green energy ambitions. With its abundant renewable energy and iron ore resources, Australia is well positioned to meet this need.
UNSW is leading the SuSteelAG project, and its first report suggests there is a genuine opportunity for partnership between Australia and Germany in the future of industrial decarbonisation.
A second report will explore the different technology pathways available for green iron and steel production. A third report will perform a techno-economic assessment of a potential green iron and steel value chain between Australia and Germany.
Federal Minister for Climate Change and Energy, Chris Bowen, speaking at the Asia Pacific Hydrogen Summit in Brisbane, said, “With our partners at Germany’s Federal Ministry for Education and Research we have agreed to a new Green Metals for Sustainable Steel initiative.
“This is about how Australian green iron can support the decarbonisation of Germany’s economy. It will investigate decarbonising hard to abate sectors, while maintaining jobs and the productive capacity of core industries.
“I’m pleased that UNSW has been selected to lead a team of academic and industry experts on behalf of Australia’s consortium. All of this feeds into the broader climate cooperation agreement that Australia and Germany are entering in to.
“It builds on our significant bilaterial activity and signals a move to support regular exchanges and joint work across energy efficiency, energy security and transitions, international climate action and cooperation, and of course hydrogen.
“All this is a massive vote of confidence in Australia’s green industry.”
The report was produced by a team of researchers and academics from UNSW’s School of Minerals and Energy Resources Engineering and the Australian Research Council (ARC) Training Centre for The Global Hydrogen Economy.
The UNSW team includes Rahman Daiyan, Iain MacGill, Ismet Canbulat, Serkan Saydam, Peter Ellersdorfer and Muhammad Haider Ali Khan.
Joint project lead, Dr Daiyan, said, “Australia’s collaboration with Germany in developing a hydrogen and green minerals export industry is a pivotal step towards positioning Australia as a renewable energy superpower.”
Fellow joint project lead, Professor MacGill, said, “The SuSteelAG project marks a significant milestone in creating a sustainable green iron and steel value chain, which will play a crucial role in meeting Germany’s future demand for low-carbon steel.”“
UNSW’s Head of School of Minerals and Energy Resources Engineering, Ismet Canbulat, said that the study highlights opportunity in decarbonisation of global steel production.
“By leveraging Australia’s rich mineral resources and renewable energy capabilities, and Germany’s advanced industrial technologies, this partnership has the potential to redefine sustainable steel production on an international scale.”
Featured image: Fahroni/shutterstock.com.
