Australia’s National Hydrogen Strategy takes a major leap forward

The Murchison Green Hydrogen (MGH) Project will produce green hydrogen to help reduce the world’s reliance on fossil fuels, which are a major contributor to climate change.

Australia’s abundance of natural wind and solar resources presents a significant opportunity for Australia to lead the global development of a new, green hydrogen industry. MGH is the most advanced gigawatt-scale, fully integrated green hydrogen project in Australia, encompassing power generation through to hydrogen export, and is set to be a key contributor to helping Australia realise this vision.

Recent industry announcements, including the 2024 National Hydrogen Strategy, the Future of Australia-Germany Hydrogen Cooperation and the Net Zero Economy Authority Bill 2024, indicate the extensive steps being made by the Federal Government to move the industry forwards.

Continue reading for a breakdown of these recent announcements.

The 2024 National Hydrogen Strategy

Australia’s 2024 National Hydrogen Strategy was released in September 2024. The new Strategy, which is an update to the original published in 2019, aims to position the country as a global leader in hydrogen production, use, and export and was informed by the Review of the National Hydrogen Strategy announced in February 2023. This review was aimed at ensuring that the Strategy will effectively drive domestic decarbonisation and deliver widespread economic benefits.

The Strategy itself is designed to develop an innovative and competitive hydrogen industry that benefits Australia’s economy, supports its global and national net zero transition, and establishes the country as a major global player in the hydrogen space.

“This Strategy sets a vision for Australia as a global leader with its clean, innovative, safe and competitive hydrogen industry.” – Chris Bowen, Minister for Climate Change and Energy

According to the International Energy Agency (IEA), more than 20% of announced hydrogen projects across the world are located in Australia, with a cumulative value of more than AUD$200 billion.

Outside of the strategic objectives to achieve cost-competitive hydrogen supplies and capitalise on demand for decarbonisation across the globe, there will be a focus on promoting community awareness and associated benefits.

A key objective of the strategy is to “Establish trade at scale and leverage purposeful partnerships”. This strategy objective highlights the following:

• Australian hydrogen can be exported as an energy carrier to countries less able to generate renewable electricity.
• Potential to capture a share of developing international hydrogen markets represents a significant economic opportunity for Australia.
• Hydrogen will play a role in decarbonising existing hard-to-abate sectors such as long-haul transport and aviation.
• Our proximity to Asian and Indo-Pacific markets is an advantage for new hydrogen-based export industries.
• Our trading partners value our proven track record of stability and reliability.
• Widespread development and investment in hydrogen-based export industries will offer new job and business prospects across many regional areas of Australia. Australia’s renewable hydrogen exports could create tens of thousands of direct and indirect jobs by 2040. These exports could also provide opportunities for existing workers in declining fossil fuel industries to transition to new resource and manufacturing businesses that use hydrogen. Australia’s hydrogen industry will also deliver benefits to regional communities in the form of new infrastructure to support the industry to grow.
• The emergence of large-scale off-grid renewables presents a new opportunity for renewable energy generation project developers. This type of project will have the benefits of scale and lower transmission and network connection costs.

The updated Strategy reflects Australia’s commitment to developing a strong hydrogen industry for a greener environmental future. The Strategy will also work towards building a stronger and more diverse economic future for Australia.

“The hydrogen market is forecast to reach $1.4 trillion globally by 2050, and Australia’s abundant renewable energy resources give it a competitive edge in this emerging market.” – Fleet EV News

The Future of Australia-Germany Hydrogen Cooperation

At the Asia-Pacific Hydrogen Summit in Brisbane on Thursday 12 Sep 2024, Anja Hajduk, German State Secretary for Economic Affairs and Climate Action, announced the plan to hold a special auction for the import of Australian green hydrogen to Germany. The Joint Declaration of Intent to negotiate the equally funded deal was signed by Chris Bowen (Australian Minister for Climate and Energy) and Hajduk. The auction will facilitate secure, long-term hydrogen offtake agreements with the mutual aim to strengthen collaboration in the renewable energy sector.

The auction is a continuation of the Australia-Germany Hydrogen Accord, established in June 2021, and is part of a broader funding scheme involving a total investment of €400 million (approximately AU$660 million). Germany and Australia will each contribute €200 million. The two countries have previously collaborated on hydrogen research projects through HyGATE (German-Australian Hydrogen Innovation and Technology Incubator).

As Australia aims to position itself as a leading supplier of green hydrogen, the auction is a firm step towards capitalising on established economic feasibility and interest in green fuels export to Europe.

“A joint H2Global window will give Australian producers the opportunity to export to some of the world’s largest renewable hydrogen markets, including Germany, establishing new green supply chains with Europe and supporting a Future Made in Australia.” – DCCEEW

The Net Zero Economy Authority Bill 2024

The Australian Federal Parliament passed the Net Zero Economy Authority Bill 2024 on September 13, 2024.

This significant piece of legislation aims to facilitate Australia’s transition to a net zero emissions economy by 2050. To achieve this, a Net Zero Economy Authority will be established. The Authority will serve as an independent statutory body and play a crucial role in coordinating efforts across various sectors to promote economic transformation and sustainability during the decarbonisation transition.

The Authority will help to support workers, communities, and industries affected by the transition by implementing an Energy Industry Jobs Plan. The Plan will prepare the workforce for the economic shifts associated with the net zero transition.

The Australian Government has allocated approximately $189.3 million over four years to support the establishment and operations of the Authority.