- Australia aims to produce 15 million tonnes of renewable hydrogen annually by 2050, backed by A$8 billion in government funding and international partnerships like Germany’s A$660 million H2Global program.
- By 2030, Australia plans to achieve 5 GW of electrolysis capacity and produce over 1 million tonnes of hydrogen, with critical projects like the Central Queensland Hydrogen Hub driving A$17.2 billion in export revenue.
- Hydrogen production costs are expected to drop below $2 per kilogram by 2050, positioning Australia as a competitive global leader in renewable hydrogen supply.
Australia aims to lead the global renewable hydrogen market, targeting 15 million tonnes of annual production by 2050. International partnerships and significant investments promise to transform the country’s energy sector.
Climate Change and Energy Minister Chris Bowen announced the plan, focusing on meeting domestic demand while unlocking export opportunities. The strategy leverages advancing technologies and growing markets, positioning Australia as a critical player in the global energy transition.
Germany committed A$660 million through its H2Global program to support renewable hydrogen supply chains with Australia. This builds on existing agreements, including the Hydrogen Agreement and the HySupply and HyGate projects, to strengthen commercial and technological ties between the two nations.
The Australian government allocated A$8 billion under its “Future Made in Australia” plan to accelerate hydrogen development. This funding supports 10 to 20 major hydrogen projects for domestic use and export. By 2030, Australia plans to reach at least 5 GW of electrolysis capacity, generating over a million tonnes of hydrogen annually.
Australia set a goal of producing 200,000 tonnes of renewable hydrogen by 2030, potentially increasing to 1.2 million tonnes yearly. The Central Queensland Hydrogen Hub, a critical project, expects to generate A$17.2 billion in export revenue, reinforcing Australia’s role in the global hydrogen market.
Renewable hydrogen production costs in Australia range between A$5 and A$10 per kilogram. Projections show costs will significantly drop by 2050. Declining renewable energy and electrolyser costs will likely push production prices below $2 per kilogram, enhancing Australia’s global competitiveness.
The government introduced financial incentives to attract investment, including the A$4 billion Hydrogen Headstart program and a new $2 per kilogram tax incentive for hydrogen production. These initiatives aim to create a favourable business environment for hydrogen industry growth.
Australia already hosts over 20% of the world’s hydrogen projects, valued at over A$200 billion. Strong demand from Europe and Asia drives Australia’s push to become a major hydrogen supplier as countries diversify energy sources and cut emissions.
Minister Bowen emphasised the importance of Australia’s hydrogen strategy for the global energy transition. With international collaborations, financial backing, and competitive production costs, Australia is set to shape the future of renewable energy.
As Australia advances its renewable hydrogen strategy, its growing leadership in the global hydrogen market offers significant economic and environmental benefits for both the country and the world.