The Australian Government has unveiled its updated National Hydrogen Strategy in an attempt to position the country as a large-scale exporter.
Revealed today (September 13), the 2024 strategy sets the goal of producing 15 million tonnes of green hydrogen per year by 2050, with a “stretch potential” of 30 million tonnes.
“Setting five-yearly production milestones out to 2050 will provide the trajectory we will need to realise our goal to be a global hydrogen leader,” the strategy reads.
With the ambitions supported by the AUD $2/kg ($1.34/kg) Hydrogen Production Tax Incentive (HPTI), Hydrogen Headstart programme and other mechanisms, the government intends to bridge the commercial price gap with fossil fuels.
Planning to use the energy carrier in green metals, ammonia, long haul transport, power generation and grid support, the strategy further aligns with the Future Made in Australia (FMIA) agenda announced in May.
Read more: Future Made in Australia (FMIA) ignites the nation’s hydrogen ambitions
“These sectors align with Australia’s comparative advantages, and with the right support can be internationally competitive,” the strategy said.
Significantly, the strategy sets a base export target of 0.2 million tonnes of hydrogen per year, with a “stretch” potential of 1.2 million tonnes – reflecting the nation’s hopes of establishing hydrogen trade relationships with Germany, Japan and South Korea.
The strategy comes the same day as the Australian and German governments agreed to hold a €400m ($443.6m) H2Global auction to guarantee European buyers for Australian hydrogen.
With plans to use international investment to develop export projects, building “secure” supply chains and the expansion of its guarantee of origin scheme, the government intends to verify hydrogen-based products such as green metals and e-fuels.
Energy Minister, Chris Bowen, said with a “substantial” policy and budgetary measure from the government, the new strategy tells the world, “Australia is ready to be a global hydrogen leader.”
“New policies including the HPTI and an expanded Hydrogen Headstart program unequivocally position Australia as one of the best places in the world to make green hydrogen.
“The challenge is now over to our emerging hydrogen industry to seize the moment,” Bowen said.
Dr. Fiona Simon, CEO of the Australian Hydrogen Council (AHC), praised the efforts, describing the new strategy as a “new chapter” in Australia’s hydrogen journey.
“Over the past two days, we have heard from hydrogen developers about the barriers to progressing hydrogen projects in Australia, and one challenge is demand.
“Participation in the H2Global scheme formally secures a place for Australian producers to be part of the EU’s targets for import of clean molecules,” she added.
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