Germany plans to hold an exclusive AUD $660m ($444m) auction for green hydrogen imports into Australia through H2Global funding.
The agreement was signed by the Australian Minister for Climate and Energy, Chris Bowen, and the German State Secretary for Economic Affairs and Climate Action, Anja Hajduk, at the APAC Hydrogen Summit in Brisbane, Australia.
The joint funding is expected to be available over the next 10 years to support new commercial supply and access to the European market through guaranteed offtake agreements.
Industry stakeholders will be invited to provide input, feedback, and recommendations on how the trade window will be structured and operated.
Commenting on the agreement, Bowen said, “Renewable hydrogen is key to Australia’s 21st century export prosperity. The world needs it. We can make it. And we can ship it to our partners, or use it to make green products, chemicals and fuels in Australia to export to the world.
“This negotiation under the H2Global mechanism and the expanded partnership with Germany will allow us to work together to seize the opportunity in hydrogen and help realise Australia’s renewable energy superpower potential.”
German Vice Chancellor and Minister for Economic Affairs and Climate Action, Robert Habeck, added, “This partnership is not just a declaration; it’s a pathway to tangible action that strengthens our economies and supports the global transition to Net Zero.
“We are convinced that the Energy and Climate Partnership will provide numerous opportunities for fruitful private collaborations. And we are confident that joint hydrogen auctions under H2Global will kick-start the market and provide urgently needed price signals.”
Today (September 13), the Australian Government unveiled its updated National Hydrogen Strategy in an attempt to position the country as a large-scale exporter.
Read more:Australia unveils updated hydrogen strategy aiming for export leadership
The 2024 strategy has the goal of producing 15 million tonnes of green hydrogen per year by 2050, with a “stretch potential” of 30 million tonnes. This will be supported by its AUD $2/kg Hydrogen Production Tax Incentive (HPTI).
Dr. Fiona Simon, CEO of the Australian Hydrogen Council, claimed the strategy and H2Global auction “marks a new chapter in our 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 the import of clean molecules.”
Policy Pillar: Future Made in Australia ignites the nation’s hydrogen ambitions
It felt like a long-awaited moment when Australian Treasurer, Jim Chalmers, stood up in the country’s Parliament in Canberra, to announce the government’s AUD $22.7bn ($15.2bn) Future Made in Australia (FMIA) Act framework, as part of his 2024-25 budget.
Offering investments into renewable energy, clean energy manufacturing, economic and workforce development, innovation and technology, and more, over the next 10 years, the package is hoped to spur domestic manufacturing while accelerating the nation on its path to Net Zero.
It came after the government announced it would respond to mammoth policies such as the US’ Inflation Reduction Act (IRA) and the European Net Zero Industry Act (NZIA), with the Chancellor claiming the package will help make Australia an “indispensable part” of the global economy.
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