Strong potential for future Australia-Germany hydrogen exports

The Morrison Government is continuing to work with international partners to establish Australia as a hydrogen export powerhouse.

A new report from a landmark Australian-German study has found great potential for Australian hydrogen to supply growing demand in Germany.

The Case for an Australian Hydrogen Export Market to Germany: State of Play report was released today by Australian consortia led by the University of New South Wales (UNSW), Deloitte Financial Advisory and Baringa Partners. The report is supported by $597,300 funding from the Morrison Government.

The report is the first from the HySupply project, a collaboration between Germany and Australia investigating the feasibility of a supply chain spanning the production, storage, transport and use of hydrogen produced from renewable energy.

It is being delivered under a bilateral hydrogen cooperation deal signed by Australian and German Governments in September 2020.

The report analyses the costs of producing hydrogen and hydrogen-based energy carriers (such as ammonia) using renewable energy, and shipping options for export to Germany.

The report shows that Australia will be competitive as a hydrogen exporter, even when compared to countries located closer to Germany, as the shipping distance between ports is a relatively minor component of overall supply chain costs.

It suggests shipping hydrogen in the form of ammonia and other energy-based carriers may be early options for viable export and  highlights the value of hydrogen export hubs  for Australian regional development.

Minister for Industry, Energy and Emissions Reduction Angus Taylor said the report shows Australia has great potential to supply hydrogen to support Germany's hydrogen ambitions, and addresses key questions around exporting hydrogen.

“This report demonstrates the key role of international collaboration in achieving net zero ambitions and Australia's ability to be a leader in the technological developments needed to reduce emissions across the world,” Minister Taylor said. 

“This study is the next step towards developing a future clean hydrogen supply chain with Germany, which could lead to billions of dollars in export earnings for Australia and investment in our regional communities.”

“Our $464 million Clean Hydrogen Industrial Hubs program will help to establish the scale of production needed to drive down costs that will not only benefit Australian consumers and industry, but also help Germany meet its future clean energy ambitions.”

Minister for Trade, Tourism and Investment Dan Tehan said ongoing hydrogen collaboration between Australia and Germany would provide significant trade and economic benefits which creates jobs.

“Australia is looking to be a major hydrogen exporter and Germany is already a leader in hydrogen technology,” Minister Tehan said.

“This study helps to identify the opportunities for both countries to accelerate the growth of a renewables-based hydrogen supply chain between Australia and Germany.

“In order to grow demand for Australian hydrogen and fast-track the growth of our domestic hydrogen industry, it's critical that we continue to work in partnership with future importers such as Germany.

“Partnerships such as this one allows the free flow of technologies between countries which will drive down emissions far more effectively than protectionism and taxes.”

The new Australia-Germany Hydrogen Accord, signed by both countries in June this year, will leverage this significant preparatory work by HySupply.

The Government has now invested more than $1.2 billion dollars into accelerating the development of Australia's hydrogen industry, with clean hydrogen a priority under the Technology Investment Roadmap.

The Government has also committed over $500 million to build new international technology partnerships, which are integral to realising the vision of the National Hydrogen Strategy for Australia to be a major global player in hydrogen by 2030.

Hydrogen exports could directly support 16,000 jobs by 2050 in Australia, plus an additional 13,000 jobs from the construction of related renewable energy infrastructure. Australian hydrogen production for export and domestic use could generate more than $50 billion in 2050.