A global producer of hydrogen

Australia is set to become a major global producer of hydrogen.

Our world-class renewable energy resources make us well placed to produce hydrogen at internationally competitive prices. 

Hydrogen has the potential to be an important contributor to our net zero transformation. This is through use in areas such as industry, transport, grid firming, chemicals and metals production.

Australia is also close to key export markets. Our major trading partners have expressed a significant appetite for importing renewable hydrogen and its derivatives.

The National Hydrogen Strategy showcases the strong support of Australia’s governments for hydrogen industry growth.

Australia’s pipeline of hydrogen projects is the largest in the world. Our pipeline of projects under consideration is valued at up to A$300 billion (Source: Department of Climate Change, Energy, the Environment and Water, Australia’s National Hydrogen Strategy, 2023). This includes projects for domestic use and large-scale exports.

For investors, our global competitive advantage rests on 4 factors:

  • The combination of vast solar and wind resources. Australia’s generating capacity from renewables is set to rise rapidly over the coming decade.
  • World-leading hydrogen and energy regulation. This includes industry-leading certification and interoperability.
  • Our reputation as a safe destination for investors. Australia’s resources sector is already our largest export sector — thanks mostly to international investors.
  • Ready export markets. Australia is an established energy supplier to fast-growing economies in Asia. We are developing supply chains through multiple international partnerships.

Australia is a natural supplier of hydrogen to industrial economies. We have established the necessary agreements to become a global exporter. Our international agreements cover:

  • Germany
  • Japan
  • Korea
  • The Netherlands
  • India
  • Singapore
  • United Kingdom
  • United States.

These strategic markets align with forecast demand. The IEA predicts that by 2050, Korea and Japan will account for 40% of the world’s global hydrogen imports. (Source IEA, World Energy Outlook 2023, page 249).

How we can help

Hydrogen Equipment, Technology and Services (HETS) report

Incentives, grants and support

The Australian Government’s Future Made in Australia plan identifies renewable hydrogen as a priority industry. This can make a significant contribution to achieving net zero, where Australia has a comparative advantage.

The Australian Government is funding the development of a large, domestic green hydrogen industry.  

  • The Australian Government will introduce a new Hydrogen Production Tax Incentive (worth an estimated A$6.7 billion over 13 years from 2027–28). The incentive will provide a A$2 incentive per kilogram of renewable hydrogen produced between 2027–28 and 2039–40, for up to 10 years per project.
  • The Australian Government is investing A$4 billion in the Hydrogen Headstart program. The program will provide revenue support for large-scale renewable hydrogen projects through competitive hydrogen production contracts.
  • The Clean Energy Finance Corporation operates a $300 million Advancing Hydrogen Fund.
  • The Australian Regional Hydrogen Hubs Program is investing more than A$500 million to support the development of hydrogen hubs in regional Australia. The program includes design and development studies.
  • Up to A$3 billion of the A$15 billion National Reconstruction Fund (NRF) will be set aside to finance renewables and low emissions technologies. This includes funding for hydrogen electrolysers and fuel switching.

Guarantee of Origin scheme

The Australian Government is making it easier for businesses and trading partners to source low-emissions products by building better markets and product standards for green products. 

The Guarantee of Origin scheme will measure and certify the emissions intensity across the supply chain of key products. The Australian Government is fast-tracking the initial phase of this scheme, focused on renewable hydrogen. The program will also be expanded to green meals and low carbon liquid fuels.

Snapshot


Australia's hydrogen industry


Exporter

In 2022, Australia became the first country in the world to export liquified hydrogen.


Pipeline

Australia’s pipeline of announced hydrogen projects topped 100 in 2022. This represents A$230 – $300 billion of potential investment.


Green hydrogen production

Around 3 per cent of Australia’s land is suitable for green hydrogen production, based on access to renewable electricity and water supplies.

Sources:

  1. Reuters, World’s first hydrogen tanker to ship test cargo to Japan from Australia, January 2022
  2. Department of Climate Change, Energy, the Environment and Water, State of Hydrogen 2022
  3. Australia’s National Hydrogen Strategy 2019

Australia's National Hydrogen Strategy

Australia has a strong foundation of hydrogen R&D skills and infrastructure. Australia:

  • ranks third in the world for publishing hydrogen research, according to the Category Normalised Citation Impact (CNCI)
  • has the largest pipeline of hydrogen projects of any country in the world (Source: Growing Australia's Hydrogen Industry).

In addition:

  • Geoscience Australia operates the Australia Hydrogen Opportunities Tool (AusH2)
  • there is a network of hydrogen technology clusters across Australia known as regional hydrogen technology clusters – H2TCA
  • the Australian Hydrogen Capability Finder, HyCapability, maps regional hydrogen ecosystems and supply chain capacity.

The Commonwealth Scientific and Industrial Research Organisation has also created HyResource. This maps more than 100 hydrogen-related industry projects in development in Australia. It also hosts a dataset of hydrogen support programs and initiatives.

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