CSIRO has unveiled a new report that estimates Australia’s hydrogen electrolyser manufacturing (HEM) sector could generate $1.7 billion in revenue and create nearly 4000 jobs by 2050.
The Hydrogen Electrolyser Manufacturing report underscored Australia’s strong starting position, with an emerging cohort of Australian electrolyser manufacturers translating innovations from the country’s research sector, and a significant domestic pipeline of projects seeking to produce renewable hydrogen.
CSIRO Futures Energy Lead, Vivek Srinivasan, emphasised the importance of timely action to capitalise on the opportunity.
“Building an electrolyser manufacturing sector isn’t just about meeting immediate demand; it’s an opportunity to develop an industry that adds long-term value to our economy and strengthens our energy security through building sovereign manufacturing capability.
“By leveraging Australia’s renewable energy advantages and innovative R&D capabilities, Australia can become a player in this rapidly emerging sector – but we must act quickly while the opportunity is available to us.”
CSIRO’s report recommended a coordinated approach across research, industry and government to realise the full potential of Australia’s HEM sector.
Key strategies include:
- Aggregated demand: Aligning with adjacent clean energy manufacturing opportunities to facilitate strategic investments and decisions.
- Sovereign capabilities and international partnerships: Exploring international partnerships to preserve domestic value creation.
- Strategic manufacturing hubs: Identifying and promoting manufacturing hubs that leverage Australia’s renewable electricity advantages, while managing inflexible costs such as labour and logistics.
In addition to electrolyser manufacturing, the report also identified significant potential for growth in electrolyser installation services, with projections of an additional $1.2 billion in revenue and 1000 jobs by 2050.
CSIRO Leader of Hydrogen Industry Mission, Patrick Hartley, said there is a window of opportunity for Australia to seize a piece of the global electrolyser market.
“Australia has a significant pipeline of renewable hydrogen projects, with specific electrolyser procurement and maintenance needs,” Dr Hartley said.
“If we can use our natural and technical advantages to develop a geographically aligned supply chain, Australia could reap the economic and environmental benefits of owning a significant portion of the electrolyser market.”
