hydrogen truck

A new report funded by the Federal Government reveals the potential for Australia to help meet Germany’s growing demand for hydrogen.

The Case for an Australian Hydrogen Export Market to Germany: State of Play report was released 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 Federal 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 the 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.

Federal Minister for Industry, Energy and Emissions Reduction, Angus Taylor, said the report addresses key questions around exporting hydrogen.

“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,” Mr Taylor said.

“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.”

The new Australia-Germany Hydrogen Accord, signed by both countries in June 2021, will leverage this preparatory work by HySupply. 

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

The Federal Government has also committed over $500 million to build new international technology partnerships, in line with the recently released National Hydrogen Strategy for Australia to be a major global player in hydrogen by 2030. 

The report is available here.

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