hydrogen molecule

Australia’s first State of Hydrogen report has been released, providing a picture of the hydrogen industry’s progress and how it measures up to international growth.

The report follows up on progress made since the release of the National Hydrogen Strategy in 2019, which outlines the future of clean hydrogen.

Clean hydrogen refers to hydrogen produced using either renewable energy or using fossil fuels with substantial carbon capture and storage (CCS).

Minister for Industry, Energy and Emissions Reduction, Angus Taylor, said Australia is well-positioned to become a major hydrogen player by 2030.

“These projects are helping us to grow our capability and overcome expected challenges as we set out to reach our hydrogen production goal of $2 per kilogram,” Mr Taylor said.

The report notes that progress has been slower on demand-side indicators. The expected barriers facing the industry include reducing hydrogen delivery costs, building demand and achieving low-cost hydrogen production at scale.  

This is expected given the early state of the industry and the higher cost of clean hydrogen compared to traditional alternatives currently being used. 

Many of hydrogen’s expected future uses (such as hydrogen blending in gas networks and fuels for vehicles) have only recently begun trials. 

The Federal Government has committed funding of $565.8 million from the 2021-2022 Budget to establish low emissions technology partnerships. 

New low emissions technology partnerships have already been secured with Singapore, Germany, Japan, the United Kingdom and the Republic of Korea to help accelerate the deployment of hydrogen and build supply chains with these countries.

The first State of Hydrogen report is available online at http://industry.gov.au/StateOfHydrogen2021.

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