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Australia-Germany Hydrogen Accord accelerates hydrogen industry

Australia-Germany Hydrogen Accord accelerates hydrogen industry

Australia and Germany will invest in a series of new initiatives to accelerate the development of a hydrogen industry, through a Declaration of Intent on the Australia-Germany Hydrogen Accord. 

This initiative will create new economic opportunities and jobs, while reducing emissions. 

The Australia-Germany Hydrogen Accord builds on each government’s respective strengths, with Australia looking to be a major hydrogen exporter. Germany holds expertise in hydrogen technology and plans to import significant quantities of hydrogen in the future. 

International collaboration focused on technological innovation is key to getting new energy technologies like hydrogen to commercial parity, according to Australian prime minister Scott Morrison. 

“Our partnership with Germany will accelerate the development of an Australian hydrogen industry and create new jobs,” Morrison said. 

“Our ambition is to produce the cheapest clean hydrogen in the world, which will transform transport, mining, resources and manufacturing at home and overseas. 

“Developing new low emissions industries means more jobs for Australian workers, and cheaper energy means lower costs for businesses so they can reinvest in hiring more people.” 

Getting new energy technologies to parity with existing technologies was identified as the only way to reduce emissions without imposing taxes or new costs on households, businesses and industry, according to minister for Energy and Emissions Reduction Angus Taylor. 

“Australia is playing its role in the global effort to reduce emissions by driving down the cost of low emissions technologies,” Taylor said. 

“Clean hydrogen is a priority under the Technology Investment Roadmap and we’re excited to be working with Germany to bring this new industry to life. 

“We have a mix of all the key ingredients needed to be a major global player in a thriving global clean hydrogen industry – abundant land and energy resources coupled with an excellent track record and reputation as reliable energy partner,” he said. 

“We have set the goal of producing hydrogen at less than $2 a kilogram – ‘H2 under 2’, the price at which hydrogen becomes competitive with higher emitting alternatives. 

“Getting new technologies like hydrogen to cost parity will enable substantial reductions in global emissions, while strengthening existing industries and creating new ones,” Taylor said. 

The Australia-Germany Hydrogen Accord includes three major initiatives: 

  • Establishing the German-Australian Hydrogen Innovation and Technology Incubator (HyGATE) to support real-world pilot, trial, demonstration and research projects along the hydrogen supply chain. Australia and Germany have respectively committed up to $50 million and €50 million to establish HyGATE. 
  • Facilitating industry-to-industry cooperation on demonstration projects in Australian hydrogen hubs. 
  • Exploring options to facilitate the trade of hydrogen and its derivatives produced from renewables (such as ammonia) from Australia to Germany, including through Germany’s H2Global Initiative, which supports long-term supply agreements with German industry. 

The Australia-Germany Hydrogen Accord builds on Australia’s existing collaboration with Germany on low emissions technologies including hydrogen, with a two-year supply chain study between the two countries already underway. 

Together with partnerships with Singapore and Japan, these new initiatives are part of the Australian government’s $565.8M commitment to build new international technology partnerships that will drive investment in Australian-based projects and create up to 2,500 jobs. 

Building demand for future low emissions energy exports will help Australia’s emerging hydrogen industry scale up and attract investment. An Australian hydrogen industry could generate more than 8,000 jobs and deliver over $11B a year in GDP by 2050. 

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