Australia strikes hydrogen energy deal with Germany in bid to grow industry to $11b by 2050
Tasmania’s bid to build a lucrative hydrogen industry will get a boost with Australia starting talks to become a major supplier for Germany.
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AUSTRALIA’S bid to become a clean hydrogen powerhouse is a step closer, with the federal government kickstarting talks to supply Germany.
The two countries have inked a deal to investigate the potential to develop a hydrogen supply chain between them, paving the way for Australia to become a major hydrogen exporter to the world’s fourth largest economy.
The agreement is tipped to drive investment that would build Australia’s clean hydrogen sector, anticipated to be worth between $11 billion and $26 billion a year by 2050.
It could also ultimately open a new market for Tasmania, which aims to build a lucrative hydrogen industry over the next decade.
Trade Minister Simon Birmingham said: “This study gets the ball rolling on the development of future hydrogen supply chain with Germany which could lead to billions of dollars in export earnings for Australia and help them meet their future clean energy ambitions.”
“With Australia well positioned to be a major supplier of low emissions hydrogen, and global demand for hydrogen continuing to grow, we need to continue to develop links with future importers around the world,” he said.
Germany, which plans to be greenhouse gas neutral by 2050, is tipped to be one of the world’s biggest users of hydrogen in the future.
An agreement with the European powerhouse, which is a world-leader in hydrogen technology development, is expected to drive collaboration on research to help develop the sector locally.
Premier Peter Gutwein unveiled Tasmania’s renewable hydrogen action plan in March which outlined plans for the state to become a major low cost producer of the sustainable fuel source, which can replace diesel and natural gas to powertrains, trucks, buses and households.
It notes Tasmania is a “perfect location” for to develop the industry with its deepwater ports, significant water availability, and transport and industrial infrastructure.
The state is injecting $50 million over ten years to help build the sector.
Australia has signed a previous agreement with Japan on hydrogen and a letter of intent with South Korea.
Originally published as Australia strikes hydrogen energy deal with Germany in bid to grow industry to $11b by 2050