Australia has signed a deal with the German government for $660 million of shared investment in Australian hydrogen projects as part of a joint initiative to support supply of the low-emissions fuel to the European market and help replace Russian gas.

The deal –  foreshadowed by The Australian Financial Review in January –  gives much-needed impetus to Australia’s nascent hydrogen industry, which was dealt a blow when its most high-profile player, Fortescue Metals Group, sharply scaled back its 2030 production goals in July.