SA welcomes Australia-Germany hydrogen deal

Australia has inked a new hydrogen agreement with Germany - and South Australia is ready to seize on the opportunity.

South Australia is in the box seat to capitalise on a new hydrogen agreement between Australia and Germany.

Scott Morrison and German Chancellor Angela Merkel signed the accord to jointly invest in hydrogen research and trade during a meeting on the sidelines of the G7 summit in Britain on Sunday.

State Energy Minister Dan van Holst Pellekaan welcomed the deal, saying SA was well placed to play a leading role in supplying Germany’s future hydrogen needs.

Australian Prime Minister Scott Morrison attends a bilateral meeting with Germany’s Chancellor Angela Merkel on the sidelines of the G7 in Cornwall, United Kingdom on Sunday, June 13, 2021. Picture: Adam Taylor/PMO

“With Hydrogen Park South Australia (at Tonsley) already operating Australia’s largest hydrogen electrolyser, SA leads the nation developing the green hydrogen industry,” Mr van Holst Pellekaan said.

“Our recently finalised memorandum of understanding with the Port of Rotterdam, Europe’s largest seaport, positions us well to deliver on opportunities with Germany.”

SA is seeking to launch a hydrogen export hub as part of a wider plan to develop a lucrative hydrogen industry.

The state government opened expressions of interest in May to develop land at Port Bonython in the Upper Spencer Gulf, which is one of three prospective sites.

The federal government is also looking to establish five hydrogen hubs around Australia.

Under the new accord between Australia and Germany, both countries will commit up to $50m each to establish the German-Australian Hydrogen Innovation and Technology Incubator, or “HyGATE”, to support research projects.

The two countries will also explore options to export hydrogen and its products produced from renewables from Australia to Germany, through Germany’s $2.4bn H2Global Initiative.

Germany intends to be a major importer of green hydrogen in order to meet its climate change targets, and has already signed hydrogen partnership agreements with Canada and Saudi Arabia.

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

It is estimated an Australian hydrogen industry could generate more than 8000 jobs and $11bn a year for the economy by 2050.

Originally published as SA welcomes Australia-Germany hydrogen deal