Australia dreams of global leadership in green hydrogen adds $50M for low-emissions steel

The Australian government has released its annual State of Hydrogen report, indicating that Australia has the potential to become a world leader in green hydrogen production.

The report highlights the country’s existing infrastructure and expertise in advancing hydrogen as a chemical feedstock and for export to generate electricity. However, it also points out the need for accelerating priority pilot projects and hydrogen hubs to compete internationally.

According to the report, more than 100 green hydrogen projects, including green ammonia and green methanol manufacturing, were announced in Australia in 2022, double the number announced in 2021. The country also accounts for around 40% of all announced global hydrogen projects, with a pipeline valued between A$230 billion to A$300 billion.

The Minister for Climate Change and Energy, Chris Bowen, stated that the hydrogen industry could generate $50 billion in additional GDP and create more than 16,000 jobs in regional Australia by 2050. The Albanese Government is fast-tracking hydrogen investment by investing over half a billion dollars to develop regional hydrogen hubs, supporting cutting-edge technology in the industry, and advancing cooperation with the Netherlands on a green hydrogen supply chain.

Moreover, the Albanese Government is investing in green hydrogen and low-emissions steel with $50 million in research and development funding through two A$25 million rounds to be launched by the Australian Renewable Energy Agency (ARENA). A further $25 million will go towards research to significantly reduce emissions across the steel value chain.

The gas sector will play a critical role in kick-starting low-emissions hydrogen, according to the Australian Petroleum Production & Exploration Association (APPEA) Chief Executive Samantha McCulloch. She added that natural gas combined with carbon capture, utilisation, and storage (CCUS) is currently the most affordable pathway for low-carbon hydrogen production, paving the way for all low-carbon hydrogen pathways.

In April 2022, a world-first pilot project successfully exported liquid hydrogen from Victoria to Japan. The pilot established a new hydrogen supply chain produced from brown coal and a mixture of biomass, which was then transported to the Port of Hastings for liquefaction before being loaded onto the Suiso Frontier, purpose-built by Kawasaki Heavy Industries, and shipped to the Port of Kobe in Japan. This marked the first time that liquefied hydrogen has been exported from one continent to another.

The Australia-Singapore Low Emissions Technologies for Maritime and Port Operations initiative aims to accelerate the deployment of low emissions fuels and technologies, including hydrogen, to reduce emissions in maritime and port operations.

Overall, the State of Hydrogen report shows that Australia is well-placed to capitalize on the growing demand for green hydrogen, with the Albanese Government’s initiatives paving the way for a sustainable hydrogen industry, increased GDP, and new job opportunities.