The European Union has introduced a new Renewable Energy Directive that includes a mandate for industry to procure 42% of its hydrogen from renewable fuels by 2030, rising to 60% by 2035. This is a significant opportunity for Australian exporters of green hydrogen, which is produced using renewable energy sources such as solar and wind power.
The EU is already the world’s largest consumer of hydrogen, and its demand for renewable hydrogen is expected to grow rapidly in the coming years. This is due to a number of factors, including the EU’s commitment to net zero emissions by 2050, its growing renewable energy capacity, and its declining domestic production of fossil fuels.
Australia has significant potential to become a major exporter of green hydrogen. The country has abundant renewable energy resources, and it is already home to a number of hydrogen projects under development. The Australian government is also supportive of the hydrogen industry, and it has a number of policies in place to support its growth.
However, there are also some challenges that Australia will need to address in order to capitalize on the EU’s renewable hydrogen mandate. One challenge is the need to scale up production capacity. Another challenge is the need to develop a competitive export supply chain.
The Australian government and industry are working to address these challenges. The government has committed to investing $1.5 billion in hydrogen projects over the next five years. Industry is also investing heavily in hydrogen, with a number of projects currently under development.
If Australia can successfully address these challenges, it is well-positioned to become a major exporter of green hydrogen to the EU and other markets around the world.
The EU’s renewable hydrogen mandate has the potential to have a significant impact on the Australian hydrogen industry. The mandate will create a large and growing market for Australian green hydrogen exports. This could lead to billions of dollars in investment and the creation of thousands of jobs in the Australian hydrogen industry.
The EU’s renewable hydrogen mandate could also have a positive impact on the Australian economy as a whole. By boosting exports and creating jobs, the mandate could help to grow the Australian economy and create more opportunities for Australians.