India and Australia have joined forces to establish a Green Hydrogen Taskforce aimed at accelerating the development of green hydrogen technologies in both countries.
The task force, announced by Prime Ministers Narendra Modi and Anthony Albanese, will bring together experts in renewable hydrogen from Australia and India to explore opportunities for collaboration and cooperation in this crucial area. The task force will provide recommendations to the Australian-Indian Ministerial Energy Dialogue, highlighting the potential benefits of joint efforts in renewable hydrogen.
Anthony Albanese emphasized the significance of investments like the task force in driving future industrial growth and meeting energy targets while reducing global emissions. Australia, currently reviewing its green hydrogen strategy, is committed to developing hydrogen hubs, supporting pilot projects, integrating clean hydrogen into gas networks and transportation, and establishing an export industry. The recent federal budget allocated $2 billion to support large-scale green hydrogen production facilities, as well as production credit subsidies and origin verification and tracking certifications.
India, a formidable competitor in the green hydrogen market, has set ambitious targets to produce 5 million tonnes of green hydrogen annually by 2030. The collaboration between India and Australia signifies a crucial step toward establishing sustainable energy systems powered by green hydrogen. Smart Energy Council CEO John Grimes stressed the importance of ensuring that the hydrogen produced is truly green, as this will determine its potential for export.
However, the transition to a green hydrogen-powered future comes with significant costs. To realize the vision presented by organizations like the Australian Energy Market Operator (AEMO) and Bloomberg New Energy Finance, Australia would need to evaluate the economic feasibility of such a venture. AEMO’s Integrated System Plan projects energy demand to reach 1278 terawatt hours (TWh) in 2050 in a hydrogen-powered future. Bloomberg NEF estimates that this dream would necessitate 812 gigawatts (GW) of additional wind and solar power capacity, an investment of approximately $592 billion between 2022 and 2050—2.5 times more than the investment required to achieve net-zero emissions alone.