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Growing Australia's hydrogen industry

To support our future energy needs the world needs clean, flexible, storable and safe fuels. Hydrogen has all of these characteristics. As a fuel it produces no carbon emissions, only water.

We can use it to:

  • power vehicles
  • generate electricity and produce heat
  • make products like fertilisers, plastics and explosives

Australia has an abundance of natural resources to make clean hydrogen for our own use and to supply the world.

Our vision is to build a clean, innovative, safe and competitive hydrogen industry that benefits all Australians. We aim to grow our hydrogen industry and position Australia as a major player by 2030 through Australia's National Hydrogen Strategy.

Prioritising hydrogen to reduce emissions

Hydrogen is a priority low emissions technology for Australia. Producing clean hydrogen under $2 per kilogram (H2 under 2) is a priority stretch goal under the government’s first Low Emissions Technology Statement.

Partnering internationally to supply hydrogen

We are setting the foundations for Australia to be a major hydrogen exporter.

This includes:

Certifying hydrogen production

Australia is seeking to play a lead role in designing and developing an international Guarantee of Origin Certification scheme.

Through the International Partnership on Hydrogen and Fuel Cells in the Economy (IPHE) we are working with other countries to agree on methods for determining carbon emissions associated with hydrogen production.

We ran a survey on certification on our Consultation hub in 2020.

We will hold a trial of a Guarantee of Origin hydrogen certification scheme for Australia in 2021.

Funding for the trial is part of a $275.5 million investment in building the hydrogen industry.

Creating regional hydrogen export hubs

The National Hydrogen Strategy supports the creation of ‘hydrogen hubs’ – regions where hydrogen users are co-located. The hub model:

  • is an efficient and effective way to grow Australia’s hydrogen industry
  • allows for fewer, bigger supply chains, with associated cost savings

The Australian Government committed to funding Australia’s first hydrogen hub in 2020.

Funding to develop 4 additional hubs is part of a $275.5 million investment in building the hydrogen industry announced in 2021.

This investment also provides for up to 10 hydrogen hub feasibility studies and legal reforms to facilitate trade.

Developing hydrogen hubs is an important step towards creating domestic demand and scaling up an Australian hydrogen industry.

Progressing the hydrogen industry

We are also:

  • completing a National Hydrogen Infrastructure Assessment
  • reviewing Australia’s legal frameworks to better support hydrogen industry development and safety
  • completing activities to support the addition of hydrogen in our gas networks, from reviewing national gas laws to considering the economics of blending and use of up to 100% hydrogen in gas networks
  • providing support for hydrogen pilots, trials and demonstrations
  • creating an Australian hydrogen researcher network
  • doing research to inform community engagement
  • mapping future hydrogen workforce needs  
  • developing an annual State of Hydrogen report

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Last updated: 4 May 2021

Content ID: 66099