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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 blend with (or replace) natural gas for homes, industry and cooking
  • for fuel cells to generate electricity to power cars, trucks, buses and trains
  • to store energy and generate electricity for mining sites and remote communities
  • as an industrial chemical feedstock for products such as ammonia, fertiliser and steel
  • to trade clean energy with other countries.

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.

The Australian Government is investing $1.2 billion in building a hydrogen industry. Australia's National Hydrogen Strategy is a plan to grow this industry and position Australia as a major player by 2030.

The State of Hydrogen 2021 report provides an update of our progress so far. It shows that Australia is making significant progress on the priority actions in the National Hydrogen Strategy.

Prioritising hydrogen to reduce emissions

Clean hydrogen is part of Australia’s Long-Term Emissions Reduction Plan. Producing clean hydrogen under $2 per kilogram (H₂ under 2) is a priority stretch goal under the government’s Technology Investment Roadmap.

Partnering internationally to supply hydrogen

We are setting the foundations for Australia to be a major hydrogen exporter. We are doing this by partnering with other countries to attract investment, build supply chains and advance research and development.

This includes:

Guarantee of Origin scheme

We are working with industry to design and develop an internationally consistent Guarantee of Origin scheme for Australia.

The scheme will support a future trade in clean hydrogen by informing customers about the:

  • emissions associated with the hydrogen they buy
  • source and type of technology used in its manufacture.

We are holding industry trials to shape the scheme. These trials build on the results of a discussion paper released in 2021.

The trials also draw on our work with the International Partnership on Hydrogen and Fuel Cells in the Economy (IPHE). Through the IPHE, we are working with other countries on methods to determine the carbon emissions from hydrogen production.

Creating clean hydrogen industrial hubs in regional Australia

The National Hydrogen Strategy supports the creation of hydrogen hubs. Hubs are regions where hydrogen users, producers and potential exporters are co-located. This lowers infrastructure needs and reduces costs, making the hub model an efficient approach to producing hydrogen at scale and increasing demand.

The Clean Hydrogen Industrial Hubs program supports industry to develop 7 hubs in regional Australia.

Improving hydrogen regulation

We are reviewing Australia’s regulatory frameworks to better support hydrogen industry development and safety.

This includes working with state and territory governments to:

  • review federal, state and territory laws that affect the hydrogen industry
  • identify regulatory barriers to hydrogen projects in Australia
  • recommend ways to address these barriers, including regulatory reform.

We will consult industry as part of this review. You can also provide feedback on hydrogen regulation by emailing HydrogenRegulatoryReview@industry.gov.au.

Helping Australians understand hydrogen

We are looking at ways to improve community awareness of hydrogen.

This will help Australians understand:

  • the benefits and risks of hydrogen
  • how to use hydrogen safely
  • the benefits of a strong Australian hydrogen industry, including economic opportunities and lower carbon emissions.

Progressing the hydrogen industry

We are also:

  • completing a National Hydrogen Infrastructure Assessment
  • reviewing national gas laws and considering the economics of using hydrogen in gas networks
  • providing support for hydrogen pilots, trials and demonstrations
  • working with CSIRO to support the Australian Hydrogen Researcher Network (AHRN) and collaboration on hydrogen R&D, including the HyResearch website
  • mapping future hydrogen workforce needs.

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Contact us

Email hydrogen@industry.gov.au

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Last updated: 21 January 2022

Content ID: 66099