Australian Government Pledges to Unlock $50 Billion of Investment into Hydrogen

Australian Climate Change and Energy Minister Chris Bowen launches the National Electric Vehicle Strategy at a press conference outside Parliament House in Canberra, Australia, on April 19, 2023. AAP Image/Lukas Coch

The government expects its National Hydrogen Strategy to unlock $50 billion in private sector investment, and increase annual green hydrogen production to 1 million tonnes by 2030.

Chris Bowen, minister for climate change and energy, announced the numbers at the APAC Hydrogen Summit in Brisbane on Sept. 13.

“As our industry scales, it will provide greater benefits for communities, support broader economic growth, and serve as a key lever for Australia to reach net zero,” Bowen said.

His department announced annual production targets of up to 15 million tonnes by 2050, with progress measured through five-yearly milestones.

The minister also said the strategy could benefit Indigenous communities.

“We are rebuilding our energy system, and this is an opportunity to work with First Nations communities to build engagement, equity, and ownership so that we move from managing welfare to managing wealth.”

Attempts to Build Hydrogen Industry

The 2024 National Hydrogen Strategy is focused on accelerating the clean hydrogen industry and to support large-scale development.

In May the government also pledged $4 billion into the Hydrogen Headstart program. Bowen said the program included $2 million for Indigenous engagement.

“This $2 million is a fairly modest down payment, but it is designed to unlock access to much more—namely, First Nations participation in the multi-billion dollar creation of a green hydrogen industry in Australia,” Bowen said.

“Some of you might have heard me observe previously that only 1 percent of Australian renewable energy projects have an element of Indigenous ownership, compared to 20 percent in Canada. This shows we have a lot to do, but it also shows me there is a way to do it.”

Germany, Australia Pledge Hydrogen Deal

The APAC Hydrogen Summit also heard from Anja Hajduk, state secretary of Germany’s Federal Ministry for Economic Affairs and Climate Action, and Daiva Garbaliauskaitė, vice-minister of energy of Lithuania.

The minister also announced a deal between Australia and Germany on new green hydrogen supply chains through a $660 million (€400 million) H2Global funding window to guarantee European buyers for Australia’s renewable hydrogen producers.

The Joint Declaration of Intent to negotiate the $660 million deal will be equally funded by the governments of both countries. It will also form part of the German Government’s H2Global auction mechanism.

A joint H2Global window will give Australian producers the opportunity to export to some of the world’s largest renewable hydrogen markets, including Germany, establishing new green supply chains with Europe and support the Future Made in Australia, according to the government release.

Robert Habeck, German vice-chancellor and minister for Economic Affairs and Climate Action, said the deal would assist with future-proofing industry and society.

“Today’s signing of the Energy and Climate Partnership and the declaration for bilateral H2Global auctions marks a significant step forward in our shared commitment to addressing the challenges of our time.”

Opposition Energy Policy Still in the Works

Meanwhile, the federal opposition has been more careful with its support of climate change policy.

Opposition Leader Peter Dutton has managed to keep the party unified, focusing on lowering power bills, energy security, and supporting jobs in the manufacturing sector.

He has also indicated that the final Coalition policy on emissions and energy would not be rushed.

Dutton has often accused the Labor government of prioritising green activist interests over economic, and environmental imperatives.