$660m for Germany and Australia hydrogen supply chains

Australia and Germany have signed a deal to deepen cooperation on an Australia/Germany green hydrogen supply chain through a $660 million H2Global funding window to guarantee European buyers for Australia’s hydrogen.

The two countries agreed to elevate their existing Energy Partnership to an Energy and Climate Partnership, advancing joint work in climate action and cooperation, energy efficiency, the net zero transition and energy security, along with expanded cooperation on renewable hydrogen trade.

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

It was signed by Australian Minister for Climate and Energy Chris Bowen and German State Secretary for Economic Affairs and Climate Action Anja Hajduk in Brisbane today (pictured).

The State Secretary in the German Federal Ministry for Economic Affairs and Climate Action, Anja Hajduk said: “Australia is a key partner for Germany in our shared pursuit of climate neutrality, advancing the energy transition, and driving the growth of the hydrogen industry.

“The establishment of a joint H2Global funding window is a milestone in our efforts to establish a hydrogen market and demonstrate the feasibility of bilateral trade.”

A joint H2Global window will give Australian producers the opportunity to export to some of the world’s largest renewable hydrogen markets, including Germany.

Disruptions in global energy trade, highlighted by Russia’s invasion of Ukraine, have underscored the value of new and more resilient clean energy supply chains, of which Australia is well placed to play a part.

The Minister for Climate Change and Energy, Chris Bowen said: “Renewable hydrogen is key to Australia’s 21st century export prosperity.

“The world needs it. We can make it, and we can ship it to our partners, or use it to make green products, chemicals, and fuels in Australia to export to the world.

“Australia has the sun and wind to be a renewable energy superpower, and a hard-won reputation as a trusted energy supplier.

“A strong international hydrogen market supports our shared industrial decarbonisation and supports energy security in both Australia and Germany.”

The HySupply chain study, announced last year in Berlin, found hydrogen trade from Australia to Germany was economically feasible and highly desirable.

Bowen said: “This negotiation under the H2Global mechanism and the expanded Partnership with Germany will allow us to work together to seize the opportunity in hydrogen, and help realise Australia’s renewable energy superpower potential.

“The government’s plan to deliver a thriving hydrogen industry, through policies such as the Hydrogen Production Tax Incentive, Hydrogen Hubs and Hydrogen Headstart, is already solidifying our position as the trusted energy provider for global partners as the world decarbonises.”

Picture: Anja Hajduk and Chris Bowen