Updated hydrogen strategy includes stretch target of 30 million TPA

The federal government has released its new hydrogen strategy, describing it as “a comprehensive formal review and update” of the 2019 version and coming as Australia boasts one of the largest pipelines of projects for any nation.

In a statement from energy minister Chris Bowen on Friday, the updated document was described as a blueprint to develop “new domestic clean energy manufacturing capabilities and capitalise” on what are massive export opportunities.

One forecast by the International Energy Agency (IEA) – its Announced Pledges Scenario – has international low-emission hydrogen production growing from 30 million tonnes in 2030 to more than 250 million tonnes by 2050.

According to the IEA, under 1 million tonnes of low-emissions hydrogen was made globally in 2022, “very similar to in 2021”.

The federal government’s May budget included a $2 billion expansion to the Hydrogen Headstart program for large-scale green hydrogen projects and $6.7 billion from 2027 over a decade for production tax credits.

These would help “unlock $50 billion in private sector investment and see Australia’s annual domestic production capacity exceed 1 million tonnes of green hydrogen by 2030” according to Bowen.

The strategy sets five-year milestones for hydrogen output, with a target of producing at least 15 million tonnes of hydrogen annually and a “stretch potential” of 30 million tonnes by 2050.

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

“It sends a clear signal to trading partners about the future marketplace in Australia for hydrogen and hydrogen-based fuels. We’re already seeing the benefits of this through expanded trading agreements with key partners such as Germany.”

The strategy was compiled with input from the federal, state and territory governments and industry, with an output from this of four objectives and 34 actions and associated enablers.

The four objectives are:

• A hydrogen industry that is globally cost-competitive;
• Demanding, identifying and supporting the most prospective hydrogen demand sectors;
• Communities are aware of and realise the benefits of hydrogen; and
• Establishing trade at scale and leveraging purposeful partnerships.\

The strategy can be accessed here.

Picture: Fortescue’s Gladstone, Queensland electrolyser factory (credit Fortescue)