Australian Government commits to releasing $50 billion for hydrogen investment opportunities
Australia and Germany have signed a new hydrogen deal.
The government is aiming for its National Hydrogen Strategy to attract $50 billion in private sector investment and increase annual green hydrogen production to 1 million tonnes by 2030.
Chris Bowen, the minister for climate change and energy, revealed these targets at the APAC Hydrogen Summit in Brisbane on Sept. 13.
“Scaling our industry will bring significant benefits to communities, drive broader economic growth, and play a crucial role in Australia’s journey towards achieving net zero emissions,” Bowen stated.
The department has set annual production goals of up to 15 million tonnes by 2050, with progress tracked through five-year milestones.
Bowen also highlighted the potential benefits of the strategy for Indigenous communities, stating, “We are reshaping our energy sector, and this presents an opportunity to collaborate with First Nations communities to promote engagement, equity, and ownership, moving from managing welfare to managing wealth.”
Efforts to Develop Hydrogen Industry
The 2024 National Hydrogen Strategy is primarily focused on accelerating the clean hydrogen industry and supporting large-scale development.
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In May, the government allocated $4 billion to the Hydrogen Headstart program. Bowen noted that the program included $2 million for Indigenous engagement.
“This $2 million is just the beginning, intended to pave the way for more significant participation—specifically, from First Nations in the multi-billion dollar creation of a green hydrogen industry in Australia,” Bowen explained.
“I have previously remarked that only 1 percent of Australian renewable energy projects involve Indigenous ownership, compared to 20 percent in Canada. This indicates that while there is much work to be done, there is a path to achieve it.”
Germany and Australia Commit to Hydrogen Agreement
The APAC Hydrogen Summit also featured speeches 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 revealed a new agreement between Australia and Germany to establish green hydrogen supply chains through a €400 million ($660 million) H2Global funding initiative, ensuring European buyers for Australia’s renewable hydrogen producers.
The Joint Declaration of Intent for the €400 million deal will be jointly funded by both governments and integrated into Germany’s H2Global auction system.
This joint initiative will enable Australian producers to export to major renewable hydrogen markets, including Germany, creating new green supply chains with Europe and supporting Future Made in Australia, as per the government’s announcement.
Robert Habeck, German vice-chancellor and minister for Economic Affairs and Climate Action, emphasized that the agreement would help future-proof industry and society.
“The signing of the Energy and Climate Partnership today and the joint declaration for bilateral H2Global auctions represent significant progress in our mutual commitment to addressing contemporary challenges.”
Opposition’s Energy Policy Still in Development
Meanwhile, the federal opposition has approached climate change policy cautiously.
Opposition Leader Peter Dutton has prioritized unity within the party, focusing on reducing power costs, ensuring energy security, and boosting the manufacturing sector.
He has indicated that the Coalition’s final policy on emissions and energy will not be rushed.
Dutton has often criticized the Labor government for favoring environmental activism over economic and environmental necessities.
