Investment confidence in Australia’s green hydrogen industry has received a $660 million boost following a joint declaration with Germany to negotiate supply chains that guarantee European buyers for Australian products.
From pv magazine Australia
The Australian government has signed a deal with Germany to negotiate new green hydrogen supply chains and guarantee European buyers for Australia’s renewable hydrogen producers.
The joint declaration of intent to negotiate the AUD 660 million ($403.7 million) deal is equally funded by both governments and will form part of the German government’s H2Global auction mechanism.
Non-profit H2Global uses a double-auction mechanism through its subsidiary and government-backed company, Hydrogen Intermediary Network Company (Hint.co), which buys and sells green power-to-X (PtX) products, typically from early stage developers to help grow the hydrogen economy.
Australia and Germany have extended their energy partnership to include climate action, energy efficiency, net zero transition, and energy security. This expanded cooperation also covers renewable hydrogen trade.
German Vice Chancellor and Minister for Economic Affairs and Climate Action Robert Habeck said the energy and climate partnership and the declaration for bilateral H2Global auctions marks a significant step forward.
“We are convinced that the energy and climate partnership will provide numerous opportunities for fruitful private collaborations and we are confident that joint hydrogen auctions under H2Global will kick-start the market and provide urgently needed price signals,” said Habeck.
Australian Energy Minister 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,” 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.”
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