Australia and Germany partner in $660 million deal to boost hydrogen exports
Australia and Germany have signed a $660 million agreement to develop green hydrogen supply chains, supporting Australia's renewable hydrogen exports to Europe through the H2Global initiative.
Australia and Germany have entered an advanced phase of energy collaboration by signing a new agreement to support green hydrogen supply chains. The deal, part of Germany's H2Global funding scheme, will allow Australian hydrogen producers to export to European markets, particularly Germany.
The Joint Declaration of Intent, co-funded by both governments, aims to provide guaranteed European buyers for Australian renewable hydrogen, creating robust supply chains. It was signed by Australian Climate Change and Energy Minister Chris Bowen and German State Secretary for Economic Affairs and Climate Action Anja Hajduk in Brisbane on Friday.
The agreement marks an expansion of the existing energy partnership between the two nations into an Energy and Climate Partnership, which focuses on renewable energy, climate action, and the net zero transition.
A dedicated H2Global funding window will help Australian producers access key renewable hydrogen markets in Europe. Renewable hydrogen from Australia could become a valuable export, either directly or through hydrogen-embedded products. This initiative comes as the two countries seek to strengthen ties, particularly in light of global energy challenges that have highlighted the need for more resilient clean energy supply chains.
The collaboration follows last year's HySupply study, which demonstrated the feasibility and economic potential of exporting hydrogen from Australia to Germany. Both governments are committed to securing this opportunity for their industries.
Minister Chris Bowen commented on the agreement, saying, “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.”
German Vice Chancellor and Minister for Economic Affairs Robert Habeck highlighted the broader context of the partnership, stating, “Germany and Australia lead the way towards a future-proof industry and society. Today’s signing of the Energy and Climate Partnership and the declaration for bilateral H2Global auctions marks a step forward in our shared commitment to addressing the challenges of our time.”
Both governments are hopeful that the joint hydrogen auctions under the H2Global framework will support the growth of the international hydrogen market, creating opportunities for industries on both sides and fostering industrial decarbonisation. State Secretary Anja Hajduk added that Australia is a crucial partner in achieving climate neutrality and accelerating the growth of the hydrogen sector.
