Hydrogen electrolyser manufacturing could create 4000 Australian jobs by 2050
A new CSIRO report outlines Australia’s potential to lead in renewable hydrogen production through local manufacturing and supply chains.
Australia could generate $1.7 billion in revenue and create nearly 4000 jobs by 2050 through hydrogen electrolyser manufacturing, according to a new report by CSIRO Futures. The national science agency’s findings outline the potential of building a domestic industry to support renewable hydrogen production while bolstering local energy capabilities.
Electrolysers use electricity to split water into hydrogen and oxygen, providing a foundation for renewable hydrogen industries. The report identifies an opportunity for Australia to position itself as a leader in manufacturing these devices, leveraging its growing pipeline of renewable hydrogen projects and translating innovations from the country’s research sector into commercial solutions.
“Building an electrolyser manufacturing sector isn’t just about meeting immediate demand; it’s an opportunity to develop an industry that adds long-term value to our economy and strengthens our energy security through building sovereign manufacturing capability,” said Energy Lead at CSIRO Futures Vivek Srinivasan, stressing the importance of moving quickly to capture this market.
CSIRO's analysis suggests that a coordinated effort between government, industry, and researchers could unlock the full potential of the hydrogen electrolyser sector. Suggested measures include:
- Creating aggregated demand by connecting hydrogen manufacturing with other clean energy opportunities to encourage investment.
- Developing partnerships to ensure domestic value retention while engaging internationally.
- Establishing manufacturing hubs in areas with access to renewable electricity, addressing cost barriers like labour and logistics.
Beyond manufacturing, the report forecasts $1.2 billion in revenue and an additional 1000 jobs in electrolyser installation services by 2050, driven by the need for equipment procurement and maintenance across Australia’s renewable hydrogen projects.
Dr Patrick Hartley, Leader of CSIRO’s Hydrogen Industry Mission, highlighted the opportunity to secure a meaningful share of the international electrolyser market, saying, “Australia has a significant pipeline of renewable hydrogen projects, with specific electrolyser procurement and maintenance needs."
"If we can use our natural and technical advantages to develop a geographically aligned supply chain, Australia could reap the economic and environmental benefits of owning a significant portion of the electrolyser market.”
The report urges stakeholders to act promptly, as other countries are also expanding their hydrogen manufacturing capabilities. By capitalising on its renewable energy resources and existing technical expertise, Australia could take a leading role in the transition to renewable hydrogen.
