Australia, Germany to invest in a series of new hydrogen initiatives

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Australia and Germany will work together to accelerate the development of a hydrogen industry in an effort to create new economic opportunities and jobs while reducing emissions.

The Australia-Germany Hydrogen Accord builds on Australia’s existing collaboration with Germany on low emissions technologies including hydrogen, with a two-year supply chain study between the two countries already underway.

The Accord includes three major initiatives, including the establishment of a German-Australian Hydrogen Innovation and Technology Incubator (HyGATE) to support real-world pilot, trial, demonstration and research projects along the hydrogen supply chain. Under the agreement, Australia and Germany will both commit up to $50 million each to establish HyGATE.

The second initiative will aim to facilitate industry-to-industry cooperation on demonstration projects in Australian hydrogen hubs, with the third initiative to explore options to facilitate the trade of hydrogen and its derivatives produced from renewables (such as ammonia) from Australia to Germany.

Announcing the Accord, Prime Minister Scott Morrison said international collaboration focused on technological innovation was key to getting new energy technologies like hydrogen to commercial parity.

“Our partnership with Germany will accelerate the development of an Australian hydrogen industry and create new jobs,” Mr Morrison said.

“Our ambition is to produce the cheapest clean hydrogen in the world, which will transform transport, mining, resources and manufacturing at home and overseas.

“Developing new low emissions industries means more jobs for Australian workers, and cheaper energy means lower costs for businesses so they can reinvest in hiring more people.”

Minister for Energy and Emissions Reduction Angus Taylor said getting new technologies like hydrogen to cost parity with existing technologies was ‘the only way to reduce emissions without imposing taxes or new costs on households, businesses and industry’.

“Australia is playing its role in the global effort to reduce emissions by driving down the cost of low emissions technologies,” Minister Taylor continued.

“Clean hydrogen is a priority under the Technology Investment Roadmap and we’re excited to be working with Germany to bring this new industry to life.

“We have a mix of all the key ingredients needed to be a major global player in a thriving global clean hydrogen industry – abundant land and energy resources coupled with an excellent track record and reputation as reliable energy partner.

“We have set the goal of producing hydrogen at less than $2 a kilogram – ‘H2 under 2’, the price at which hydrogen becomes competitive with higher emitting alternatives.”

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