Australia and Germany sign alliance on green hydrogen supply chain

Australia and Germany have signed a bilateral alliance to establish the Australia-Germany Hydrogen accord, which will facilitate a green hydrogen supply chain between the two countries.

German Economy Minister Peter Altmaier and Education and Research Minister Anja Karliczek, together with their Australian counterpart Energy and Emissions Reduction Minister Angus Taylor, have signed a letter of intent to set up the Australia-Germany Hydrogen Accord.

Australia is looking to the partnership to become a major hydrogen exporter, while Germany will be using their expertise in hydrogen technology and planning the import of significant quantities of sustainably produced hydrogen.

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

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

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

“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,” Minister Taylor announced.

“Getting new technologies like hydrogen to cost parity will enable substantial reductions in global emissions, while strengthening existing industries and creating new ones,” he said.

The Accord features three major initiatives:

1. Establishing the German-Australian Hydrogen Innovation and Technology Incubator (HyGATE) to support real-world pilot, trial, demonstration and research projects along the hydrogen supply chain. Australia and Germany have respectively committed up to $50 million and €50 million to establish HyGATE.
2. Facilitating industry-to-industry cooperation on demonstration projects in Australian hydrogen hubs.
3. Exploring options to facilitate the trade of hydrogen and its derivatives produced from renewables (such as ammonia) from Australia to Germany, including through Germany’s H2Global Initiative, which supports long-term supply agreements with German industry.

The 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.