(Bloomberg) — Australia, one of the world’s largest natural gas exporters, expects to begin exporting green hydrogen overseas by the end of the decade, aiming to become the global leader in supplying the zero-emission fuel.
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Government stimulus of about A$8 billion ($5.4 billion) over the next decade is expected to unlock A$50 billion in private investment, according to an updated National Hydrogen Strategy released Friday. That would enable annual production of at least 500,000 tonnes of hydrogen made from renewable energy and at least 200,000 tonnes of exports by 2030.
Australia has been trying to ramp up production of green hydrogen, seen as key to cutting emissions in energy-intensive industries like steelmaking. While its vast open spaces give it a geographical advantage to build the solar farms and wind turbines needed to power the electrolyzers, BloombergNEF expects the U.S., Europe and China to account for 80% of the supply by 2030.
“Hydrogen will play an important complementary role in electrification by opening up net zero pathways for hard-to-mitigate industries,” said Energy Minister Chris Bowen. “By using our world-leading renewable energy sources to make renewable hydrogen, we can open up new domestic manufacturing opportunities, such as green metals and chemicals, low-carbon liquid fuels, and energy exports to our international partners.”
Australia published the first version of its hydrogen strategy in 2019. The updated blueprint sets out four objectives for the country’s hydrogen market, including identifying the most promising demand sectors and building an industry that is cost-competitive.
The government has also signed an agreement with Germany that will unlock A$660 million in joint investment in Australian hydrogen projects.
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