Australia targets 15m tonnes of renewable hydrogen by 2050

The Albanese government has set ambitious targets for renewable hydrogen production, aiming for at least 15 million tonnes annually by 2050. This initiative was announced by Climate Minister Chris Bowen, who emphasized the importance of maintaining Australia's position in the global energy market amidst rising international hydrogen demand. The strategy updates a previous plan from 2019 and aims to support decarbonization efforts in sectors that are difficult to electrify. Bowen highlighted the government's commitment to investing in the hydrogen sector, with $4 billion allocated for 'head start projects' and an additional $8 billion over the next decade to subsidize production. A significant partnership with Germany was also announced, involving a $660 million investment to develop green hydrogen, showcasing Australia's proactive approach to energy supply chains in light of global disruptions, such as the conflict in Ukraine. The Australian Hydrogen Council's CEO, Fiona Simon, described the national strategy as a crucial evolutionary step for the industry, countering claims that the sector was failing. The government aims to lower production costs to compete with fossil fuels and other hydrogen sources, as global demand for hydrogen is projected to increase significantly, potentially reaching up to 420 million tonnes per year. Despite some critics prematurely declaring the hydrogen sector 'dead,' Bowen asserted that Australia’s green hydrogen pipeline remains robust and is poised for growth. The government's strategy reflects a strong commitment to renewable energy and positions Australia as a key player in the future hydrogen market.