Australian and German joint funding deal to stimulate hydrogen production

A joint financing agreement will unite Australian innovation with German expertise to accelerate renewable hydrogen production.

Australia and Germany boost research into renewable hydrogen production through $100 million joint funding deal. The deal, which is part of the German-Australian Hydrogen Innovation and Technology Incubator – HyGATE, will include funding for four joint projects, including the world’s first solar methanol plant and 10 MW of electrolyzed hydrogen that will harness the country’s first major solar thermal project . in Port Augusta, South Australia. Two of the green hydrogen projects represent the final stage of what could be gigawatt-scale projects in Queensland and New South Wales.

The two-gigawatt scale hydrogen green hydrogen projects

One of the green hydrogen projects, the EGH2 project, will be delivered under a partnership between Edify Energy and Siemens Energy and will be developed in Townsville, north Queensland. EGH2 will deploy a 17.5 MW Siemens Energy electrolyser with 21 MW of solar PV to facilitate renewable hydrogen production.

The project is the first phase of the planned 1 GW green hydrogen production which will export hydrogen globally through the Port of Townsville and has the potential to impact the wider Australian-German supply chain.

Edify Energy CEO John Cole said: “Australia’s place on the world stage as a leading supplier of green hydrogen is taking shape and we look forward to doing what we do best – delivering the economic, environmental and deliver social benefits of green hydrogen to communities of North Queensland and the world.”

The Atco ScaleH2 project is the first step towards another planned gigawatt-scale electrolyzer project and 800,000 ktpa green ammonia facility in the Illawarra region of New South Wales. The project will develop and implement a strategy for a hydrogen export value chain from New South Wales to German customers.

Why is renewable hydrogen production important?

Hydrogen is the most common substance in the Universe, mainly used as a raw material for industry. Currently, hydrogen is mainly produced from methane in an emissions-intensive process. For hydrogen to be used to help the green energy transition, renewable hydrogen production is therefore essential. Renewable hydrogen can reduce emissions in hard-to-control industries and some transport sectors.

HyGate will facilitate clean hydrogen production by playing on both nations’ respective strengths – Australia’s expertise in hydrogen production and export, and Germany’s expertise in hydrogen technology.

Australia’s Minister for Climate Change and Energy, Chris Bowen MP, said: “Collaboration with Germany will help grow Australia’s hydrogen export market and support our country’s vision of a renewable energy supermoon.

“These projects demonstrate Australia’s role as a world leader in renewable energy production, reducing the cost of hydrogen production and paving the way for exports.”

Bettina Stark-Watzinger, German Federal Research Minister, said: “With our joint initiatives HySupply and HyGATE, we have laid the foundations early for a long-term German-Australian hydrogen partnership. My goal is that the first delivery by 2030 at the latest Germany will arrive. Today we are a big step closer to implementing a hydrogen supply chain from Australia to Germany.”