The Federal Republic of Germany and Australia have signed an agreement that paves the way for extensive investment in the Australian hydrogen industry. With a financing volume of 400 million euros, the expansion of large-scale plants for the production of green hydrogen in Australia is to be driven forward. The agreement, which was concluded as part of the H2Global funding mechanism, aims to guarantee Australian producers a secure supply and thus accelerate the development of the hydrogen economy.
Bilateral cooperation for a greener future
In Brisbane, the Australian Minister for Climate and Energy, Chris Bowen, and the German State Secretary Anja Hajduk signed the Memorandum of Understanding. The Federal Ministry for Economic Affairs and Climate Protection (BMWK) emphasised the importance of this step in deepening international cooperation and establishing robust supply chains for green hydrogen and its derivatives.
A centrepiece of the agreement is the establishment of a ‘financing window’ of 400 million euros by the H2Global Foundation. It is intended to bring together European buyers and Australian producers of hydrogen via auctions. The costs of the bilateral auction window will be shared equally by both governments.
H2Global: Innovative auctions for market development
In addition to the hydrogen initiative, both countries are planning to expand their existing energy partnership into a more comprehensive ‘energy and climate partnership’. This expanded cooperation will focus more on topics such as climate protection, energy efficiency and energy security. A second memorandum of understanding was signed to this end in order to set the framework for this intensified cooperation.
Federal Economics Minister Robert Habeck emphasised the pioneering role of both countries on the path to a sustainable industry and society. He emphasised that the joint hydrogen auctions as part of H2Global will boost the market and provide ‘urgently needed price signals’.
Outlook: Deepening the energy and climate partnership
With a forecast annual hydrogen demand of 95 to 130 TWh by 2030 in Germany, more than half of which will probably have to be imported, this agreement is of crucial importance for the energy transition. At the same time, the Australian government sees this as an opportunity to give its emerging hydrogen industry a significant boost.
Energy Minister Chris Bowen announced that projects across the country will be able to apply for support under the programme, with funding available for the next 10 years and guaranteed offtake agreements.
