Supporting the hydrogen market ramp-up and securing imports for Germany
The Australian-German Energy and Climate Partnership is actively supporting hydrogen cooperation, playing to the complementarities of both countries in the renewable hydrogen space. Key collaborations include the recently announced bilateral H2Global tender for renewable hydrogen trade, supported by both nations with 400 Mio. EUR.
Background
The German-Australian Energy and Climate Partnership has been working on hydrogen for the last few years. The Governments of Australia and Germany further strengthened cooperation through the Australia-Germany Hydrogen Accord of 2021. Australia has the renewable resources, space, and economic prerequisites to become a major global producer and exporter of renewable hydrogen and hydrogen products. This is complementary to Germany’s interest in securing hydrogen imports as well as promoting German technology and services abroad.
Challenge and Goal
The development of the global hydrogen market ramp-up has been going slower than anticipated due to a range of reasons. To reach the shared goal of climate neutrality, both the Australian and German government realise the need to accelerate the market ramp-up and cooperate to have the necessary volumes of renewable hydrogen available needed for the decarbonization of the industry, transport, and the power sector. The goal of the Energy and Climate Partnership is to accelerate the market ramp-up through the facilitation of governmental and industrial cooperation.
Action taken
Over the past couple of years, several measures have been implemented through the Secretariat of the Partnership and cooperating organisations. These range from delegations to Germany and Australia, networking and match-making events, knowledge sharing through informational events as well has high-level visits from both countries. Most notably, State Secretary Anja Hajduk and Climate and Energy Minister Chris Bowen signed a Joint Declaration of Intent in September 2024 to establish a bilateral H2Global tender, co-funded by both governments with 400 Mio. EUR in total. The bilateral tender will be instrumental in supporting Australian renewable hydrogen production and exports to Germany. At the same time, direct business-to-business cooperation is also supported through the Partnership. After a business delegation travelled to Australia in September 2024, a German consortium is currently forming that plans to set up a cooperation with an Australian project for hydrogen export to Germany.
Impact
The Australian and German interests in renewable hydrogen are very complementary. While Australia plans to emerge as a major producer and exporter, Germany will need significant imports and wants to establish its hydrogen industry internationally. Through the activities of the Partnership, concrete initiatives and cooperations such as the bilateral H2Global tender emerge which will initiate bilateral trade.
