German-Australian hydrogen supply chain investment of $90 million
Australian Minister for Climate Change and Energy Chris Bowen announced Friday that Australia and Germany have committed A$50 million ($35.5 million) and 50 million euros ($54.4 million), respectively, in support of a joint initiative to establish a green hydrogen supply chain.
It was reported by Reuters that the two countries, which signed a bilateral agreement on hydrogen production and trade in June 2021, had announced funding for four projects as part of the German–Australian Hydrogen Innovation and Technology Incubator (HyGATE). By collaborating, Australia further strengthens its renewable energy export infrastructure, while Germany is able to meet its growing energy needs through cleaner sources of energy.
By splitting water using electrolyzers powered by renewable energy, green hydrogen can be produced. As a result of the earmaked funds, Australian cleantech firms Vast Solar and Solar Methanol Consortium received grants worth A$19.48 million and 13.2 million euros, respectively.
These grants will be used to build an electrolyser producing green hydrogen in Port Augusta, South Australia, for the production of solar methanol. Hysata, an electrolyser company, received A$8.98 million to work with the Fraunhofer Institute for Production Technology in Germany to develop a novel ‘capillary-fed’ electrolyser for low-cost hydrogen production in Port Kembla.
According to the Office of the Chief Economist at the Federal Department of Industry, Science and Resources, hydrogen projects represent A$266 billion of potential investment. According to the Australian government, there are 705 billion dollars worth of energy and resource projects in the pipeline.
“Working hand-in-hand with our international partners will help Germany to phase out coal-fired power generation by 2038 and aid Australia to reach net zero by 2050,” said German Minister of Education and Research Bettina Stark-Watzinger.