Australia and Germany have deepened their cooperation on new green hydrogen supply chains, committing A$660 million (€400 million) through a H2Global funding window that guarantees European buyers for Australia’s renewable hydrogen producers.
The bilateral initiative, announced by Australian Minister for Climate Change and Energy, Chris Bowen, and German State Secretary for Economic Affairs and Climate Action, Anja Hajduk, would form part of the Germany’s H2Global auction mechanism to bolster global renewable hydrogen supply chains.
The countries signed a Joint Declaration of Intent to each contribute half (€200 million) to the H2Global tender, marking Australia’s first involvement in the program and its first agreement with a nation south of the equator.
The initiative seeks to address the cost-of-difference between renewable hydrogen and traditional fuels, focusing on clean hydrogen derivatives like ammonia and methanol.
Australia’s participation in H2Global will facilitate renewable hydrogen shipping corridors to Europe, giving Australian producers the opportunity to export to some of the world’s largest renewable hydrogen markets, including Germany, establishing new green supply chains with Europe.
Europe will benefit from competitively priced, clean energy products.
Chris Bowen said: “This negotiation under the H2Global mechanism and the expanded Partnership with Germany will allow us to work together to seize the opportunity in hydrogen, and help realise Australia’s renewable energy superpower potential.
“The Albanese Government’s plan to deliver a thriving hydrogen industry, through policies such as the Hydrogen Production Tax Incentive, Hydrogen Hubs and Hydrogen Headstart, is already solidifying our position as the trusted energy provider for global partners as the world decarbonises.”
H2Global Foundation executive director Susana Moreira said the landmark agreement between Australia and Germany marks a major step towards global markets for clean fuels, and builds on the success of the first H2Global pilot auction.
The H2Global mechanism now has €5.83 billion of funds in its pipeline to help create and scale clean fuel markets. The double-sided auction mechanism delivers price signals and investment decisions that accelerate the energy transition.
The first hydrogen purchase auction is expected to begin in 2025, with the initial sales auction targeted for 2027-2028.
Australia’s green hydrogen potential
Renewable hydrogen produced in Australia could play a significant role globally through export of hydrogen-embodied products.
“Renewable hydrogen is key to Australia’s 21st century export prosperity. The world needs it. We can make it. And we can ship it to our partners, or use it to make green products, chemicals and fuels in Australia to export to the world,” said Bowen.
Australian company Provaris Energy Ltd (ASX:PV1, OTC:GBBLF) is developing a portfolio of integrated green hydrogen projects, leveraging its innovative compressed hydrogen bulk storage and carrier.
Provaris recently conducted a concept design study that reaffirmed the energy-efficient and cost-effective nature of its compressed hydrogen technology for regional marine transport. The study highlighted the advantages of compression of hydrogen in gaseous form over ammonia conversion, including lower energy consumption and costs, allowing for higher volumes of hydrogen delivery.
This study assessed a 540-megawatt (MW) capacity reservation export site, producing 10 tonnes of hydrogen per hour (87,000 tonnes per year) with an intra-European shipping distance of 1,000 nautical miles using the H2Neo carrier to deliver gaseous hydrogen to the customer at 70 barg (a metric unit of gauge pressure).
“This study has increased our confidence and understanding that many regional-European sites with a material level of renewable power reservation can significantly benefit from compression when compared to the alternative of converting hydrogen into ammonia for marine transport,” said Provaris Energy product development director Garry Triglavcanin.