Australia Hydrogen Market Size and Analysis by Application Areas, Upcoming Projects, Policies and Key Players to 2030

Abstract

This report discusses the status of Australia's emerging hydrogen market, providing an overview of its current market position, its pipeline projects, future capacity scenarios, hydrogen policies, as well as the key players and demand sectors for low carbon hydrogen in Australia.

Australia currently contributes less than 1% to global active hydrogen production capacity. However, the country's wind and solar resources combined with the falling cost of producing renewable energy will greatly increase the opportunities for low carbon hydrogen production. As a result, it has one of the largest pipeline capacities for green hydrogen, making the country an early adopter within the market.

Furthermore, the country's supply of platinum is expected to increase in the longer term which will boost domestic electrolyzer production, with two mines under construction and a further seven in the feasibility stage.

Australia's hydrogen market will also benefit from policies at both the national and regional level. The country launched its national hydrogen strategy in 2020 and has set aside over $2B in its 2023/ 2024 budget for the low carbon hydrogen industry, which will chiefly be distributed through its Hydrogen Headstart Program.

The program aims to support the development of large-scale hydrogen projects through competitive production contracts. A number of regional governments such as New South Wales, Queensland, Western Australia, and Tasmania have set up regional targets and incentives, which will further help to scale hydrogen production capacity.

Interest in low carbon hydrogen is increasing across a broad range of sectors. Ammonia is the dominant end use sector according to a current list of active and pipeline projects and has the potential to account for up to 4mtpa of hydrogen production capacity. The second most dominant end use sector is transportation.

The use of hydrogen and its derivatives as a fuel will be helped by policies such as the Guarantee of Origin scheme, which will certify the low carbon credentials of hydrogen and other renewable products.

Key Highlights

• Australia current has a low standing within the global hydrogen market, accounting for less than 1% of active capacity.
• The country accounts for 18% of global hydrogen capacity within post-feasibility projects. This is a positive signal for the country's domestic hydrogen market, with a significant proportion of its projects being within a relatively advanced stage of development relative to the global market.
• However, with the likelihood of increasing financial support, technological development, and the growth of hydrogen markets around the world, it has the potential to reach the high case scenario of 9.5 mtpa capacity by 2030.
• Between 2022 and 2010, the cost of generating electricity from onshore wind and solar has fallen by 38% and 85%, respectively, and is foreseen to continue falling in the run up to 2025.
• Australia's 2023/24 Budget: The budget sets aside over $2 billion for the nation's renewable hydrogen industry. Of this sum, $2 billion will be provided to Hydrogen Headstart, which will provide support for large scale renewable hydrogen projects through competitive production contracts. This funding will facilitate the development of the country's flagship projects, which will set Australia up for to 1GW of electrolyzer capacity by 2030.
• Unsurprisingly, leading hydrogen project developer Provaris Energy Ltd recorded the most mentions of hydrogen within its filings, accounting for 289 mentions between 2021 and 2023.

Scope

• Hydrogen country market analysis
• Total upcoming capacity and 2030 market size scenarios, highlighting recently announced projects by capacity
• Demand across different application sectors
• National and regional policy support and financial incentives

Reasons to Buy

• Identify the market trends within the country and key players in hydrogen technologies.
• Develop market insight of current, in development and announced capacity and latest trends of the sector.
• Understand the Australia's different scenarios for 2030 based on the likeliness of the projects.
• Look at the demand in key application areas for the country.
• Understand how and where the market is growing as hydrogen's importance to national and international agendas rapidly increases.