Australia and Germany have signed an historic deal to deepen cooperation on new green hydrogen supply chains through a $660 million (€400 million) H2Global funding window to guarantee European buyers for Australia’s renewable hydrogen producers. The deal comes as the two countries agreed to elevate their existing Energy Partnership to an Energy and Climate Partnership, advancing joint work in climate action and cooperation, energy efficiency, the net zero transition and energy security, along with expanded cooperation on renewable hydrogen trade.
The Joint Declaration of Intent to negotiate the $660 million deal, equally funded by the governments of both countries, would form part of the German Government’s H2Global auction mechanism. It was signed by Australian Minister for Climate and Energy Chris Bowen and German State Secretary for Economic Affairs and Climate Action Anja Hajduk in Brisbane on 13-09-24.
A joint H2Global window will give 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 and supporting a Future Made in Australia. Renewable hydrogen produced in Australia could play a significant role globally through export of hydrogen-embodied products.
Cooperation on an H2Global window scheme will further strengthen the relationship between the two countries under the expanded Energy and Climate Partnership. Disruptions in global energy trade, highlighted by Russia’s illegal invasion of Ukraine, have underscored the value of new and more resilient clean energy supply chains, of which Australia is well placed to play a part.
The HySupply chain study, announced last year in Berlin by Australian Minister Bowen with German Minister for Education and Research Bettina Stark-Watzinger, found hydrogen trade from Australia to Germany was economically feasible and highly desirable. Both governments are acting to secure these opportunities for Australian and German industry.
Australia’s participation in the H2Global scheme is a groundbreaking step, marking the first agreement with a country south of the equator. The H2Global mechanism facilitates the import and export of clean fuels such as renewable hydrogen derivatives, including ammonia and methanol, from regions with cost-effective production to high-demand markets.
This strategic partnership will enable Australia to establish renewable hydrogen shipping corridors to Europe and beyond, while providing Australian companies access to European markets for hydrogen and ammonia. In turn, Europe will benefit from competitively priced, clean energy 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 Australian Minister for Climate Change and Energy, Chris Bowen. “Australia has the sun and wind to be a renewable energy superpower, and a hard-won reputation as a trusted energy supplier.
Australian Minister for Climate Change and Energy, Chris Bowen. – Image: DCCEEW/Josh Wilson
A strong international hydrogen market supports our shared industrial decarbonisation and supports energy security in both Australia and Germany. We’re fortunate to be able to collaborate so closely with like-minded partners on this historic initiative. 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.”
“Germany and Australia lead the way towards a future-proof industry and society, “said German Vice Chancellor and Minister for Economic Affairs and Climate Action, Robert Habeck. “The energy transition as a main pillar of climate action coupled with international cooperation enables us to get to fast, secure and affordable solutions for the challenge of climate change.
German Vice Chancellor and Minister for Economic Affairs and Climate Action, Robert Habeck – Image: BMWK/Dominik Butzmann
Today’s signing of the Energy and Climate Partnership and the declaration for bilateral H2Global auctions marks a significant step forward in our shared commitment to addressing those challenges of our time, ” noted Habeck. “This partnership is not just a declaration; it’s a pathway to tangible action that strengthens our economies and supports the global transition to net zero.”
More information on the H2Global scheme can be found at h2-global.org.
(NN/DCCEEW/h2-global.org 13-09-24)
