New Energy Bulletin: Australia’s National Hydrogen Strategy; Australia and Germany sign Joint Declaration of Intent to negotiate

On 13 September 2024, the Australian Government released its 2024 National Hydrogen Strategy (the Strategy).¹

The Strategy’s vision is for a clean, innovative, safe and competitive hydrogen industry that benefits Australia’s communities and economy, enables our net zero transition, and positions us as a global hydrogen leader.²

The Strategy recognises that hydrogen has the potential to be a critical element of the global energy transition and Australia, given its renewable energy advantages, is well positioned to foster a hydrogen, and hydrogen derivative, manufacturing and export industry.³ As shown in Figure 10 below, hydrogen demand is expected to increase significantly over time.⁴

In order to achieve Australia’s global ambitions, the Strategy sets out a framework (a pictorial representation of which has been extracted below) that:⁵

1. has overarching objectives, which are each supported by targets, milestones and actions; and
2. acknowledges the importance of a collaborative approach across States and Territories as well as consistent policy review and integration.⁶

The Hamilton Locke New Energy team will provide further insights and updates on the National Hydrogen Strategy in the coming weeks.

Australia and Germany sign joint declaration of intent to negotiate

In addition, at the Asia-Pacific Hydrogen Summit on 13 September 2024, Australia and Germany signed a Joint Declaration of Intent to negotiate a $660m H2Global Green Hydrogen funding window, which would form part of the German Government’s H2Global auction mechanism.⁷ This initiative aims to address the cost-of-difference of hydrogen while establishing global supply chains for renewable hydrogen projects.⁸ H2Global uses a double-auction mechanism whereby H2Global’s intermediary, Hintco, acts as a market maker by entering into contracts to buy and sell hydrogen.⁹ The key feature of this mechanism is that the gap between the purchase and sale price is covered by grants from public or philanthropic bodies.¹⁰

The Hamilton Locke team advises across the energy project life cycle – from project development, grid connection, financing, and construction, including the buying and selling of development and operating projects. For more information, please contact Matt Baumgurtel.

¹Department of Climate Change, Energy, the Environment and Water, ‘Australia’s National Hydrogen Strategy’ (13 September 2024) <https://www.dcceew.gov.au/sites/default/files/documents/national-hydrogen-strategy-2024.pdf>.

²Ibid.

³Ibid.

⁴Ibid, page 16.

⁵Ibid, page 63.

⁶Ibid.

⁷Department of Climate Change, Energy, the Environment and Water, ‘Joint media release: $660m to advance Australia and Germany’s cooperation on energy and climate’ (13 September 2024) <https://minister.dcceew.gov.au/bowen/media-releases/joint-media-release-660m-advance-australia-and-germanys-cooperation-energy-and-climate>.

⁸H2Global Stiftung, ‘Australia and Germany commit EUR 400 million to joint H2Global auction’ (13 September 2024) <https://www.h2-global.org/news/australia-and-germany-commit-eur-400-million-to-joint-h2global-auction>; also see ‘Hintco, by H2Global’ <https://www.hintco.eu/>.

⁹‘Hintco, by H2Global’ <https://www.hintco.eu/>.

¹⁰Hintco, ‘How it works’ <https://www.hintco.eu/how-it-works>.