The hydrogen economy in Australia is receiving substantial support from the government. An announcement states that two hydrogen energy hubs will receive $150 million in funding as the government aims to expand the industry.
The investment comes on top of the $1.2 billion set aside for hydrogen in the 2021 – 22 Budget. The prospective sites for hydrogen hubs in Australia are now 7 including the Hunter Valley in NSW, the Pilbara in WA, and Bell Bay in Tasmania. Other locations are in Darwin, Gladstone in Queensland, South Australia’s Eyre Peninsula, and Victoria’s Latrobe Valley.
The climate change investment from the government is expected to assist the potential locations to build on existing infrastructure and facilitate hydrogen exports abroad. Hydrogen is one of the main low-carbon fuels the country is counting on to build a sustainable economy. It also aims to become a major player in the industry by 2030 through Australia’s National Hydrogen Strategy.
“We are accelerating the development of our Australian hydrogen industry and it is our ambition to produce the cheapest clean hydrogen in the world, transforming our transport, energy, resources and manufacturing sectors,” said Prime Minister Scott Morrison.



The new hydrogen energy hubs will also accelerate the rate of cost reduction for hydrogen as the country’s goal is to produce it locally for less than $2 per kilogram. According to Energy Minister Angus Taylor, Australia hopes for a thriving hydrogen sector that will help the country not only achieve emissions reduction but also boost the economy’s growth, new jobs and support existing industries.
The federal government has committed to reduce emissions by up to 26% compared with 2005 emissions levels.
The government support for the expansion of the hydrogen industry is setting an example for countries around the world that policies and priorities committed to future growth align with climate change actions.