Women’s Entrepreneurship Day: women leading the transformation of the energy sector
Nov 19, 2024
Committed
Australia is demonstrating strong leadership in the development of the green hydrogen industry. Its abundance of renewable resources, favourable government policies and a number of ambitious projects position the country as a key player among economies firmly committed to decarbonisation.
In fact, according to a recent study published by the Australian government, the country has a significant competitive advantage in the production of decarbonised energy-intensive goods. The low cost of renewable electricity, which is expected to become even more competitive in the future, and the abundance of natural resources make Australia a very favourable environment for the development of the hydrogen industry, among others.
Australia has a significant competitive advantage in the production of decarbonised energy-intensive goods
To capitalise on this potential, the Australian government has implemented a number of policies and invested significantly in green hydrogen projects to improve its position in the hydrogen industry by 2030. To this end, it is promoting the removal of market barriers, stimulation of supply and demand, and cost competitiveness.
Despite the competitive advantages, the green hydrogen industry in Australia faces a number of challenges. Reducing production costs, developing storage and transmission infrastructure, and creating stable markets are some of the barriers to be overcome.
The opportunities are huge. Australia can become a leading exporter of green hydrogen, creating jobs, boosting local economies and contributing to global decarbonisation.
In fact, CSIRO, Australia’s National Research Agency, estimates that by 2050 the green hydrogen industry will create around eight thousand jobs a year, contribute 11 billion dollars to the country’s GDP and significantly reduce greenhouse gas emissions in Australia, one of the world’s largest per capita emitters of carbon dioxide.
CSIRO estimates by 2050 the creation of around eight thousand jobs per year and a contribution of 11 billion dollars to the country’s GDP thanks to the green hydrogen industry
Another priority for the Australian government is the creation of hydrogen hubs to increase local demand until the industry develops to a level where the country can also become an exporter of green hydrogen.
The main targets of these hubs are to achieve sustainable development of energy infrastructure, increase economies of scale and promote synergies with various sectors, including transport, industry and gas distribution networks, to use hydrogen and to integrate hydrogen technologies into electricity systems.
Beyond the incentives and synergies, the National Hydrogen Strategy, published in 2019 and revised in 2023, provides a solid framework for the development of this industry. And the government has already implemented a number of measures to encourage investment, innovation and public-private partnerships.
In fact, the Australian authorities have invested more than 770 million euros to date to accelerate the hydrogen industry. More than a third of this has been gone into the creation of seven green industrial hydrogen centres in the country’s interior.
Australia has several major hydrogen projects underway, such as the Asian Renewable Energy Hub in Pilbara, Western Australia, where several electrolyser plants with a total capacity of 14 GW are to be commissioned. The project will cost 36 billion US dollars and could be ready by 2027 or 2028.
Australia has several major hydrogen projects underway
Similarly, in April this year, Australia’s Prime Minister announced a 420 million dollars investment in hydrogen and carbon capture projects.
There are a growing number of initiatives such as wind turbines and solar panels to produce green hydrogen, particularly in the desert interior of the country, which has thousands of square kilometres with hours of sunshine and constant strong winds.
One of these areas, known as South Australia, is a global example of a commitment to sustainability. In just over 15 years, it has generated 74% of its electricity from renewable sources. Its challenge is to become a net producer of 100% renewable energy by 2027, thanks to its terrain, wind and solar conditions. All of this is supported by adequate regulation and strategic investments.