Australia, Germany commit $123m to fund hydrogen projects

A hydrogen pipeline in Duisburg, Germany, on Nov 16, 2021. PHOTO: EPA-EFE

MELBOURNE (REUTERS) - Australia and Germany plan to spend around US$90 million (S$123 million) to fund hydrogen projects as part of a joint push to speed up development of the clean fuel to help cut carbon emissions, the Australian government said on Tuesday (Nov 23).

Germany has committed €50 million (S$76.7 million) and Australia A$50 million (S$49.3 million) towards the alliance, first announced in June.

"The recent release of the first report from HySupply, our joint Australian-German hydrogen supply chain study, found there is great potential for Australian hydrogen to supply growing demand in Germany," Energy Minister Angus Taylor said in a statement.

The two sides will start accepting bids for funding from the joint Hydrogen Innovation and Technology Incubator, called HyGate, in the first quarter of 2022.

"Being able to draw on Germany's expertise in hydrogen technology will help our domestic industry add value and reduce costs in all stages of the hydrogen supply chain," said Assistant Industry Minister Tim Wilson.

Australia's conservative government is betting on hydrogen to help the country meet its target of net-zero emissions by 2050 as it looks to wean the country off coal and gas.

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