Germany, Australia Sign Hydrogen Deal, Aims to Produce the Cheapest Clean Hydrogen in the World

Germany and Australia on Sunday signed a bilateral alliance on hydrogen production and trade to attempt to facilitate a renewable energy-based hydrogen supply chain between the two nations. Education and Research Minister Anja Karliczek and Economy Minister Peter Altmaier signed a letter of intent to establish a "Germany Australia Hydrogen Accord" with Australian Energy and Emissions Reduction Minister Angus Taylor, according to the German Economy Ministry in a statement.

According to the press release, the cooperation was about allowing the import of sustainably produced hydrogen in relevant volumes. This is an important factor to reach the more rigid climate targets. Australia would like to develop a clean ammonia and hydrogen production chain to cut carbon, build up new export markets, and depart from fossil fuels.

Development of Hydrogen Industry

The two countries will invest in a series of new initiatives to bolster the development of a hydrogen industry. This will create new economic opportunities and jobs as it reduces emissions.

Australian Prime Minister Scott Morrison has inked the deal to develop technology to help reach "a net zero emissions future." However, he continues to resist international pressure to formally commit Australia to a clear 2050 deadline. With the climate crisis taking a precedent on the final day of the G7 summit in Cornwall, England, the PM stuck to his preferred approach of centering on technologies including hydrogen instead of signing up to more ambitious long-term and medium-emission reduction commitments, reported The Guardian.

In a statement, according to Morrison, international collaboration was the key to getting new energy technologies including hydrogen to commercial parity. He stated, "Our ambition is to produce the cheapest clean hydrogen in the world, which will transform transport, mining, resources and manufacturing at home and overseas," reported Reuters.

The two nations could take advantage of Australia's limitless solar resources and utilize German electrolysis technology, according to Altmaier. Karliczek remarked her ministry will fund a technology incubator named HyGate with €50 million ($60.53 million) over three years to test technologies from production through to transport and storage.

The Accord builds on the nations' respective strengths. Australia is looking to be a significant hydrogen exporter and Germany is holding expertise in hydrogen technology and looking to import major quantities of hydrogen in the future.

He said, "Our ambition is to produce the cheapest clean hydrogen in the world, which will transform transport, mining, resources, and manufacturing at home and overseas. Developing new low emissions industries means more jobs for Australian workers, and cheaper energy means lower costs for businesses so they can reinvest in hiring more people," reported the website of the Prime Minister of Australia.

The Australian prime minister met with the German chancellor, Angela Merkel, on Sunday. They declared the "hydrogen accord" to improve collaboration in research, technology innovation, deployment, and development to build a global hydrogen industry. Their joint statement indicated that the Australian PM and chancellor of Germany discussed their mutual commitment to ambitious action on climate change in accordance with the Paris agreement.