Australia and Germany sign $443m green hydrogen deal

This will be equally funded by the two countries.

The Australian and German Governments have expanded their partnership with the signing of the $443m (A$660m) H2Global funding window that will guarantee European buyers for the former’s renewable hydrogen producers. 

According to the Department of Climate Change, Energy, the Environment and Water, the joint declaration of intent to negotiate the multimillion-dollar deal, equally funded by the governments of both countries, would form part of Germany’s H2Global auction mechanism.

The deal comes as the two countries agreed to enhance their existing Energy Partnership to an Energy and Climate Partnership, advancing joint work in climate action and cooperation, energy efficiency, the net zero transition and energy security, along with expanded cooperation on renewable hydrogen trade.

“This negotiation under the H2Global mechanism and the expanded Partnership with Germany will allow us to work together to seize the opportunity in hydrogen, and help realise Australia’s renewable energy superpower potential,” said Australian Minister for Climate Change and Energy Chris Bowen.

“We are convinced that the Energy and Climate Partnership will provide numerous opportunities for fruitful private collaborations. And we are confident that joint hydrogen auctions under H2Global will kick-start the market and provide urgently needed price signals,” said German Vice Chancellor and Minister for Economic Affairs and Climate Action Robert Habeck.

Australia recently released its 2024 National Hydrogen Strategy that laid out its framework for production, use, and export of hydrogen, as it aims to become an industry leader.

US$1 = A$1.49