Australia Emerges as Largest Hydrogen Producer... Synergy Expected from Cooperation with Korean Companies

[Asia Economy Reporter Suyeon Woo] KOTRA published a report on the 6th to introduce Australia's hydrogen economy policy, which has selected green hydrogen production and export as the next-generation growth engine, to Korean companies. This is to increase the possibility of cooperation with Korean companies by understanding the trends of Australia's hydrogen economy.

According to the report titled "Trends in Australia's Hydrogen Economy and Directions for Cooperation with Korean Companies" published by KOTRA, as carbon neutrality has emerged as a global challenge, Australia, a major coal-exporting country, is accelerating its transition to a hydrogen production and export nation. The Australian government announced a technology investment roadmap in March last year, aiming to secure competitiveness by lowering the hydrogen production cost to less than 2 Australian dollars per kilogram by 2030 and to completely shut down coal-fired power plants, which emit 80% of total greenhouse gases, by 2040.

Furthermore, according to the carbon neutrality goals mentioned in Australia's National Hydrogen Strategy (2019), the Australian government plans to export 75% of its total hydrogen production by 2050 and create approximately 8,000 jobs, thereby achieving a transition to a hydrogen economy.

This report conducted an in-depth investigation into Australia's carbon neutrality implementation measures and promotion strategies amid the new phase of the hydrogen economy by examining ▲ the background of Australia's energy transition ▲ Australia's hydrogen industry ecosystem and regional projects ▲ the Australian government's hydrogen strategy and promotion plans. It also suggested directions for cooperation between the Korean and Australian hydrogen industries through an analysis of Australia's external hydrogen cooperation status and included information on major exhibitions and 69 key companies in Australia's hydrogen industry.

According to the technology investment roadmap mentioned in the report, Australia plans to achieve carbon neutrality through the development of eco-friendly technologies rather than taxes. Along with this, the strategy is to lead the hydrogen economy by focusing on the 'production and transportation' stages of the hydrogen value chain.

According to the Australian National Geological Resources Institute, about 11% of Australia's land area has natural conditions optimized for hydrogen production, giving it a geographical advantage in securing hydrogen production facilities compared to competing countries. Additionally, leveraging close geographical proximity to major Asian countries such as Korea and Japan, Australia plans to emerge as the largest hydrogen producer and exporter.

However, Australia lacks infrastructure and technology in the stages of hydrogen transportation, storage, and utilization, and hopes to cooperate with Korea, which leads in hydrogen utilization technologies such as hydrogen vehicles. At the G7 bilateral summit in June, Australian Prime Minister Scott Morrison emphasized the importance of inter-country technological cooperation in responding to climate change, stating, "Australia's hydrogen energy production and Korea's hydrogen economy can create synergistic effects."

The report also explains the Australian government's hydrogen strategy and the promotion plans of eight state governments. Since announcing its first roadmap in 2018, Australia revealed a technology investment roadmap last March, investing 1.6378 trillion KRW in five low-carbon emission technologies. The Australian government plans to release annual low-carbon emission technology statements, complete technology development by 2030, and then focus on expanding productivity to grow the hydrogen economy.

Choi Kyu-cheol, head of KOTRA's Melbourne Trade Center, said, "The hydrogen economy is now an unstoppable trend of the era," adding, "If Australia, which has an environment favorable for hydrogen production, cooperates with Korea, which has strengths in utilization technologies, it will bring a win-win outcome for both countries."

This content was produced with the assistance of AI translation services.