A rare consensus has emerged in Australia's otherwise highly polarized energy policy: The development of a hydrogen export industry represents an overlap of interests between more progressive and more conservative groups. Divergences exist, however, with respect to energy sources. While one side is focused on Australia's great potential for renewable energy, the other side is working to give fossil-based hydrogen a central role. How the federal government intends to move forward will become clear in the national hydrogen strategy planned for the end of 2019.

This report, co-authored by Raffaele Piria, provides a comprehensive overview of the hydrogen debate in Australia. The first part describes the process at the federal level and outlines the activities of the states and territories.The authors shed light on the framework conditions for hydrogen production in Australia and consider the potential export market and domestic market. They then explain the main drivers of the debates, including climate policy and the importance of security of supply, and key demonstration projects. Finally, the report offers an analysis of the potential for cooperation with Germany concludes the paper.

The report was prepared on the occasion of the Australian-German Energy Symposium in Melbourne, Victoria, on September 18-19, 2019.