26 August 2024, Canberra – We are pleased to release the full Outcomes Report and Summary Report from the Australia-EU Green Hydrogen Dialogue, a project funded under the European Union’s Climate Dialogues (EUCD) initiative. This reporting capture the insights, challenges, and actionable recommendations from a series of high-level discussions held between March and June 2024. The dialogues brought together key stakeholders from Australia and the European Union to explore the critical aspects of green hydrogen production, investment, and trade, with a shared goal of accelerating the global energy transition.
Key Themes and Insights
The Australia-EU Green Hydrogen Dialogue series focused on five major themes, each addressing essential components of the green hydrogen value chain:
Scaling Up Green Hydrogen: The dialogues highlighted the global state of green hydrogen production, stressing the need for strategic investments in research and development (R&D), particularly in scaling electrolyser production and deployment. The importance of EU offtake agreements to unlock Australia’s green hydrogen economy was underscored, along with the need for collaboration between Australian and EU ports to overcome infrastructure challenges.
Green Financing: Financing was identified as a critical barrier to advancing green hydrogen projects, especially in moving from the feasibility study phase to final investment decisions (FID). The report recommends increased government support through market-making schemes like the US Inflation Reduction Act (IRA) and the EU Hydrogen Auction, alongside the development of interoperable sustainable finance taxonomies between the EU and Australia.
Supply Chain Challenges: Australia’s renewable energy potential positions it as a key player in green hydrogen production. However, challenges such as community acceptance and infrastructure limitations must be addressed. Strategic infrastructure investments and technological innovation are vital to optimise the hydrogen value chain, with the EU’s regulatory leadership offering significant opportunities for Australia.
Social Licence and Environmental Impacts: The dialogues emphasised the importance of a just transition, where the benefits and burdens of energy innovations are equitably distributed. Building community trust through early engagement and transparent communication is crucial. The report also highlights the need for clear standards and certifications to ensure community buy-in and environmental sustainability.
Opportunities Beyond Hydrogen: The potential of hydrogen derivatives, such as renewable ammonia and methanol, in decarbonising the maritime sector was a key discussion point. The report calls for an enabling framework that includes standards, regulations, and sectoral strategies to fully realise the benefits of Power-to-X (PtX) technologies.
Recommendations for Action
The report details a series of recommendations for different stakeholder sectors, aimed at overcoming the identified challenges and accelerating the deployment of green hydrogen. Some of the key recommendations include:
For the Australian Federal Government: Enhance funding support for project developers and off-takers, increase investment in R&D to bring emerging technologies to market, and foster greater cooperation with the EU on knowledge sharing and joint research initiatives.
For State and Local Governments: Improve coordination and support for planning, land purchase, and infrastructure upgrades, and actively involve local businesses in hydrogen projects to boost regional economies and gain social licence.
For Industry and Business: Conduct market analysis on the impact of green hydrogen integration on product pricing, engage with local communities early in project development, and transparently communicate the complexities and risks associated with hydrogen projects.
For the Research Community: Focus on scalable research efforts, enhance collaboration with industry to de-risk technologies, and participate in cross-jurisdictional research exchanges to align with global developments.
The Australia-EU Green Hydrogen Dialogues underscored the immense potential of renewable hydrogen in driving the global energy transition. By identifying key areas for collaboration and action between Australian and European stakeholders, this report provides a roadmap for building a robust and sustainable hydrogen economy. The continuous exchange of knowledge and experiences between the EU and Australia will be crucial in overcoming the challenges and leveraging the opportunities in the green hydrogen sector, ultimately contributing to global efforts in mitigating climate change and promoting energy security.
