Success factors for Australia’s hydrogen export industry

New analysis by PwC Australia’s Integrated Infrastructure team details the steps needed for green hydrogen production costs in Australia to decline rapidly over the coming decades, fulfilling Australia’s opportunity to be a leader in production and export.

In a new multi-part series, Getting H2 right - Success factors for Australia’s hydrogen export industry, PwC Australia’s Integrated Infrastructure team states the case for why Australia’s abundant land and high-capacity-factor renewable energy can become the building blocks to produce globally-competitive green hydrogen to service a growing international market.

“Both industry and government will need to act in unison to demonstrate that Australia has the desire and capability to attract investment in its hydrogen export industry,” said PwC Australia Integrated Infrastructure partner Lachy Haynes. 

“Australia is not alone in this pursuit, and will be competing with other energy-rich, export-oriented nations such as Saudi Arabia, South Africa, Morocco and Chile. It’s critical that export pathways, confidence and reputation are established today so that Australia remains at the forefront as the hydrogen export industry develops.”

The first installment of the Hydrogen series, Producing at globally competitive prices, identifies the need for Australia to to drive down production costs, fast, by enabling reductions in the cost of large-scale electrolysers, increasing the efficiency of electrolysers, growing the domestic manufacturing capability and through sustained investment in low-cost renewable energy. 

The series will continue over the coming weeks by looking at the steps needed in infrastructure investment, development of regulations and fostering partnerships to successfully capture the export opportunity. 

Australia’s forecast green hydrogen production cost

“Over the longer term, there is great potential for Australia to play a leading role in a globally traded hydrogen market,” Haynes said.

“Australia must put this opportunity at the forefront to demonstrate its intent and conviction in a green hydrogen future, or risk innovation and investment being deployed elsewhere.”

New analysis by PwC Australia’s Integrated Infrastructure team details the steps needed for green hydrogen production costs in Australia to decline rapidly over the coming decades, fulfilling Australia’s opportunity to be a leader in production and export.

In a new multi-part series, Getting H2 right - Success factors for Australia’s hydrogen export industry, PwC Australia’s Integrated Infrastructure team states the case for why Australia’s abundant land and high-capacity-factor renewable energy can become the building blocks to produce globally-competitive green hydrogen to service a growing international market.

“Both industry and government will need to act in unison to demonstrate that Australia has the desire and capability to attract investment in its hydrogen export industry,” said PwC Australia Integrated Infrastructure partner Lachy Haynes. 

“Australia is not alone in this pursuit, and will be competing with other energy-rich, export-oriented nations such as Saudi Arabia, South Africa, Morocco and Chile. It’s critical that export pathways, confidence and reputation are established today so that Australia remains at the forefront as the hydrogen export industry develops.”

The first installment of the Hydrogen series, Producing at globally competitive prices, identifies the need for Australia to to drive down production costs, fast, by enabling reductions in the cost of large-scale electrolysers, increasing the efficiency of electrolysers, growing the domestic manufacturing capability and through sustained investment in low-cost renewable energy. 

The series will continue over the coming weeks by looking at the steps needed in infrastructure investment, development of regulations and fostering partnerships to successfully capture the export opportunity. 

Australia’s forecast green hydrogen production cost

“Over the longer term, there is great potential for Australia to play a leading role in a globally traded hydrogen market,” Haynes said.

“Australia must put this opportunity at the forefront to demonstrate its intent and conviction in a green hydrogen future, or risk innovation and investment being deployed elsewhere.”