Report Description

Forecast Period

2024-2028

Market Size (2022)

USD 4.25 billion

CAGR (2023-2028)

4.26%

Fastest Growing Segment

Steam Methane Reforming

Largest Market

Australia Capital Territory & New South Wales

 

Market Overview

Australia Hydrogen Market has valued at USD 4.25 billion in 2022 and is anticipated to project robust growth in the forecast period with a CAGR of 4.26% through 2028. Australia’s hydrogen market is gaining significant momentum, driven by various strategic initiatives and investments aimed at developing a robust hydrogen industry. The government has identified hydrogen as a potential fuel capable of reducing emissions and is actively seeking to build a Hydrogen Energy Industry. In the 2023-24 Federal Budget, the Australian Government established the USD 2 billion Hydrogen Headstart initiative. This revenue support program is designed to accelerate the growth of the hydrogen market, providing critical financial support to emerging hydrogen projects and businesses, while also fostering innovation and collaboration within the industry. Australia currently has an active hydrogen production capacity of 10.2ktpa, which is expected to increase significantly in the coming years. Research and development activities are ongoing, focusing on improving hydrogen production technologies and increasing efficiency. Moreover, the government's commitment to renewable resources and sustainable energy solutions further strengthens Australia's position in the global hydrogen market. With substantial government investment, a strong focus on research and development, and a strategic approach to harnessing renewable resources, Australia's hydrogen industry is well-positioned for exponential growth. As the world continues to prioritize sustainable energy alternatives, Australia's burgeoning hydrogen market is poised to make a significant global impact, contributing to a cleaner and greener future for all.

Key Market Drivers

Growing Demand of Hydrogen in Automotive Industry

The automotive industry worldwide is currently undergoing a transformative shift as manufacturers increasingly embrace cleaner alternatives and move away from traditional fossil fuel vehicles. One such sustainable option gaining traction is hydrogen fuel cell vehicles (FCVs), which emit only water vapor as a by-product, making them environmentally friendly.

In Australia, companies like Hyundai are at the forefront of this transition, spearheading efforts to drive demand for hydrogen vehicles. Through strategic partnerships with Neoen, ActewAGL, and the Australian Capital Territory (ACT) government, Hyundai aims to reduce operating costs and enhance fueling accessibility, thereby accelerating the adoption of hydrogen vehicles.

Australia's vast renewable resources make it an ideal location for the production of green hydrogen, which is hydrogen produced using renewable energy sources. Fortescue, an Australian company, has ambitious plans to export a significant portion of its green hydrogen to power heavy vehicles, industries, and power grids on a global scale.

Recognizing the immense potential of the hydrogen industry, the Australian government is actively investing in its development. Funding initiatives like CSIRO's HyResource and HyLearning are aimed at creating awareness among the market and the Australian public about the numerous benefits and possibilities offered by hydrogen.

In conclusion, the increasing demand for hydrogen in the automotive industry serves as a major driving force behind Australia's burgeoning hydrogen market. Supported by proactive government initiatives and substantial investments, combined with the country's abundant renewable resources, Australia is poised to emerge as a global leader in the hydrogen industry, contributing to a more sustainable future.

Surge in Technological Advancements

Technological advancements in hydrogen production are revolutionizing Australia's efforts to decarbonize its economy. The declining cost of renewable energy, such as solar and wind power, is driving the feasibility of large-scale zero-emissions hydrogen production. This is expected to position Australia as a global leader in clean energy exports while significantly reducing its carbon footprint.

According to a recent study conducted by the Clean Energy Finance Corporation (CEFC), Australia's hydrogen market is projected to experience remarkable growth until 2050. This growth can be attributed to the continuous decline in hydrogen production and distribution costs, as well as advancements in end-use technologies. These improvements are making hydrogen a highly viable and commercially attractive energy source, further propelling technology and market development.

The development of a hydrogen export market is not only expected to bolster Australia's economy but also yield significant domestic benefits. For instance, utilizing hydrogen as energy storage has the potential to stabilize Australia's power grid, thus enhancing the country's energy security.

In conclusion, the surge in technological advancements is a fundamental driver behind Australia's burgeoning hydrogen market. As technology continues to evolve, Australia is uniquely positioned to harness the full potential of hydrogen, ultimately transforming its energy landscape, and actively contributing to a more sustainable global energy future. By embracing these advancements and capitalizing on its natural resources, Australia is poised to shape a brighter and greener future for generations to come.


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Key Market Challenges

High Cost of Production

At present, producing hydrogen from renewable sources, known as green hydrogen, is more expensive than traditional fossil fuel-based methods. This is largely due to the high upfront costs associated with the construction of electrolyzers, the technology used to split water into hydrogen and oxygen using electricity.

The high production costs pose a significant challenge for the growth of Australia's hydrogen market. They limit the competitiveness of hydrogen as an alternative energy source and can deter potential investors from entering the market. Additionally, the transportation and storage infrastructure required for green hydrogen adds to the overall costs.

However, these challenges also create an opportunity for technological innovation. As the industry continues to evolve, efforts are being made to improve the efficiency of electrolyzers, develop advanced materials, and enhance the overall hydrogen production process. Research and development initiatives are focusing on reducing the capital costs, increasing the efficiency of renewable energy sources, and finding more cost-effective ways to store and transport hydrogen.

In conclusion, while the high cost of production remains a challenge for Australia's hydrogen market, the country's strong commitment to renewable energy and technological innovation offer a clear path forward. Continued investments in research and development, collaboration between industry and academia, and supportive government policies are crucial in overcoming the cost barriers and unlocking the full potential of green hydrogen as a sustainable energy source.

Key Market Trends

Expansion of Hydrogen Infrastructure

Australia, with its abundant natural resources and expertise in energy export, possesses the potential to establish a thriving hydrogen industry within its borders. Recognizing this opportunity, the country's National Hydrogen Strategy, which was published in 2019, emphasizes the significance of developing a robust infrastructure to support hydrogen production.

As pilot projects progress towards industrial-scale production, the parallel advancement of Australia's hydrogen supply chain and critical infrastructure becomes imperative. This encompasses not only the establishment of hydrogen production facilities but also the development of efficient transportation and storage networks.

Australia has recently given the green light to plans for a renewable hydrogen plant in Victoria state, further bolstering the nation's capacity for hydrogen production. Moreover, Australian hydrogen companies are actively expanding their operations overseas, solidifying the global potential of Australia's hydrogen industry.

In conclusion, the expansion of hydrogen infrastructure stands as a prominent trend in Australia's hydrogen market, underscoring the country's steadfast commitment to harnessing the immense potential of hydrogen as a clean energy source. With ongoing investments in hydrogen infrastructure, Australia is poised to emerge as a leading force in the global hydrogen industry.

Segmental Insights

Technology Insights

Based on the category of technology, the steam methane reforming segment emerged as the dominant player in the Australian market for hydrogen in 2022. Steam Methane Reforming (SMR) has emerged as a highly efficient method for hydrogen production, boasting an impressive efficiency rate of about 74%. This makes it an incredibly attractive option for meeting the growing demand for hydrogen. Not only is SMR efficient, but it also offers cost-effectiveness, with the cost of hydrogen produced via SMR estimated to be around USD2.27 per kilogram.

In Australia, the current hydrogen production stands at around 650 kilotonnes per annum (ktpa), and the majority of this hydrogen is produced using Natural Gas Steam Methane Reforming. This is primarily due to Australia's abundant natural gas resources, which make SMR a practical and viable choice for hydrogen production in the country. By leveraging these resources, Australia is well-positioned to accelerate its hydrogen industry and contribute to the global transition towards cleaner energy solutions.

Application Insights

The petroleum refinery segment is projected to experience rapid growth during the forecast period. The petroleum industry has well-established infrastructure and processes in place for hydrogen production and utilization. Currently, the majority of hydrogen is derived from fossil fuels, with a significant portion being generated as a byproduct of petroleum refining. This existing infrastructure not only makes hydrogen production more cost-effective but also enables the petroleum industry to efficiently continue its use and production of hydrogen.

In Australia, the merchant market for hydrogen is currently negligible, with nearly all hydrogen production closely tied to end-use consumption. This means that the majority of hydrogen produced in Australia is primarily utilized within the industry that produces it, further solidifying the dominance of the petroleum refining sector.

By leveraging its existing infrastructure, the petroleum industry is well-positioned to contribute to the growth and development of the hydrogen economy. The utilization of hydrogen as an alternative energy source holds tremendous potential, and with the petroleum industry's expertise and resources, it can play a vital role in the transition towards a more sustainable and cleaner energy future.


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Regional Insights

Australia Capital Territory & New South Wales emerged as the dominant player in the Australia Hydrogen Market in 2022, holding the largest market share in terms of value. Both the New South Wales (NSW) and Australian Capital Territory (ACT) governments have been at the forefront of promoting and supporting the hydrogen industry. Recognizing the immense potential of hydrogen as a clean and sustainable energy source, they have taken proactive steps to foster its growth and utilization.

In NSW, the Electricity Infrastructure Roadmap outlines comprehensive strategies aimed at leveraging opportunities in the hydrogen sector. This includes not only the production of hydrogen but also its integration into the existing energy infrastructure. By doing so, NSW aims to maximize the benefits of hydrogen for various sectors, including transportation, industry, and power generation.

Similarly, in ACT, the government has established a renewable energy industry development strategy that places hydrogen as a key technology. By actively supporting the research, development, and deployment of hydrogen technologies, ACT aims to create a sustainable energy ecosystem that aligns with its ambitious climate and sustainability goals.

To further accelerate the progress in hydrogen technologies, both regions have made significant investments in research and development. For example, the University of New South Wales (UNSW) has been at the forefront of advanced research in hydrogen production and storage. Their cutting-edge studies contribute to the knowledge and technological advancements that will drive the future of the hydrogen industry.

Through these concerted efforts and strategic investments, NSW and ACT are positioning themselves as leaders in the hydrogen revolution, driving innovation, creating jobs, and paving the way for a cleaner and more sustainable energy future.

Recent Developments

  • In 2022, Fortescue Metals Group, a renowned Australian mining company, joined forces with CWP Renewables, a leading Australian renewable energy developer, to establish a state-of-the-art green hydrogen production facility in Western Australia. This groundbreaking collaboration endeavors to harness the potential of renewable energy sources like solar and wind power to produce an impressive annual output of up to 30,000 tonnes of green hydrogen. By leveraging sustainable technologies, this venture aims to contribute significantly to the global transition towards a greener and more sustainable future.

Key Market Players

  • Amtronics (Aust) Pty Ltd.
  • Energys Australia Pty Ltd.
  • Blue Energy Ltd
  • Hydrogen Systems Australia Pty Ltd.
  • Engie SA

 By Technology

By Application

By Region

  • Steam Methane Reforming
  • Membrane Cell Technology
  • Petroleum Refinery
  • Ammonia Cracking
  • Chemical & Petrochemical
  • Others
  • Victoria & Tasmania
  • Queensland
  • Western Australia
  • Northern Territory & Southern Australia
  • Australia Capital Territory & New South Wales

 

Report Scope:

In this report, the Australia Hydrogen Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

  • Australia Hydrogen Market, By Technology:

o   Steam Methane Reforming

o   Membrane Cell Technology

  • Australia Hydrogen Market, By Application:

o   Petroleum Refinery

o   Ammonia Cracking

o   Chemical & Petrochemical

o   Others   

  • Australia Hydrogen Market, By Region:

o   Victoria & Tasmania

o   Queensland

o   Western Australia

o   Northern Territory & Southern Australia

o   Australia Capital Territory & New South Wales

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Australia Hydrogen Market.

Available Customizations:

Australia Hydrogen Market report with the given market data, Tech Sci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

  • Detailed analysis and profiling of additional market players (up to five).

Australia Hydrogen Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]              

Table of content

1.    Product Overview

1.1.  Market Definition

1.2.  Scope of the Market

1.2.1.     Markets Covered

1.2.2.     Years Considered for Study

1.2.3.     Key Market Segmentations

2.    Research Methodology

2.1.  Objective of the Study

2.2.  Baseline Methodology

2.3.  Key Industry Partners

2.4.  Major Association and Secondary Applications

2.5.  Forecasting Methodology

2.6.  Data Triangulation & Validation

2.7.  Assumptions and Limitations

3.    Executive Summary

3.1.  Overview of the Market

3.2.  Overview of Key Market Segmentations

3.3.  Overview of Key Market Players

3.4.  Overview of Key Regions/Countries

3.5.  Overview of Market Drivers, Challenges, Trends

4.    Australia Hydrogen Market Outlook

4.1.  Market Size & Forecast

4.1.1. By Value

4.2.  Market Share & Forecast

4.2.1. By Technology (Steam Methane Reforming, Membrane Cell Technology)

4.2.2. By Application (Petroleum Refinery, Ammonia Cracking, Chemical & Petrochemical, Others)

4.2.3. By Region

4.2.4. By Company

4.3.  Market Map

4.3.1. By Technology

4.3.2. By Application

4.3.3. By Region

5.    Victoria & Tasmania Hydrogen Market Outlook

5.1.  Market Size & Forecast          

5.1.1. By Value

5.2.  Market Share & Forecast

5.2.1. By Technology

5.2.2. By Application

6.    Queensland Hydrogen Market Outlook

6.1.  Market Size & Forecast          

6.1.1. By Value

6.2.  Market Share & Forecast

6.2.1. By Technology

6.2.2. By Application

7.    Western Australia Hydrogen Market Outlook

7.1.  Market Size & Forecast          

7.1.1. By Value

7.2.  Market Share & Forecast

7.2.1. By Technology

7.2.2. By Application

8.    Northern Territory & Southern Australia Hydrogen Market Outlook

8.1.  Market Size & Forecast          

8.1.1. By Value

8.2.  Market Share & Forecast

8.2.1. By Technology

8.2.2. By Application

9.    Australia Capital Territory & New South Wales Hydrogen Market Outlook

9.1.  Market Size & Forecast          

9.1.1. By Value

9.2.  Market Share & Forecast

9.2.1. By Technology

9.2.2. By Application

10.  Market Dynamics

10.1.              Drivers

10.2.              Challenges

11.  Market Trends & Developments

11.1.              Recent Developments

11.2.              Product Launches

11.3.              Mergers & Acquisitions

12.  Policy & Regulatory Landscape

13.  Australia Economic Profile

14.  Competitive Landscape

14.1.          Amtronics (Aust) Pty Ltd.

14.1.1.  Business Overview

14.1.2.  Company Snapshot

14.1.3.  Products & Services

14.1.4.  Current Capacity Analysis

14.1.5.  Financials (In case of listed)

14.1.6.  Recent Developments

14.1.7.  SWOT Analysis

14.2.          Energys Australia Pty Ltd.

14.3.          Blue Energy Ltd

14.4.          Hydrogen Systems Australia Pty Ltd.

14.5.          Engie SA

15.  Strategic Recommendations

16.  About us & Disclaimer

Figures and Tables

Frequently asked questions

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The market size of the Australia Hydrogen Market was estimated to be USD 4.25 billion in 2022.

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The steam methane reforming segment demonstrated significant dominance in 2022. This is due to its high efficiency, cost-effectiveness, and Australia's abundant natural gas resources.

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Australia Capital Territory & New South Wales dominated the market with a revenue share in 2022. This is due to strategic location, research and development investment, renewable energy potential, and large-scale hydrogen production projects.

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Growing demand of hydrogen in automotive industry and surge in technological advancements are the major drivers for the Australia Hydrogen Market.

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Sakshi Bajaal

Business Consultant
Press Release

Australia Hydrogen Market to Grow with a CAGR of 4.26% through 2028

Jan, 2024

Surge in research and development activities is expected to drive the Australia Hydrogen Market growth in the forecast period, 2024-2028.