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]