Government signs up Japan for first round of new $150mn trade programme aimed at supporting export supply chain
Australia has moved to strengthen its position as a supplier of clean hydrogen to Japan with the launch of a $150mn trade programme.
The five-year Australian Clean Hydrogen Trade Program will support projects to develop export supply chains and commercialise production of clean hydrogen and derivatives such as ammonia.
The first round of the programme will focus on Japan under an agreement signed this week by the two governments.
“Australia is a world leader in clean energy and our high-quality resources have long been in strong demand from our international partners. The Morrison government is positioning Australia to become the international clean hydrogen supplier of choice, and we are investing to make this reality,” says Angus Taylor, minister for industry, energy and emissions reduction.
Australia has several gigawatt-scale projects already announced and is expected to start operating in the second half of the decade. However, FIDs on these projects have not been made and are contingent on securing offtake agreements, underlining the importance of export trade with Japan and other markets.
Australia has been developing ties with export partners in Japan over the last couple of years. At least ten memorandums of understanding linking major Japanese firms with hydrogen-related projects in Australia are already in place, according to consultancy PwC.
Hydrogen trade between the two countries is set to reach a milestone this month with the arrival in Australia of the Suiso Frontier, the world’s first liquefied hydrogen carrier, which left the Port of Kobe in Japan on 24 December, according to shipbuilder Kawasaki Heavy Industries. The vessel is scheduled to return to Japan in February with a liquefied hydrogen cargo.
Japan will be importing 300,000t/yr of hydrogen by 2030, according to estimates by the country’s Ministry of Economy, Trade and Industry.
Source: Hydrogen Economist.