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Summary
- Germany and Australia recently signed a bilateral agreement on hydrogen production and trade.
- The project would explore options to ease the renewable energy supply chain between the two countries.
- The deal would also empower Australia to produce cheaper-clean-hydrogen. That would again help the country to transform its transport, mining, and manufacturing.
Australia needs to speed up its transition to renewable energy. Currently, it is the largest per-capita emitter among the world’s wealthiest countries. So far, Australia has been unsuccessful in matching with the United States and other nations to reach the goal of “net-zero emissions” by 2050. This is because industries in the country still majorly depend upon fossil fuels and, thus, cause hazards to the environment.
While Australia is trying to transition to net-zero emissions, a silver lining has appeared. Germany and Australia recently signed a bilateral agreement.
On 13 June 2021, the countries announced the Declaration of Intent between the Government of Australia and the Government of Germany on the Australia-Germany Hydrogen Accord.
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READ MORE: Here’s why net zero-emission is a pressing priority
The new accord brings a ray of hope for Australians as international agreements help countries build a reliable and robust system for renewables.
Details of Australia-Germany accord
Germany and Australia signed a bilateral agreement on hydrogen production and trade. Under the new accord, the German-Australian Hydrogen Innovation and Technology Incubator (HyGATE) would be established. Both the countries are collectively dedicating over a billion worth of funds to establish HyGATE. The project would explore options to ease the renewable energy supply chain between the two countries.
INTERESTING READ: Biden's push for hydrogen fuel adds muscle to the climate fight
Copyright © 2021 Kalkine Media
Interestingly, Australia is blessed with abundant land and energy resources coupled with an excellent track record and reputation as a reliable energy partner. Besides, the Australia-Germany agreement is likely to have positive repercussions in the renewable sector.
Will the accord boost low emissions in Australia?
To reach climate change targets, sustainable energy is of utmost importance. Although hydrogen is renewable, fossil fuels are still needed to produce hydrogen fuels. The new agreement can be beneficial as it may enable the trade of sustainably produced hydrogen in the needed volume.
The deal would also empower Australia to produce cheaper-clean-hydrogen which may help the country to transform its transport, mining, and manufacturing. Mega energy firms, including German Utility RWE and Uniper, are now looking for new trade routes for hydrogen and other renewables from Australia.
Both countries are likely to invest in new initiatives to boost the hydrogen industry. This can help Australia shift their dependency on exhaustible sources of energy. The initiative will not only help Australia reduce its overall emissions but will also create new job opportunities.
The goal price for producing hydrogen is set at AUD 2 a kilogram of hydrogen. It makes the price of hydrogen competitive with the prices of energy sources that produce higher emissions. So, if the overall cost of hydrogen becomes less, Australia can boost low emissions.
There’s another very significant point that must not be missed.
Building demand for future low emissions energy exports can help Australia’s emerging hydrogen industry scale up and attract investment. Besides, an Australian hydrogen industry could generate more than 8,000 jobs and deliver over AUD 11 billion a year in GDP by 2050- as per a report from the Prime Minister of Australia’s office.
Conclusively, under the new accord, Australia and Germany will invest in a series of new initiatives to fast-track the development of a hydrogen industry, that can create new economic opportunities and jobs, while reducing emissions.
REFER: Australia needs to react to climate change- here’s why.
