Australia and Germany to launch hydrogen funding initiative

Out-Law News | 29 Nov 2021 | 5:44 am | 1 min. read

Australia and Germany will work together to launch and administer a hydrogen funding initiative for supporting real-world pilot, trial, and research projects in the hydrogen supply chain.

Known as the German-Australian Hydrogen Innovation and Technology Incubator (HyGATE), the initiative will be co-developed by the Australian Renewable Energy Agency (ARENA) and Germany’s Federal Ministry of Education and Research (BMBF), according to a statement by ARENA.

Hydrogen expert George Varma at Pinsent Masons said: “The continued collaboration between Germany and Australia demonstrates the commitment by both countries to solidify the foundations upon which their domestic markets will be built. The diversity in approach and thinking will drive further innovation in a developing hydrogen market and no doubt result in a strengthening of the trading relationships between both countries. It is this type of collaboration that will propel the rapid development of low carbon technologies which is needed for effective decarbonisation. This is a fantastic initiative that will greatly benefit both Germany and Australia.”

Australia and Germany have committed AU$50 million (US$36m) and €50m respectively to build up HyGATE. It is one of three initiatives developed as part of the Declaration of Intent between the governments of Australia and Germany on the Australia-Germany Hydrogen Accord which were signed in June. Australia’s fund will be provided from the AU$566m committed in the 2021-2022 budget initiative.

The projects funded under the HyGATE initiative must be linked to hydrogen from renewables, must be innovative, and must “advance novel solutions on a pilot-scale under real-world conditions”.

The funding initiative is expected to be open during January to March 2022.

According to ARENA, the HyGATE initiative will support the goals of the Australian government’s Technology Investment Roadmap and ARENA’s strategic priority of commercialising clean hydrogen.