Out-Law News 1 min. read
11 Jan 2022, 2:14 am
Australia has announced the first round of funding under its clean hydrogen trade programme (ACHTP), focussed on exports to Japan.
The A$150 million (US$110m) ACHTP aims to attract foreign investment into hydrogen supply chains originating in Australia and will support domestic hydrogen supply chain projects which secure foreign public and private investment, according to a statement by the Australian government.
The first round of funding will be targeted to exports of clean hydrogen to Japan under the Japan-Australia Partnership on Decarbonisation through Technology, which was signed by the two governments in June 2021.
Hydrogen expert George Varma at Pinsent Masons said: “Investing in the development of trade ties between Australia and Japan is a strategic move by both governments as both countries forge ahead to decarbonise their respective economies.”
“Japan has set aggressive net-zero timeframes and is transitioning to a hydrogen powered economy very quickly. So it will be important for Australia to also move with haste to grow its hydrogen market and invest in research and development to find economic and efficient ways to transport hydrogen from the shores of Australia to Japan. Much is already happening in this space and funding to support these types of projects will be key to growth and the strengthening of this important trading relationship,” he said.
The ACHTP will support projects for developing export supply chains and commercialising the production of clean hydrogen and derivative compounds based on clean hydrogen, such as clean ammonia. The programme will be funded over five years from the A$565.8m pledged by the Australian government for international partnerships for low emission technologies, included in the 2021-22 budget, said the statement.
Australian prime minister Scott Morrison said the programme would help to meet Australia's commitment to reduce emissions by working with other countries to reduce the cost of clean energy technologies.
In September 2021, the Australian government announced an additional A$150m in funding for hydrogen hubs across seven prioritised regional sites.
