Joint media release: $660m to advance Australia and Germany’s cooperation on energy and climate

The Hon Chris Bowen, Minister for Climate Change and Energy

The Hon Robert Habeck, German Vice Chancellor and Minister for Economic Affairs and Climate Action 

Australia and Germany have signed an historic deal to deepen cooperation on new green hydrogen supply chains through a $660 million (€400 million) H2Global funding window to guarantee European buyers for Australia’s renewable hydrogen producers.

The deal comes as the two countries agreed to elevate their existing Energy Partnership to an Energy and Climate Partnership, advancing joint work in climate action and cooperation, energy efficiency, the net zero transition and energy security, along with expanded cooperation on renewable hydrogen trade.

The Joint Declaration of Intent to negotiate the $660 million deal, equally funded by the governments of both countries, would form part of the German Government’s H2Global auction mechanism.

It was signed by Australian Minister for Climate and Energy Chris Bowen and German State Secretary for Economic Affairs and Climate Action Anja Hajduk in Brisbane today.

A joint H2Global window will give Australian producers the opportunity to export to some of the world’s largest renewable hydrogen markets, including Germany, establishing new green supply chains with Europe and supporting a Future Made in Australia.

Renewable hydrogen produced in Australia could play a significant role globally through export of hydrogen-embodied products.

Cooperation on an H2Global window scheme will further strengthen the relationship between the two countries under the expanded Energy and Climate Partnership.

Disruptions in global energy trade, highlighted by Russia’s illegal invasion of Ukraine, have underscored the value of new and more resilient clean energy supply chains, of which Australia is well placed to play a part.  

The HySupply chain study, announced last year in Berlin by Australian Minister Bowen with German Minister for Education and Research Bettina Stark-Watzinger, found hydrogen trade from Australia to Germany was economically feasible and highly desirable.

Both governments are acting to secure these opportunities for Australian and German industry.

More information on the H2Global scheme can be found at h2-global.org.

Quotes attributable to Australian Minister for Climate Change and Energy, Chris Bowen:

“Renewable hydrogen is key to Australia’s 21st century export prosperity. The world needs it. We can make it. And we can ship it to our partners, or use it to make green products, chemicals, and fuels in Australia to export to the world.

“Australia has the sun and wind to be a renewable energy superpower, and a hard-won reputation as a trusted energy supplier.

“A strong international hydrogen market supports our shared industrial decarbonisation and supports energy security in both Australia and Germany. We’re fortunate to be able to collaborate so closely with like-minded partners on this historic initiative.

“This negotiation under the H2Global mechanism and the expanded Partnership with Germany will allow us to work together to seize the opportunity in hydrogen, and help realise Australia’s renewable energy superpower potential.

“The Albanese Government’s plan to deliver a thriving hydrogen industry, through policies such as the Hydrogen Production Tax Incentive, Hydrogen Hubs and Hydrogen Headstart, is already solidifying our position as the trusted energy provider for global partners as the world decarbonises.”

Quotes attributable to German Vice Chancellor and Minister for Economic Affairs and Climate Action, Robert Habeck:

"Germany and Australia lead the way towards a future-proof industry and society.

“The energy transition as a main pillar of climate action coupled with international cooperation enables us to get to fast, secure and affordable solutions for the challenge of climate change.

“Today's signing of the Energy and Climate Partnership and the declaration for bilateral H2Global auctions marks a significant step forward in our shared commitment to addressing those challenges of our time.

“This partnership is not just a declaration; it's a pathway to tangible action that strengthens our economies and supports the global transition to net zero.

“We are convinced that the Energy and Climate Partnership will provide numerous opportunities for fruitful private collaborations. And we are confident that joint hydrogen auctions under H2Global will kick-start the market and provide urgently needed price signals."

Quotes attributable to State Secretary in the German Federal Ministry for Economic Affairs and Climate Action, Anja Hajduk:

“Australia is a key partner for Germany in our shared pursuit of climate neutrality, advancing the energy transition, and driving the growth of the hydrogen industry.

“With the formalization of the Energy and Climate Partnership, we look forward to deepening our collaboration and working more closely on our shared goals.

“The establishment of a joint H2Global funding window is a milestone in our efforts to establish a hydrogen market and demonstrate the feasibility of bilateral trade.”