Australia Hydrogen Generation Market Overview, 2030

Australia’s hydrogen generation market has evolved significantly over recent years, becoming a critical element of the country’s energy transition strategy. Central to this shift is the National Hydrogen Strategy, introduced by the Australian government to drive innovation and development in the hydrogen sector. This strategy aims to position Australia as a global leader in hydrogen production, export, and utilization. Recognizing the transformative potential of hydrogen as a clean energy source, the strategy outlines an ambitious roadmap that includes creating a thriving domestic market and securing international markets, particularly in Asia. Australia’s vast renewable energy resources, including solar and wind power, offer a significant advantage in hydrogen production, with green hydrogen becoming a focal point in the country’s energy transition. The National Hydrogen Strategy also emphasizes Australia’s geographical advantages, with its proximity to high-demand markets in Asia, which enhances its export potential. This strategic approach aligns with the global trend toward decarbonizing energy systems and industrial sectors, positioning Australia to contribute meaningfully to the worldwide hydrogen economy. The government’s commitment is evident through substantial investments in hydrogen infrastructure, including funding for research and development projects that aim to improve hydrogen production efficiency and reduce costs. The Australian Renewable Energy Agency (ARENA), for example, has allocated over USD 500 million to the development of hydrogen hubs across regional Australia. These initiatives create the foundation for a robust hydrogen industry in the country and ensure its competitiveness in the global market, making hydrogen a key pillar of Australia’s sustainable energy future.

According to the research report, "Australia hydrogen generation Market Overview, 2030," published by Bonafide Research, the Australia hydrogen generation market is expected to reach a market size of more than USD 1.63 Billion by 2030. Several factors are contributing to this positive outlook, including the nation’s abundant renewable energy resources, such as wind and solar power, which are vital for the production of green hydrogen. Green hydrogen, produced through the electrolysis of water using renewable electricity, is expected to be the cornerstone of Australia's hydrogen industry. With the global push for carbon-neutral energy solutions, Australia’s renewable energy resources place the country in an advantageous position to scale up its green hydrogen production. Furthermore, Australia’s strategic geographic location enhances its potential as a hydrogen exporter, particularly to key markets in Asia, where demand for clean energy solutions is rapidly increasing. Key importers, such as Japan, South Korea, and China, have made significant strides in their hydrogen development programs, creating an opportunity for Australia to export hydrogen on a large scale. The Australian government has reinforced its commitment to this sector by setting ambitious goals, including the target to produce at least 15 million tonnes of hydrogen annually by 2050. This goal demonstrates the country’s dedication to meeting both domestic and international hydrogen demands. Supportive government policies, such as funding for hydrogen hubs and investments in infrastructure development, further contribute to the growth of the hydrogen sector. With these initiatives in place, Australia is poised to strengthen its position as a global leader in hydrogen production and export, meeting the growing demand for sustainable energy solutions worldwide.

In the Australian hydrogen market, hydrogen types are divided primarily into pure hydrogen (H?) and hydrogen mixtures. Pure hydrogen is primarily used in high-purity applications where its characteristics as a clean fuel and chemical feedstock are critical. Industries such as ammonia production, petroleum refining, and transportation rely heavily on pure hydrogen due to its high energy content and versatility. Ammonia production, which is a key part of the agricultural sector, especially in fertilizer manufacturing, is a major consumer of hydrogen. Pure hydrogen’s role in refining and transportation is also growing, with its potential to replace fossil fuels in vehicles and transportation systems. On the other hand, hydrogen mixtures, which typically consist of hydrogen mixed with other gases, are often used in power generation and various industrial processes. These mixtures are more cost-effective and versatile, as they can be applied across a broader range of industrial operations. The increasing demand for both pure hydrogen and hydrogen mixtures is reflective of the expanding applications of hydrogen across various sectors. With Australia’s focus on green hydrogen, the nation is investing heavily in the production of hydrogen using renewable energy sources to meet growing demand. The transition to green hydrogen will be key in reducing emissions across sectors and supporting Australia’s commitment to achieving net-zero emissions by 2050. Furthermore, hydrogen’s role as a clean alternative to natural gas in industrial applications is expected to drive increased demand in the coming years. The Australian government's target of producing 15 million tonnes of hydrogen annually by 2050 reflects this growing demand and the increasing importance of hydrogen in the country’s energy future.

Australia’s hydrogen production technologies are primarily based on steam methane reforming (SMR) and coal gasification, though there is a significant focus on advancing green hydrogen production through electrolysis. SMR is currently the most common technology used in hydrogen production, particularly in regions with abundant natural gas resources. This process extracts hydrogen from natural gas, but it is associated with carbon emissions, which has led to growing concerns about its sustainability. Despite its cost-effectiveness, SMR is increasingly seen as a transitional technology as the world moves toward greener energy solutions. Coal gasification, while a less common method, is used in certain regions where coal reserves are plentiful. This method involves reacting coal with oxygen and steam to produce hydrogen. However, coal gasification also has a significant environmental impact due to its carbon emissions. As a result, there has been a shift toward more sustainable methods, with a strong emphasis on electrolysis as a cleaner alternative. Electrolysis, which splits water into hydrogen and oxygen using electricity, is a key focus for the Australian hydrogen industry. When powered by renewable energy sources, electrolysis produces green hydrogen, which is seen as a critical solution for decarbonizing sectors such as transportation, industrial production, and power generation. The Australian government’s incentives and investments in electrolysis technology are helping to reduce costs and improve the scalability of green hydrogen production. As Australia continues to scale up its green hydrogen production, electrolysis is expected to play a central role in meeting the country’s hydrogen targets and supporting its transition to a low-carbon economy.

Australia’s hydrogen generation market is further segmented by system type and energy source. The market features both captive systems, where hydrogen is produced on-site for specific applications, and merchant systems, where hydrogen is produced for sale to multiple customers. Captive systems are typically found in industries such as ammonia production, petroleum refining, and steel manufacturing, where hydrogen is needed in large quantities for specific processes. Merchant systems, on the other hand, produce hydrogen for sale to a broader market, including industries such as power generation and transportation. The flexibility of merchant systems makes them well-suited to meet the growing demand for hydrogen across various sectors, especially as the Australian government’s hydrogen targets are pursued. Energy sources for hydrogen production in Australia currently include natural gas, coal, and renewable energy. Natural gas is the dominant energy source for hydrogen production due to its abundance and well-established infrastructure. However, there is a significant shift towards renewable energy sources such as solar and wind, which are seen as critical for producing green hydrogen. The transition to renewable energy-based hydrogen production is driven by both environmental considerations and government incentives aimed at reducing carbon emissions. As renewable energy infrastructure continues to expand in Australia, it is expected that renewable hydrogen will become increasingly cost-competitive, providing a cleaner alternative to hydrogen produced from fossil fuels. The government’s support for renewable hydrogen technologies, combined with ongoing investments in energy infrastructure, will play a pivotal role in shaping the future of Australia’s hydrogen generation market. Australia’s hydrogen generation market is positioned for significant growth, supported by a favorable policy environment, abundant natural resources, and a commitment to transitioning to green hydrogen. The National Hydrogen Strategy provides a clear roadmap for the development of the sector, outlining both domestic and export goals for hydrogen production. The country’s vast renewable energy resources, particularly wind and solar power, place it in a strong position to produce green hydrogen at scale. The government’s goal of producing at least 15 million tonnes of hydrogen annually by 2050 is a testament to Australia’s commitment to becoming a global leader in hydrogen production and export. While challenges remain, particularly in reducing production costs and scaling up infrastructure, the supportive policy framework, coupled with substantial investments in hydrogen technology, provide a solid foundation for Australia’s future as a major player in the global hydrogen market. The country’s strategic location and its dedication to sustainability further enhance its prospects in the hydrogen generation sector, making it an essential part of the global energy transition.



Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report
• Hydrogen Generation Market with its value and forecast along with its segments
• Region & country wise Hydrogen Generation market analysis
• Application wise Hydrogen Generation distribution
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Applications
• Methanol Production
• Ammonia Production
• Petroleum Refinery
• Transportation
• Power Generation
• Others (Steel+Iron+commercial uses+semiconductors, LEDs, displays, photovoltaic segments, and other electronics etc)

By Technology
• SMR =steam methane reforming
• Coal gasification
• Others (Electrolysis, oil/refining or auto-thermal reformation )

By Energy Source
• N.GAS
• COAL
• Others (oil, Renewable Energy, etc.)

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to chemical industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.