Is Hydrogen Sector Offering a Huge Export Opportunity?

Team Veye | 26-Mar-2024

Hydrogen has been recognised as an important player in energy transition because of its use in transport, energy storage and electricity generation.

Australia seized the opportunity when it became the first country in the world to export hydrogen with its first shipment of liquefied hydrogen to Japan. It achieved a major milestone in the A$500 million Hydrogen Energy Supply Chain (HESC) pilot project, which is the first in the world to extract, liquefy and transport liquid hydrogen by sea to an international market.

Australian Government, in its bid to ensure positioning of Australia as a Global Hydrogen Leader by 2030, on both, export basis and for the decarbonisation of Australian industries agreed to review its 2019 National Hydrogen Strategy.

Australia is poised to become the second largest net-exporter of low-emissions hydrogen by 2030 and the largest by 2050, as per the International Energy Agency’s 2022 World Energy Outlook.

Australia commands a dominant position, along with Europe, in hydrogen production projects using water electrolysis. Australia has some natural advantages. Its plenty of sunshine and wind provide make it almost a perfect location to generate hydrogen using clean energy.

Australian Government has offered direct support of more than A$1.3 billion, to accelerate hydrogen industry development. Government is also providing World-leading hydrogen and energy regulation including industry-leading certification and interoperability

The sector is offering excellent opportunities to investors in export projects using hydrogen technology. Such projects, need not be restrictive, and could extend to green metal manufacturing and future transport solutions. 

The government is taking initiatives in building a ready international market to export hydrogen. The headway got a boost as Australia developed international partnerships to advance technologies and explore the development of international hydrogen supply chains around the world. Being geographically close to key emerging hydrogen import markets in Asia adding to its already privileged position.

The important ASX Hydrogen Stocks are:

Hazer Group Limited (ASX: HZR)

The Hazer Group is commercialising the Hazer process. It achieved a significant milestone with the initiation of its Commercial Demonstration Plant (CDP) and the successful production of hydrogen and graphite. The company introduced feed gas to the reactor under Hazer process conditions, leading to the achievement of the first hydrogen and Hazer-produced graphite at the facility.

Frontier Energy Limited (ASX: FHE)

Frontier Energy Limited, an Australian Renewable Energy Company, is focused on developing an integrated solar and hydrogen production facility known as the Bristol Springs Renewable Energy Project near Perth. Additionally, Frontier Energy owns Waroona Energy Pty Ltd, engaged in a renewable energy project located south of Perth in Western Australia. 

The recent acquisition of WHE has strategically positioned the company to collaborate with a highly complementary and synergistic business, which is conveniently located in close proximity to Frontier’s existing infrastructure. 


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