The global hydrogen generation market is set to reach USD 201 billion by 2025 from an estimated USD 130 billion in 2020, at a CAGR of 9.2% during the forecast period. Market growth can be attributed to increasing fuel cell power generation application, demand for long term power storage and the need to decrease greenhouse gas emissions from hydrogen production methods.
The Asia Pacific hydrogen generation market is projected to account for USD 93,468M dollars by 2025, growing at a CAGR of 10% during the forecast period. Located at Asia's doorstep, Australia is perfectly positioned to supply the region’s rising hydrogen demand.
Hydrogen demand drivers >
FUTURE OF AUSTRALIAN INDUSTRY
Now that Australia and its major trading partners are committing to full decarbonisation by 2050, experts are predicting hydrogen will transform the energy industry and take a large portion of the market. As a significant exporter of high-quality resources, Australia has a critical role in helping nations meet the growing demand for hydrogen.
The Australian government's National Hydrogen Strategy aims to take advantage of increasing global momentum for clean hydrogen, with the sector estimated to be worth $56 billion by 2050.
- International investors like Toyota and Hyundai are working with domestic partners to develop a hydrogen refuelling network for electric vehicles. This will completely decarbonise Australia’s transportation and logistics industry.
- Hydrogen can be converted into syngas, allowing us to replace natural gas when heating homes. KPMG found hydrogen heating supplies could cost $300 billion less than the electric models.
- AECOM notes the average cost of energy for remote communities using diesel generators is $450/MWh, which can be reduced to $100/MWh through hydrogen.
- A growing market estimated to generate $10 billion in exports for Australia by 2040 as the world moves to meet carbon emission targets.
- Proven demand from major markets across the globe — Japan, China, South Korea, Italy, France, Germany, United Kingdom and South Korea.
- CSIRO estimates Japan, South Korea, Singapore and China will require 3.8 million tonnes of hydrogen by 2030 — Australia is expected to fill a substantial amount of this. Japan alone is estimated to import 10 mega tonnes a year by 2050.