Australia could build a $3 billion industry making hydrogen electrolysers
Australia’s national science agency, CSIRO, says Australia could create an industry making green hydrogen electrolysers worth around $2.9 billion.
CSIRO’s latest report comes amid a reassessment of the green hydrogen promise, and a market route one German CEO predicts will see a dramatic reduction in the number of companies in the space.
In Australia, however, CSIRO is much more optimistic, and says there are big opportunities from the local companies looking to establish their own electrolyser technologies.
It says that if the country can rally strong support for local procurement, revenue just from electrolysers made in Australia could touch $1.7 billion, and an assembly and installation sector could be worth another $1.1 billion, both by 2050.
And despite the struggles being faced by electrolyser makers internationally, it says the window has not closed.
The massive proposed demand for green hydrogen at home, to decarbonise industries such as steel and transport, and an electrolyser industry in its infancy mean Australia could develop its own electrolyser supply chain from scratch.
But this must play out against a ruthlessly competitive global backdrop.
In March, BNEF head of hydrogen research Martin Tengler did not go so far to call a bubble, but highlighted the massive overcapacity problem that is just getting larger.
That overcapacity is unlikely to abate soon, as China and India go toe to toe with investments in the space, as they attempt to dominate the new industry.