The Australian hydrogen industry could be worth an estimated A$40-billion and could create as many as 72 000 jobs a year by 2040, a new report by National Energy Resources Australia (NERA) shows.

The report, ‘Powering Up: Seizing Australia’s Hydrogen Opportunity by 2040’, reveals that the hydrogen industry is capable of generating nearly 1% of national gross value added (GVA) and supporting 58 000 to 72 000 jobs by 2040, most of which will be created in regional areas.

By 2040, Australian hydrogen demand could soar to 9.5-million tonnes, almost ten times the current global production, with 46% designated for export markets. To meet this demand, massive infrastructure development will be needed, including a fivefold increase in Australia’s solar and wind capacity, thousands of electrolysers and compressors, and over 5 000 hydrogen storage tanks. The required infrastructure investment is estimated at A$340-billion to A$420-billion, with a yearly investment of A$25-billion to A$30-billion between 2025 and 2040.

The report is the first comprehensive analysis of Australia’s hydrogen supply chain and the hydrogen equipment, technology and services (HETS) opportunity from a national perspective, outlining crucial actions needed to support Australia’s future hydrogen economy.

The study builds on modelling developed by advisory firm Arup for the yet-to-be-released National Hydrogen Infrastructure Assessment to consider one possible configuration of the hydrogen supply chain in 2040.

NERA CEO Miranda Taylor said realising the full potential that hydrogen presented for Australia required significant investment to foster local capabilities, job creation and decarbonisation efforts, particularly in regional areas.

“The hydrogen supply chain could drive Australia’s future economic growth and position the country to become a global leader in hydrogen,” she said.