A new report from global energy consultancy Xodus has underscored the potential for UK companies to enter Australia's expanding hydrogen sector, which is positioning itself as a global leader in hydrogen production. With Australia's target to become a significant player in hydrogen exports and domestic decarbonisation by 2030, the report points to a strong alignment for UK expertise in the hydrogen sector to support Australia's ambitions.
Commissioned by the UK Government, Xodus conducted an assessment of Australia's hydrogen supply chain readiness, aiming to identify areas where UK companies could bridge gaps in local capabilities. The report finds that while both nations are in the early stages of hydrogen industry development, UK companies lead in research and technology, presenting a clear opportunity for export and collaboration.
Simon Allison, vice president APAC at Xodus, highlighted the mutual benefits of cross-border cooperation. “Our Australian Hydrogen Market study reinforces the wider benefits that can be realised through joined up thinking and by sharing expertise across borders,” he said, noting Australia's rapid emergence as a global hydrogen force with active projects that place it second globally in production capacity. Xodus estimates that Australia's hydrogen market could generate annual revenue of $24 billion (£13 billion) by 2030.
The report outlines four key opportunities for UK firms in Australia: hydrogen electrolysis manufacturing, hydrogen-fueled gas turbines, hydrogen fuel cells, and hydrogen transport technology. However, Xodus also identified barriers that UK companies could face, including policy and regulatory uncertainty, particularly around renewable energy requirements, hydrogen certification, and revenue support mechanisms. Additionally, Australia's geographic isolation, challenging climate, and infrastructure limitations could complicate entry for international firms.
Mark Elliot, Xodus' commercial lead for hydrogen, emphasized the potential rewards for companies able to navigate these challenges. “Australia presents substantial opportunities for UK companies prepared to invest time in understanding the regulatory landscape and strategically positioning themselves to enter the market,” he said.
With a Red, Amber, Green (RAG) assessment highlighting specific areas of opportunity, Xodus suggests that a strategic, informed approach could enable UK companies to capture a share of Australia's burgeoning hydrogen sector.
