Without a doubt, hydrogen will become one of the most in-demand fuel products of the future. As a result, experts have forecast significant global interest in this sector. Projections estimate a CAGR of 9.2% from 2020 to 2025. In 2020, the hydrogen market was valued at US$130 billion, but by 2025, it will have grown to US$201 billion — an increase of US$71 billion.
Specifically, in the Asia Pacific hydrogen market is currently worth US$93 billion, analysts expect a CAGR of 10%. Due to Australia’s close proximity, the country is poised to become a major player in this region and is currently developing the capabilities to provide its neighbours with high-quality hydrogen.
A global focus on climate change and a push for clean energy is the driving force behind the rise in the demand for the gas. The success of hydrogen can also be attributed to its ability to fulfil a variety of functions, including long term power storage, mobile energy generation, and the rising use of hydrogen fuel cells to power cars, trucks, ships and aircraft.
As Australia’s western trade partners work towards their net-zero targets, hydrogen will begin to dominate the global energy market. Known for being an exporter of world-class resources and being strategically located near major energy consumers such as China, India and Japan, Australia has an unprecedented opportunity to capitalise on the lucrative opportunities the market presents.
The Australian Federal Government is committed to helping the nation realise this potential and has invested AU$1.2 billion into the development of hydrogen technology, while the NSW Government has committed to AU$3 billion.
To support this, the Commonwealth Government released a National Hydrogen Strategy outlining a road for growth in both domestic and international exports.
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