Generic Hero BannerGeneric Hero Banner
Latest market news

Australia, India to set up green hydrogen task force

  • : Hydrogen
  • 23/05/24

India and Australia today agreed to set up an Australia-India Green Hydrogen Task Force to jointly develop green hydrogen resources.

The Indian and Australian governments finalised the terms of reference of the task force, which will advise the two governments on accelerating manufacture and deployment of clean hydrogen, with a focus on hydrogen electrolysers, fuel cells and creating infrastructure and regulations that support these aims, a press release from Indian prime minister Narendra Modi's office said.

"The task force will comprise Australian and Indian experts in renewable hydrogen and report to the Australian-Indian Ministerial Energy Dialogue on the opportunities which are there for Australia and India to cooperate in this important area of renewable hydrogen," Australian prime minister Anthony Albanese said.

The announcement of the task force follows discussions between Modi and senior officials of Australian companies on investment opportunities for the two countries, which form half of the four-member Quad security dialogue and have forged closer relations in recent years. The Indian prime minister's office said on 23 May that Modi met Australian mining magnate Andrew Forrest to discuss Fortescue's work with Indian companies on green hydrogen. The office said Modi discussed India's ambitious renewable energy strategy including Delhi's green hydrogen mission, while Forrest briefed the Indian prime minister on Fortescue Future Industries' (FFI) plans and projects in India.

India is Australia's sixth largest trading partner with trade in goods and services valued at A$46.5bn ($30.7bn) in 2022, with coal shipments from Australia comprising a major chunk. India imported 45.53mn t of Australian coking coal last year, down from 2021's 54.25mn t but remaining the top destination for the commodity, a position it has held for a decade ahead of Japan. But Australia supplied zero volumes of iron ore to India in 2022, according to data from the Australian Bureau of Statistics (ABS), as it struggles to diversify its markets despite a desire by major exporters to access its burgeoning steel market. Australia's thermal coal exports to India in 2022 dived by 48pc from 2021 to 9.48mn t because of record high prices.

Albanese has set his 12-month old government on a path to developing renewable energy sources, to eventually replace the nation's major exports of LNG and coal through a more ambitious 2030 greenhouse gas (GHG) emissions reduction goal than his predecessor.

But Australia is reviewing its support for hydrogen as it grapples with generous tax breaks and subsidies being offered worldwide, with the federal government concerned it is losing its edge despite a pipeline of projects representing 40pc of proposed green hydrogen developments. A recently announced funding scheme for hydrogen aims to subsidise two or three projects totalling 1GW of electrolyser capacity by 2030.

India announced a National Green Hydrogen Mission in January targeting 5mn t/yr of domestic green hydrogen production by 2030, with the potential to reach 10mn t/yr with the growth of export markets. India's cabinet approved an initial outlay of 197.44 billion rupees ($2.39bn) for the mission, with much of the funding used to incentivise domestic hydrogen production and electrolyser manufacturing. India plans to grow its installed renewables capacity to 500GW by 2030 from 125GW currently to help meet the government's target of reaching net-zero emissions by 2070.


Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

25/01/31

ExxonMobil sees 45V as 'critical' for H2 market: Update

ExxonMobil sees 45V as 'critical' for H2 market: Update

Adds details from the earnings call Houston, 31 January (Argus) — ExxonMobil chief executive officer Darren Woods said hydrogen production tax credit 45V, a key component of former President Joe Biden's efforts to curb emissions, is critical to establishing a market for the zero-emissions fuel that can stand on its own. Pointing to the company's Baytown Low-Carbon Hydrogen project in Texas as an example, Woods noted the project depends on 45V to be economically viable. "We believe these incentives are critical to establishing a fully market-based future where hydrogen competes head-to-head with traditional fuels," Woods said in a call following the company's release of fourth-quarter earnings. "The end goal is clear: a system where no energy source remains dependent on government subsidies." Woods' comments come as President Donald Trump has ordered a review of the previous administration's clean energy polices, reversing a moratorium on new LNG export facilities and pausing funding related to Biden's signature climate bill, 2022's Inflation Reduction Act, which established 45V as an incentive to kickstart US hydrogen production. Woods noted that roughly 10pc of the company's capital expenditure is earmarked for "nascent, lower-emissions markets, where market forces have yet to fully take hold." ExxonMobil expects its low-carbon business, which includes hydrogen, lithium and carbon capture and storage, to provide $2bn in earnings growth between now and 2030, chief financial officer Kathryn Mikells said on the earnings call. ExxonMobil is developing what it describes as the largest low-carbon hydrogen plant in the world in Baytown, designed to produce 1bn cf/d of hydrogen from natural gas with carbon capture. If completed as designed, the project would represent nearly 10pc of the Biden administration's goal as laid out in the US National Clean Hydrogen Strategy and Roadmap, the company says on its website. Most of the plant's production would be used to decarbonize its refinery operations at Baytown but the company recently signed an agreement to sell ammonia from the plant to European trading firm Trammo. Japanese power producer Jera has said it is considering 500,000 t/yr of ammonia offtake from the plant as part of its plans to take an equity stake in the project. Earlier in January, ExxonMobil announced a technical breakthrough that would enable it to crack hydrocarbon molecules into olefins for plastics using furnaces that operate entirely on hydrogen fuel. The company said it is the first company to demonstrate this technology at industrial scale and is a part of "getting hydrogen-ready." The company is expected to make a final investment decision on the hydrogen plant later this year. By Jasmina Kelemen Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Proven tech focus of 2024 transition investment: BNEF


25/01/30
25/01/30

Proven tech focus of 2024 transition investment: BNEF

London, 30 January (Argus) — Global energy transition investment rose to record levels in 2024, Bloomberg New Energy Finance (BNEF) says in a report published today, but growth was centred on proven technologies and the amount put into emerging sectors declined. Overall investment in the energy transition reached almost $2.1 trillion last year, BNEF says, an increase of 11pc from 2023 and the highest ever. But the increase was markedly smaller than the 24-29pc annual growth recorded over the previous three years. And investment needs to rise to $5.6 trillion/yr in 2025-30, and $7.6 trillion/yr in 2031-35, to align with achieving net zero emissions by mid-century, BNEF says. About 93pc of energy transition investment last year related to "proven, commercially scalable" technologies, BNEF says, resisting pressure from higher interest rates and policy decisions to rise by 14.7pc to $1.93 trillion. Of these, electrified transport attracted the most investment at $757bn, up by 20pc on the year, followed by renewable energy, up by 8pc to $728bn, and power grids, up by 15pc to $390bn. But investment in emerging technologies fell by 23pc on the year to $154bn. Carbon capture and storage investment halved to $6.1bn, as did clean industry investment to $27.8bn. And hydrogen investment declined by 42pc to $8.4bn. BNEF points to issues surrounding technology maturity, scalability and affordability as key hindrances in emerging sectors, flagging the need for public-private partnerships to derisk investment and encourage growth. The main regional sources of investment shifted in 2024, as mainland China increased its contribution by 20pc to $818bn, investing more than the principal 2023 growth drivers — the EU, US and UK — combined. EU investment fell to $381bn and the UK's to $65.3bn, while the US' held stable at $338bn. By Victoria Hatherick Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Spain to give €400mn to EU Hydrogen Bank auction losers


25/01/30
25/01/30

Spain to give €400mn to EU Hydrogen Bank auction losers

Madrid, 30 January (Argus) — Spain plans to distribute €400mn ($417mn) among renewable hydrogen projects that met the criteria to compete in the EU's pilot Hydrogen Bank auction in 2024 but whose bids were too high to be selected for subsidies. The funding will add to €1.32bn to be allocated "in the next few weeks" to large-scale hydrogen clusters as part of Spain's Perte Hydrogen Valley scheme, according to prime minister Pedro Sanchez. Spain submitted 46 projects with a combined 2.9GW of electrolysis capacity to the Hydrogen Bank auctions in April 2024. Three of the seven projects selected from the 119 eligible bids lodged by EU countries were Spanish, although developer Benbros Energy eventually decided not to claim its operating subsidies of €0.38/kg of renewable hydrogen produced. The support announced by Sanchez for eligible projects that missed out on the operating subsidies was at the top end of the €280mn-400mn range proposed by Spain after the auction. The €1.32bn for hydrogen valley Perte is higher than the €1.2bn originally announced. Sanchez defended Spain's focus on renewables and low-carbon energy vectors such as green hydrogen, which he cited as a driver for the country's 3.5pc year-on-year fourth quarter GDP growth, as reported this week by national statistics institute INE. "We are going to continue on this path, we are going to reinforce our policy of 'green, baby, green'," Sanchez said, an allusion to US President Donald Trump's "drill, baby, drill" promise to unleash the full potential of the US oil and gas industry. By Jonathan Gleave Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

ECA's green export finance bypasses developing nations


25/01/29
25/01/29

ECA's green export finance bypasses developing nations

Berlin, 29 January (Argus) — The "greening" of export credit agency's (ECA) finance which occurred in the past decade has largely bypassed developing countries, with investments mainly flowing to higher-income countries, according to a study on ECA transactions. The study, carried out by researchers from the business schools HEC Lausanne, ETH Zurich and HEC Paris, shows that ECA energy finance going to lower-income countries dropped to below 30pc in 2022-23 from 47pc in 2013-15. ECAs, including export-import banks, are state-backed agencies that help national exporters finance deals abroad by providing guarantees or loans. The share of ECA renewables commitments — mostly offshore wind and, increasingly, green hydrogen — rose to around 40pc in 2022–23, from under 10pc in 2013. The complete phase-out of fossil fuel financing appears "distant", the researchers noted. While ECAs handle financing volumes "on a par with multilateral development banks such as the World Bank", the scope and direction of their energy investments have largely remained "opaque", the researchers said. The study is based on an analysis of almost 1,000 transactions between 2013-23 which financed energy-related infrastructure and were supported by ECAs. For some key ECA countries such as China or Canada, data is only partially available. The study also reveals "notable" disparities between countries. Most members of the Export Finance for Future coalition (E3F), a group of European countries committed to aligning their export finance with the Paris climate agreement, have introduced stricter fossil fuel exclusions and are boosting their renewable portfolios. At the same time, major players like South Korea, Japan, and China have maintained significant levels of oil and gas lending. OECD countries should introduce "more rigorous climate policies" and renew international cooperation, the researchers said, particularly with non-OECD countries such as China. The OECD — where ECA terms and conditions are negotiated — could relaunch the International Working Group on ECAs, they said, to help ensure that countries phasing out support for fossil fuels do not see their market shares grabbed by others. Better renewable investment support via ECAs could help scale up the new collective quantified goal (NCQG) on climate finance, set at a minimum of $300bn annually by 2035 at the last UN Cop 29 climate summit in November, the researchers said. And ECA mandates could also be broadened to accommodate the needs of lower-income regions. "It is high time for ECAs to complete the shift to renewable energy, and through carefully designed policies and international cooperation, become true catalysts for a rapid and just energy transition," lead author Philipp Censkowsky from HEC Lausanne said. By Chloe Jardine Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Norwegian 20MW green H2 project reaches FID


25/01/28
25/01/28

Norwegian 20MW green H2 project reaches FID

Mumbai, 28 January (Argus) — Norwegian project developer GreenH and German asset manager Luxcara have taken a final investment decision (FID) on a 20MW renewable hydrogen project in Norway's Bodo municipality. The plant is slated to produce up to 3,100 t/yr of renewable hydrogen from 2026. The supply will be delivered to ferry operator Torghatten Nord, making the plant the first to deliver pressurised renewable hydrogen directly to a maritime vessel, according to GreenH. GreenH2 and Torghatten Nord in August 2023 struck an agreement for renewable hydrogen supply in 2025-40. Torghatten Nord will use the hydrogen on two ferries which are scheduled to start operations in October 2025. The company also plans to sell oxygen and waste heat from the facility to generate additional revenue. GreenH secured a 1bn Norwegian kroner ($89mn) financing package for the plant "through private placements, loan schemes and a share purchase" over the past few years. The funding includes NOK129mn from Norwegian government body Enova which was confirmed last month. This is part of a larger NOK391mn award from the body for three projects planned by GreenH. Luxcara is also involved in the 100MW Hamburg Green Hydrogen Hub in Germany which is due to start construction this year with a view to starting production in 2027. By Stefan Krumpelmann Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Generic Hero Banner

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more