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Business Envoy February 2022

Clean hydrogen collaboration with Japan

Australia and Japan are building on a long-term and trusted energy partnership in clean energy. A new initiative and a world-first shipment of liquid hydrogen will help develop Australia's export hydrogen industry and provide opportunities for Australian businesses working on hydrogen supply chain projects.

At the Leaders' Meeting on 6 January, Prime Minister Kishida welcomed Prime Minister Morrison's announcement to establish the $150 million Australian Clean Hydrogen Trade Program.

The first round of the program, which will support Australian-based hydrogen supply chain projects that secure overseas investment, will focus on the export of clean hydrogen to Japan under the Japan-Australia Partnership on Decarbonisation through Technology.

The program will help accelerate the development of an Australian hydrogen export industry to become a supplier of choice for Japan and the region.

Clean hydrogen imports are a key pillar in Japan's plan to achieve carbon neutrality by 2050, and the country is heavily investing in international supply chains including through its ¥2 trillion ($24.5 billion) Green Innovation Fund.

The Clean Hydrogen Trade Program will complement growing Japanese government support for private investment in Australia's green hydrogen sector.

Energy and resources lie at the heart of the Japan-Australia commercial partnership. Australia is Japan's largest supplier of LNG, coal and iron ore. The two countries are working together to support initiatives that will advance low emissions technologies and achieve net zero by 2050.

Japan is an economic heavyweight. The Australia-Japan partnership is Australia's closest and most mature in Asia, underpinned by deep and longstanding trade and investment ties. In 2020, Japan was Australia's second largest export market and largest source of new foreign direct investment.

Prime Ministers Morrison and Kishida reaffirmed their commitment to the full implementation of the Japan-Australia Economic Partnership Agreement, which came into force in 2015. They also highlighted Japan's role as a priority partner in developing resilient critical minerals supply chains.

Clean hydrogen is central to both Australia's and Japan's plans to achieve net zero emissions while growing our economies and jobs.

Scott Morrison, Prime Minister of Australia


 Arrival of the world’s first liquid hydrogen transportation ship, the ‘Suiso Frontier’ from Japan, picking up the first shipment of hydrogen in Australia in January 2022
Arrival of the world's first liquid hydrogen transportation ship, the ‘Suiso Frontier' from Japan, picking up the first shipment of hydrogen in Australia in January 2022. Image courtesy of HySTRA.
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