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The hydrogen landscape

Challenges and opportunities in Australia and Asia Pacific Markets

The future of hydrogen development in Australia and the APAC region is promising. Australia has abundant renewable solar and wind resources, both able to be harnessed to produce clean hydrogen. Trading partners such as Korea and Japan will require significant amounts of hydrogen to decarbonise their economies. This positions the region to become a global leader in hydrogen production, technology and export.

Investment in hydrogen also offers substantial economic growth potential and job creation across manufacturing, engineering, and research sectors. We know that developing a hydrogen economy will potentially increase energy security and reduce dependence on fossil fuels.

This outlook also presents some challenges. The initial capital expenditure for setting up production facilities, storage solutions, and distribution networks is substantial. Likewise securing offtake agreements is extremely difficult with current pricing, meaning reaching a final investment decision is challenging. Technological barriers also loom large; advanced yet expensive technologies like electrolysers are required for efficient green hydrogen production, and existing fuel cell and storage technologies need further advancements to become cost-effective and reliable. Additionally, the regulatory environment is still evolving, with unclear policies and incentives potentially deterring investors and slowing progress.

The pursuit of a hydrogen economy in Australia and Asia Pacific markets presents both significant challenges and rewarding opportunities. Overcoming infrastructure, technological, and regulatory barriers will require coordinated efforts across all stakeholders in the value chain.

Deloitte's comprehensive suite of hydrogen solutions is designed to help clients navigate the complexities of developing and integrating hydrogen as a green energy source. From supporting with initial feasibility studies through to assisting clients execute major capital projects, Deloitte provides the expertise needed to realise the full potential of hydrogen in Australia and the APAC region.

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