The Australia-Japan renewable hydrogen value chain

This report highlights key areas of interest for both countries, particularly for sectors such as chemical production (ammonia and methanol), steel manufacturing and fertiliser production. Despite strong market potential, significant investment is needed to develop large-scale production, overcome high capital costs, and build the necessary infrastructure for storage and transport. Crucially, industry growth will require closing the skills gap and establishing innovative financing models.

To capitalise on these market opportunities and address the identified challenges, experts from both Australia and Japan recommend leveraging Australia’s renewable energy resources and Japan’s technological expertise through joint research and development, technology sharing, and harmonised regulatory frameworks. Strengthened collaboration between governments, industry and research institutions is vital for creating a sustainable, integrated hydrogen supply chain and positioning the partnership as a global leader in clean energy. 

These initiatives, aligned with Japan’s Hydrogen Society Promotion Act 2024 and Australia’s revised National Hydrogen Strategy (2024), underscore a mutual commitment to positioning hydrogen as a critical enabler of a sustainable, low-carbon future.

>> View The Australia-Japan renewable hydrogen value chain report