The opportunity in Australia’s multi-billion-dollar green hydrogen market

• Global hydrogen market already worth more than US$200 billion a year, with most demand in heavy industry
• Australia’s domestic hydrogen market sits at 500,000 tonnes annually, valued at around $5 billion
• Innovators are advancing tech to cut electricity use, removing one of the key barriers for green hydrogen to replace fossil fuel alternatives

Special Report: Green hydrogen may have lost its gloss this year, but it still has plenty of growth opportunities as global capital and governments chase net zero.

Green hydrogen plays have dropped off investors’ ‘what’s hot’ lists this year, but the global demand for hydrogen still holds tonne-loads of potential. A market worth more than US$200 billion exists in heavy but hard to abate industries – and Australian innovators are finding new ways to make the numbers work.

Under the radar of many investors is an existing hydrogen market worth at least US$200 (A$306) billion globally. Most of the demand for the ~100 million tonnes consumed annually comes from essential but infamously hard to abate industries.

Australia has a 500,000-tonne-a-year hydrogen market – worth up to approximately $5 billion – which fuels the key sectors of steelmaking, fertiliser and chemical production, and refining.

While a lot of people think of all hydrogen as clean and green, the vast majority used by industry is grey or black – produced from gas or coal – and those varieties release millions of tonnes of CO₂ into the atmosphere each year.

Replacing fossil-fuel hydrogen with zero-emissions green hydrogen – produced using wind or solar power – could deliver some of the most immediate and bankable emissions cuts for corporations and governments scrambling to reach emissions targets.

Bankable market

For investors, the real hydrogen play is not just about futuristic cars or headline-grabbing export projects, it’s the massive and stable market for clean industrial feedstock.

More than 60 governments worldwide have adopted hydrogen strategies, and the focus, especially in Europe and Asia, is on low-emissions hydrogen. Billions of euros, yen and Korean won are being invested in R&D, subsidy programs and demonstration plants.

The climate solution green hydrogen offers may be clear, but its cost has been a major challenge. That’s because producing green hydrogen via the standard electrolysis method still requires substantial amounts of clean electricity.

The International Energy Agency (IEA) notes that low-emissions hydrogen currently plays only a marginal role, with production of less than 1 million tonnes per annum – or one per cent of the global market. But, unlocking more cost-effective green hydrogen would lead to an exponential increase in its use.

Australian innovation can shift balance

Eyeing the huge opportunities for game-changing technology, Australian innovators are advancing projects across key sectors including alumina refining and steel production; shipping, aviation and other fuels; and fertiliser production via green ammonia.

Made by combining green hydrogen with nitrogen, green ammonia offers an immediate and high-impact opportunity to decarbonise the fertiliser industry. Additionally, green ammonia can be used as a zero-carbon fuel in the shipping industry – with potential uses as an export fuel.

The green ammonia market is projected to grow from US$407 million in 2024 to US$44,299 million by 2032, an eye-popping compound average growth rate of almost 80 per cent. Australia’s neighbours and close trading partners in Asia and the Pacific dominate the global market with a share of almost 66 per cent, according to Fortune Business Insights.

Green hydrogen projects in Australia are targeting our key sectors including fertiliser production for agriculture, plus steel and fuel.

One company that’s a frontrunner in cracking this industrial-scale market is Hadean Energy, a start-up spun out of CSIRO research. Its tubular Solid Oxide Electrolyser (tSOE) technology uses up to 30 per cent less electricity than conventional proton exchange membrane (PEM) electrolysers.

This efficiency edge, combined with the use of industrial waste heat and avoidance of rare and expensive metals, means Hadean’s system can produce hydrogen – and syngas for e-fuels – at significantly lower costs than incumbent green hydrogen technologies.

Additionally, amid the well-publicised gas price rises, grey hydrogen is becoming more expensive, shifting the viability dial towards the green alternative.

Adding to the benefits of its transformative tech, Hadean’s modular units can be made ready for easy integration at industrial sites.

The company has already successfully completed a 1,000-hour industrial trial at BlueScope Steel’s Port Kembla plant, demonstrating it can take the heat of real-world applications.

It’s also earned a spot as a Shell-backed New Energy Challenge 2025 finalist, which puts it on the radar of major energy players.

Another boost for Hadean is its support from advisory firm RFC Ambrian, which has previously helped guide Chrysos (ASX:C79) and FPR Energy from R&D projects to commercialisation.

Looking to leverage overseas interest, Hadean is collaborating with startup NGV Earth on a pilot-scale plant advancing technology to deliver sustainable aviation fuel that doesn’t have the environmental baggage of what’s used today.

Further positioning Hadean’s technology for domestic and international impact, the company will soon deploy a multi-kilowatt demonstration unit as part of the Australia-UK Renewable Hydrogen Innovation Partnerships program.

This program, with high-level government support in both countries, is sharply focused on the decarbonisation of hard-to-abate industries.

It’s these existing high-emissions yet essential for modern life industries – not the cool cars and shiny new projects – that will propel us towards a decarbonised future.

By growing in these proven and large-scale markets the green hydrogen sector can set itself up for broader adoption and unlock the capital set to flow into one of the energy transition’s key growth opportunities.

This article was developed in collaboration with Hadean Energy, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.