A new report from Australia’s national science agency, CSIRO, reveals a promising future for the country’s hydrogen electrolyser manufacturing (HEM) sector.
The study projects that by 2050, the industry could generate $1.7 billion in revenue and create nearly 4,000 jobs.
The Hydrogen Electrolyser Manufacturing report highlights Australia’s potential to become a key player in the global transition to renewable hydrogen production.
The country’s strong starting position is bolstered by an emerging cohort of Australian electrolyser manufacturers who are translating innovations from the research sector into practical applications.
Vivek Srinivasan, CSIRO Futures Energy Lead, highlighted the urgency of seizing this opportunity.
“Building an electrolyser manufacturing sector isn’t just about meeting immediate demand; it’s an opportunity to develop an industry that adds long-term value to our economy and strengthens our energy security through building sovereign manufacturing capability,” he stated.
The report recommends a coordinated approach across research, industry, and government to fully realise the potential of Australia’s HEM sector.
Key strategies include aggregating demand by aligning with adjacent clean energy manufacturing opportunities, exploring international partnerships while preserving domestic value creation, and identifying strategic manufacturing hubs that leverage Australia’s renewable electricity advantages.
In addition to electrolyser manufacturing, the report identifies significant growth potential in installation services, projecting an additional $1.2 billion in revenue and 1,000 jobs by 2050.
Dr Patrick Hartley, Leader of CSIRO’s Hydrogen Industry Mission, highlights the time-sensitive nature of this opportunity.
“Australia has a significant pipeline of renewable hydrogen projects, with specific electrolyser procurement and maintenance needs,” he explained.
“If we can use our natural and technical advantages to develop a geographically aligned supply chain, Australia could reap the economic and environmental benefits of owning a significant portion of the electrolyser market.”
The report underscores Australia’s advantages in critical minerals and existing manufacturing capabilities in aerospace, defence, and medical technology sectors, which align well with electrolyser assembly and component manufacturing.
However, it also notes the current low alignment with cell fabrication and stack assembly at an industrial scale, highlighting areas for potential growth and improvement.
As the global demand for renewable hydrogen continues to rise, Australia stands at a crucial juncture.
By leveraging its renewable energy resources, research capabilities, and emerging manufacturing sector, the country has the potential to establish itself as a leader in the rapidly expanding hydrogen electrolyser market.