Australia's Energy Commodity Resources 2026 Hydrogen
Page last updated:10 August 2026
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TDR 8 PJ1 (-) | |
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Clean hydrogen production capacity2 1180 t/yr (69%) (operational) |
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Major Projects 76 announced (16%) - 17 operating - 11 under construction - 48 in feasibility and under development |
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Production Currently in the pilot and small demonstration phase, with larger demonstration scale projects under construction. |
Notes
Statistics as of December 2025; 1natural hydrogen resources; 2from electrolysis, biomass and fossil fuel conversion with carbon capture and storage; TDR = total demonstrated resources (reserves and contingent resources); t/yr = tonnes per year. Percentage increases or decreases are in relation to 2024, – = no change.
Figure 7.1 Locations and status of hydrogen projects and proposed hydrogen hubs in Australia as of December 2025. Also shown are areas of high suitability for hybrid wind and solar hydrogen production in Australia, which were identified using the Hydrogen Economic Fairways Tool.
Highlights
- Clean hydrogen in Australia is moving from pilot and small demonstration-scale projects to the construction of larger demonstration-scale projects.
- Renewable hydrogen production capacity in Australia increased by 69% over the year, reaching 1,180 t in 2025.
- The number of announced hydrogen projects under consideration in Australia decreased from 90 in 2024 to 76 in 2025, reflecting increased costs and a more mature understanding of hydrogen’s role in the energy transition.
Australian and International hydrogen targets
Australia’s hydrogen sector continues to make progress. The 2024 National Hydrogen Strategy (DCCEEW, 2024) outlines targets and 34 strategic actions, including developing and deploying national legislation (e.g. Hydrogen Production Tax Incentive, Future Made in Australia and Guarantee of Origin certification scheme), program funding (e.g. Hydrogen Headstart and Future Made in Australia Innovation Fund and First Nations Renewable Hydrogen Engagement Fund) and a variety of other mechanisms. As of December 2025, there were 76 hydrogen projects in Australia, representing around $160-$200 billion of potential investment (CSIRO, 2025a).
Australia is widely regarded as having strong global hydrogen export potential, but it is currently transitioning from planning to execution. Australia's strength lies in low-cost renewable resources, land availability and export partnerships. However, Australia faces similar challenges to other export-focused nations in terms of slow industry growth and demand, with low technology readiness and limited offtake arrangements. Success will depend on converting the large pipeline of projects—15% of announced global electrolyser capacity (IEA, 2025)—into operating commercial projects.
Box 7.1 Methods for producing clean hydrogen
There are two primary methods currently available for producing clean hydrogen:
- using renewable energy sources such as solar and wind power to split hydrogen from water using a process known as electrolysis; and,
- through a thermochemical reaction using water and fossil fuel feedstocks such as coal (coal gasification) or natural gas (steam methane reforming), with the CO2 emissions created as a by-product captured and stored in deep subsurface geological formations.
Global hydrogen demand rose to nearly 100 Mt in 2024, mainly driven by increased use in oil refineries and industry (IEA, 2025). Hydrogen production continues to be dominated by fossil fuels without carbon capture and storage, however low-emissions hydrogen production grew by 10% in 2024. Despite this increase, it still makes up less than 1% of global production (IEA, 2025). Although expectations on low-emissions hydrogen deployment have declined—due to high costs, uncertain demand and regulatory challenges—a large number of hydrogen production projects have received a Final Investment Decision since 2020 (IEA, 2025). Furthermore, there are signs of technology advancement across the hydrogen value chain, including validation of hydrogen storage in salt caverns with fast cycling capabilities and storage in depleted gas fields (IEA, 2025; Lochard Energy, 2025). The 2024 National Hydrogen Strategy has a minimum target for clean hydrogen production in Australia of 0.5 Mtpa by 2030 and 15 Mtpa by 2050.
Australia’s hydrogen potential
Australia is well placed to become a major hydrogen producer for both domestic consumption and export. Australia has significant capacity for renewable energy generation, as well as abundant identified resources of natural gas and coal, and potential large-scale geological storage sites for any co-produced CO2. While most projects underway are still in the feasibility or engineering stages, a few hydrogen projects with capacities greater than 10 MW are progressing into construction, with production expected to commence in 2026 and 2027 (CSIRO, 2025b).
- Investment from Australian state/territory and federal governments remains steady, with $16.5 billion of committed hydrogen specific support such as the Hydrogen Headstart Round 2 and $44 billion of hydrogen eligible support through a range of programs, including the Future Made in Australia Innovation Fund (ARENA, 2026; CSIRO, 2025a).
Geoscience Australia provides open access to datasets and digital tools to assist governments and industry assess Australia’s hydrogen potential. The Hydrogen Economic Fairways Tool (HEFT), released in 2021, conducts detailed geospatial-economic analysis of future large-scale hydrogen projects and considers hydrogen produced by renewable energy and from fossil fuels with CCS. This supports policymakers and investors in their decision making regarding the location of new infrastructure and the suitability of various regions for hydrogen production.
Storage infrastructure is essential to enable hydrogen to be produced and stored during periods of low demand, then supplied during periods of high consumption. Small quantities of hydrogen can be stored in pipelines or tanks above ground. Large-scale storage of hydrogen occurs in subsurface salt caverns, although there is potential for storage in depleted gas fields or mined lined hard rock caverns (Figure 7.2). Geoscience Australia has mapped the known distribution of thick underground rock salt accumulations. Regions with thick salt that may be prospective for salt cavern construction include the Adavale, Amadeus, Polda and Bonaparte basins. Parts of the Canning and Officer basins may also contain suitable salt. In regions lacking access to either salt deposits or depleted gas fields, mined lined hard rock caverns may offer a practical solution for large-scale hydrogen storage. Geoscience Australia has identified suitable rock formations for these caverns near most announced hydrogen hubs (Figure 7.2), enabling proximity to industrial hubs and removing the need for long pipelines (Geostock, 2025). Further assessments of storage options for large-scale hydrogen are underway through Geoscience Australia’s Resourcing Australia’s Prosperity initiative.
Figure 7.2 Prospective locations for mined, lined rock caverns for underground hydrogen storage proximal to hydrogen hubs.
Australia’s hydrogen projects
There are several pilot, demonstration and small-scale projects in various stages of operation in Australia. Figure 7.1 shows the location of current hydrogen projects in Australia (as of December 2025) compiled by CSIRO’s HyResource, along with the results of a mapping scenario using the HEFT tool that considers hydrogen production from electrolysis and hybrid wind and solar. There was a decrease in the total number of hydrogen projects from 90 in 2024 to 76 in 2025 as expectations around hydrogen’s role in the energy transition have matured. The number of projects that are operational or under construction is slightly down from 30 in 2024 to 28 in 2025. The combined production capacity of these projects (currently operational or under construction) also drops from 11.5 kt in 2023 to approximately 5.8 kt (0.69 PJ) per year (CSIRO, 2025b). Project sizes are still relatively modest, with Geelong New Energies Service Station Project being the largest operating project, producing 365 tonnes per year from electrolysis using renewable electricity from the grid. One notable project is the Murchison Renewable Hydrogen project, a large-scale renewable hydrogen and ammonia production facility that was the first recipient of ARENA’s Hydrogen Headstart Program, receiving $814 million in production support over a 10-year period (DCCEEW, 2025). Construction is expected to commence in 2028.
Natural hydrogen
Australia is one of the most prospective countries for natural (geogenic) hydrogen. The extent of this geological resource is not well understood, but there are several reports of high concentrations of hydrogen in gas samples in Australia (Boreham et al., 2021). Interest in natural hydrogen is increasing and some Australian state jurisdictions have started to amend their petroleum exploration licences to include natural hydrogen. Interest intensified in 2023 with the drilling of Australia’s first dedicated natural-hydrogen wells, Ramsay 1 and Ramsay 2, on the Yorke Peninsula, South Australia. Targeting historic hydrogen shows from a 1931 bore, the wells reported high hydrogen and notable helium concentrations (Gold Hydrogen, 2023a, 2023b). Preliminary results are available from the Ramsay 3 and Ramsay 4 wells drilled in late 2025 (Gold Hydrogen, 2025a, 2025b). In 2025, the only contingent (2C) natural hydrogen resource reported was in the Amadeus Basin, Central Petroleum’s Mt Kitty project with 7.9 PJ (22 Bcf or 66,000 t), unchanged from the previous year (Table 7.1).
Table 7.1 Australia's reported natural hydrogen resources in 2025.
| Basin | Project | Hydrogen | Data source | |
|---|---|---|---|---|
| 2C Resources (PJ) | 2C Resources (Bcf) | |||
| Amadeus Basin | Mt Kitty | 7.9 | 22 | Central Petroleum Limited (2025) |
| Total | 8 | 22 | ||
Abbreviations
PJ= petajoules; Bcf = billion cubic feet.
References
ARENA (Australian Renewable Energy Agency), 2026. Hydrogen Headstart Round 2. (Last accessed May 2026).
Boreham C.J., Edwards D.S., Czado K., Rollet N., Wang L., van der Wielen S., Champion D., Blewett R., Feitz A. and Henson P.A., 2021. Hydrogen in Australian natural gas: occurrences, sources and resources. The APPEA Journal 61, 163-191.
Central Petroleum Limited, 2025. 2025 Annual Report. (Last accessed May 2026).
CSIRO (Commonwealth Scientific and Industrial Research Organisation), 2025a. HyResource - Funding. (Last accessed May 2026).
CSIRO (Commonwealth Scientific and Industrial Research Organisation), 2025b. HyResource Projects spreadsheet, updates 19 December 2025. (Last accessed May 2026).
DCCEEW (Department of Climate Change, Energy, the Environment and Water), 2024. National Hydrogen Strategy 2024. (Last accessed May 2026).
DCCEEW (Department of Climate Change, Energy, the Environment and Water), 2025. Murchison Green Hydrogen Project to get H2 Headstart. (Last accessed May 2026).
Geostock, 2025. Mined lined rock caverns and application to the Australian context. Commonwealth of Australia (Geoscience Australia).
Gold Hydrogen, 2023a. Significant Concentrations of Hydrogen and Helium Detected in the Ramsay 1 Well, 31 October 2023. (Last accessed May 2026).
Gold Hydrogen, 2023b. Ramsay 2 Update Very High Hydrogen Concentrations up to 86% Purity Found Along with the Very High Helium Concentrations, 19 December 2023. (Last accessed May 2026).
Gold Hydrogen, 2025a. Ramsay Project Operational Update Natural Hydrogen and Helium Confirmed in Ramsay 3 Well, 24 November 2025. (Last accessed June 2026).
Gold Hydrogen, 2025b. Natural Hydrogen and Helium Formation Continuity in Ramsay 4, 16 December 2025. (Last accessed June 2026).
IEA (International Energy Agency) 2025. Global Hydrogen Review 2025. IEA, Paris. (Last accessed May 2026).
Lochard Energy, 2025. H2RESTORE Project - Feasibility Summary Report. (Last accessed May 2026).
Data download
Data tables and full report are downloadable from the Geoscience Australia website.