A recent report by Australia’s national science agency, CSIRO, has unveiled an opportunity for the nation’s hydrogen electrolyser manufacturing (HEM) sector, projecting $1.7 billion in revenue and nearly 4,000 jobs by 2050.
The Hydrogen Electrolyser Manufacturing report spotlights Australia’s potential to become a global leader in manufacturing electrolysers—devices that use electricity to extract hydrogen from water—amid the worldwide shift toward renewable hydrogen production.
According to the report, Australia is well-positioned to capitalise on this growing industry. A burgeoning community of Australian electrolyser manufacturers is translating local research innovations into tangible applications, supported by a significant domestic pipeline of renewable hydrogen projects.
Vivek Srinivasan, CSIRO Futures Energy Lead, stressed 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,” Srinivasan said.
He added that leveraging Australia’s renewable energy resources and research capabilities could establish the country as a key player in this rapidly expanding market.
The report underscores the importance of collaboration between research institutions, industry stakeholders, and government bodies to unlock the full potential of the HEM sector.
Key strategies include aggregated demand by aligning investments with adjacent clean energy manufacturing opportunities, forming global partnerships while preserving domestic value creation, and developing strategic manufacturing hubs that utilise Australia’s renewable electricity advantages while managing costs like labour and logistics.
Beyond manufacturing, the report identified an additional $1.2 billion revenue opportunity and 1,000 new jobs in electrolyser installation services by 2050.
Dr Patrick Hartley, Leader of CSIRO’s Hydrogen Industry Mission, emphasised the need for swift action to secure Australia’s place in the global market.
“Australia has a significant pipeline of renewable hydrogen projects, with specific electrolyser procurement and maintenance needs,” Dr Hartley said.
“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.”
Read the full report to learn more about Australia’s hydrogen electrolyser opportunity.
