A new report from Australia’s national science agency, CSIRO, has projected Australia’s hydrogen electrolyzer manufacturing (HEM) sector could generate $1.7 billion in revenue and create nearly 4000 jobs by 2050. The Hydrogen Electrolyser Manufacturing report highlighted a significant opportunity in manufacturing devices that generate hydrogen from water using electricity, positioning Australia as a key player in the global transition to renewable hydrogen production.

The research underscored Australia’s strong starting position, with an emerging cohort of Australian electrolyzer manufacturers translating innovations from the country’s research sector, and a significant domestic pipeline of projects seeking to produce renewable hydrogen.

CSIRO’s report recommended a coordinated approach across research, industry, and government to realise the full potential of Australia’s HEM sector. Key strategies include:

• Aggregated demand: Aligning with adjacent clean energy manufacturing opportunities to facilitate strategic investments and decisions.

• Sovereign capabilities and international partnerships: Exploring international partnerships to preserve domestic value creation.

• Strategic manufacturing hubs: Identifying and promoting manufacturing hubs that leverage Australia’s renewable electricity advantages, while managing inflexible costs such as labour and logistics.

In addition to electrolyzer manufacturing, the report also identified significant potential for growth in electrolyzer installation services, with projections of an additional $1.2 billion in revenue and 1,000 jobs by 2050.