Australia Electrolyzer Market Overview, 2030

Australia’s electrolyzer market is rapidly evolving toward becoming a global green hydrogen powerhouse. The updated National Hydrogen Strategy, released in 2024, sets out a clear vision for Australia’s hydrogen industry it aims to build a clean, innovative, safe, and competitive hydrogen sector that supports net-zero goals and positions the country as a world leader. The government has allocated approximately AU$22.7 billion under its Future Made in Australia agenda, including a AU$2-per-kilogram Hydrogen Production Tax Incentive and a AU$4 billion Hydrogen Headstart Program, designed to accelerate project deployment and bridge cost gaps. These incentives are expected to unlock up to AU$50 billion in private investment and help achieve annual production of more than one million tonnes of green hydrogen by 2030. Technological breakthroughs are enhancing market potential Australian company Hysata has developed an electrolyzer achieving an unprecedented 95% efficiency relative to the higher heating value of hydrogen, substantially reducing energy consumption per kilogram. In Western Australia, massive renewable energy projects such as the Australian Renewable Energy Hub, with 26 GW of wind and solar capacity, are being designed to drive electrolyzer growth and hydrogen export infrastructure. Regional initiatives like South Australia’s hydrogen tender supporting development of a 250 MW electrolyzer and hydrogen-fired power generator demonstrate innovation in grid integration and energy storage. Regulators are also developing standardized frameworks to enhance safety, certification, and public confidence, while design advances such as high-pressure operation and modular electrolyzer architecture are improving system efficiency and responsiveness.

According to the research report ""Australia Electrolyzer Market Overview, 2030,"" published by Bonafide Research, the Australia Electrolyzer market is expected to reach a market size of more than USD 270 Million by 2030. Australia’s electrolyzer market is driven by its exceptional renewable resources, global export ambitions, and strategic industrial policy. Key market drivers include abundant solar and wind energy, climate imperatives, and the pursuit of low-carbon hydrogen exports. One landmark project, the Australian Renewable Energy Hub, is planned to deliver 26 GW of wind and solar capacity aimed at renewable hydrogen and ammonia production for domestic use and export. South Australia is advancing large-scale deployment with initiatives such as hydrogen jobs plan centered around Port Bonython securing AU$100 million in funding for infrastructure to support electrolyzer facilities, hydrogen storage, and power generation capable of producing up to 1.8 million tonnes of hydrogen by 2030. Leading companies are stepping in Fortescue’s joint venture in Queensland with Plug Power is set to house the world’s largest electrolyzer manufacturing facility, offering 2 GW of annual production. Government fiscal incentives remain crucial for example, the Hydrogen Production Tax Incentive and Hydrogen Headstart programs provide direct cost subsidies and financial support to catalyze large-scale project execution. Operational value is gleaned from integrating electrolyzers with grid operations projects in South Australia are demonstrating electrolyzers’ ability to absorb surplus solar energy and act as virtual generators during peak demand. Research, development, and manufacturing capability are growing, with innovators like Hysata pushing efficiency frontiers and the Australian Renewable Energy Agency backing pilot programs, feasibility studies, and early-stage deployments.

In Australia, the Alkaline Electrolyzer market is well-established, largely due to its cost-effectiveness and proven ability to operate at large scales. Alkaline electrolyzers, which use a liquid alkaline electrolyte typically potassium hydroxide to split water into hydrogen and oxygen, have been the primary technology for industrial hydrogen production for decades. Their widespread application includes ammonia production, refining, and petrochemical industries, where hydrogen is a key raw material. However, the alkaline electrolyzers are relatively slower in response to fluctuating power inputs, and their efficiency tends to be lower than newer technologies. On the other hand, Proton Exchange Membrane (PEM) Electrolyzers are gaining traction in Australia due to their ability to deliver high-purity hydrogen and adapt efficiently to the intermittent nature of renewable energy sources like wind and solar. PEM electrolyzers work by using a solid polymer membrane for proton transport, which leads to fast response times and compact designs, making them well-suited for applications where speed and purity are critical, such as transportation and fuel cells. Despite their advantages, PEM electrolyzers are still hampered by the high costs of catalysts, including platinum, and their relatively shorter lifespan. Solid Oxide Electrolyzer Cells (SOECs) are also emerging as a potential solution in the Australian market, especially for industries with access to high-temperature processes or waste heat, such as steel manufacturing. SOECs operate at elevated temperatures, improving efficiency and reducing electricity consumption for hydrogen production. However, this technology is still in the developmental stage, facing challenges related to material stress and the need for expensive materials. Anion Exchange Membrane (AEM) Electrolyzers are in the early stages of development but show promise for the Australian market due to their potential for lower-cost hydrogen production.

In Australia, Power Plants represent a key application for electrolyzers, particularly in the context of Power-to-Gas (PtG) technologies. PtG allows surplus renewable energy from solar and wind to be converted into hydrogen, which can either be used as a fuel or injected into the natural gas grid. Given Australia’s abundant renewable energy resources, PtG is seen as an essential technology for enhancing grid stability and balancing the intermittent nature of renewable energy sources. The Energy Storage and Fueling for FCEVs application is another significant area of growth for electrolyzers in Australia. The country is increasingly focusing on the deployment of Fuel Cell Electric Vehicles (FCEVs) to reduce emissions in the transport sector, and electrolyzers play a vital role in producing the hydrogen needed for FCEV fueling infrastructure. Australia has made several strides in building hydrogen refueling stations and is poised to become a major player in the hydrogen economy, which is driving demand for electrolyzers. In Industrial Gases, electrolyzers provide a cleaner and more sustainable means of producing hydrogen for applications like ammonia production and oil refining, both crucial industries in Australia. Furthermore, the Steel Industry, which is a significant contributor to Australia’s emissions, is exploring the use of hydrogen in processes like Direct Reduction Iron (DRI) to decarbonize steel production. Hydrogen’s potential in reducing carbon emissions is central to Australia’s strategy for meeting its long-term climate goals. In the Electronics & Photovoltaics sectors, electrolyzers are critical for producing ultra-pure hydrogen used in semiconductor manufacturing and the production of photovoltaic cells. Lastly, the Others category in Australia includes emerging applications such as Sustainable Aviation Fuel (SAF) and hydrogen production for ammonia or methanol.


Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report
• Electrolyzer Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Technology
• Alkaline Electrolyzer
• Proton Exchange Membrane (PEM)
• Solid Oxide Electrolyzer (SOE)
• Anion Exchange Membrane (AEM)

By Application
• Power Plants
• Energy Storage or Fueling for FCEV's
• Industrial Gases
• Power to Gas
• Steel Plant
• Electronics & Photovoltaics
• Others Show more