By investing significant funds to lower the cost to generate solar energy it could have a ripple effect throughout the Australian energy market with solar a key resource to create large-scale hydrogen.

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Another factor is that, with Australia’s abundance of solar energy, if the nation is able to produce it widely at a cheaper cost, then hydrogen could well be coupled with this and create a booming market with large quantities of hydrogen being exported around the globe.

This could radically increase Australia’s global position in the hydrogen market and see the nation become a powerhouse for the clean energy carrier.

ARENA said that ultra-low cost solar will be a key input to scaling up production of low-cost green hydrogen, in support of the LETS hydrogen goal of “H2 under $2”, as well as key to unlocking other decarbonisation pathways for heavy industry including low emission materials such as green steel and aluminium.

Darren Miller, CEO of ARENA, said, “This $40m R&D funding round will support Australia’s solar researchers and industry to get behind the target of Solar 30 30 30 and drive the innovation that will deliver ultra-low cost solar.

“Ultra-low cost solar will be a vital component in helping Australia move towards a lower cost, largely renewable electricity system and achieve the goal of net zero emissions by 2050.”