At the G7 Summit on Sunday, a joint declaration was signed between Germany and Australia to boost cooperation on commercialising and purchasing green hydrogen. Prime Minister Scott Morrison and German Chancellor Angela Merkel have agreed to set up a German-Australian hydrogen innovation and technology incubator.
The deal will be backed up with $50 million in funding from Australia and 50 million euros (A$78 million) from Germany.
Dr Michael Zettinig, head of governmental affairs at the German-Australian Chamber, said:
It is a great win for Australia as a future exporter and for Germany as a purchaser and technology partner. This gives both countries a competitive edge in the global hydrogen landscape.
With green hydrogen seemingly constantly in the news, let's take a look at 3 ASX hydrogen shares operating in the sector.
3 ASX shares involved with hydrogen
Fortescue Metals Group Limited (ASX: FMG)
The chair of Fortescue, Andrew 'Twiggy' Forrest, is one of green hydrogen's biggest proponents.
As reported in the Australian Financial Review on 15 June, Forrest is planning on developing green energy projects in various locations in Africa. He reportedly has investors primed to inject more than $US100 billion into producing green hydrogen that will be aimed at European markets.
The ASX blue-chip company is planning on investing billions into hydrogen fuel as it aims for net-zero emissions by 2040. The Fortescue share price is up by more than 60% over the past year.
Hazer Group Ltd (ASX: HZR)
According to the company's literature, Hazer Group operates in the research and development of graphite and hydrogen production technology.
Part of the company's mission is to develop innovative solutions using its technology to serve the global industrial hydrogen market. Hazer is aiming to produce hydrogen at a lower cost than other alternatives and reduce the carbon footprint of its customers.
The $135.16 million cap company has had a great 12 months, with the Hazer share price rising by around 137% over the past year.
Province Resources Ltd (ASX: PRL)
The Province Resources share price hit an all-time high in April when the company announced its global green hydrogen project agreement. Signed on 16 April, the company entered a memorandum of understanding with global renewable energy leader Total Eren. The joint venture with the French company will develop a potential 8-gigawatt green hydrogen project in Australia.
Province Resources is valued at around $152 million and has had an astonishing 12 months growing its share price by more than 640%.
So why all the fuss with green hydrogen?
As highlighted by an ABC report earlier this year, green hydrogen is made without fossil fuels and "has been identified as the clean energy source that could help bring the world to net-zero emissions". According to the article, green hydrogen can be used in the fuel cells of electric cars and trucks as well as container ships. Green hydrogen also has the potential to be used instead of coal via "green steel" refineries which burn hydrogen instead.
Other uses also see hydrogen-powered electricity turbines used to generate power and as a substitute for natural gas for cooking and heating in homes.
Foolish takeaway
There appears to be somewhat of a money trail following green hydrogen lately. The European Union plans to scale up renewable hydrogen projects and invest a cumulative amount of 470 billion euros ($740 billion) by 2050.
With that sort of investment splashing around, it is difficult not to get excited by the newly formed German-Australian hydrogen deal and what it could potentially mean for Australian companies that already have a green hydrogen vision.
