Australia could be Taiwan's green hydrogen gateway in the Indo-Pacific, as the self-governing island backs in a "democratic supply chain" of nations to help safeguard energy needs.
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Taiwan is home to the majority of the world's most advanced semiconductor chips, and holds a 68 per cent global market share of chip production.
Semiconductors are used for devices including smartphones and laptops, and are critical for communication infrastructure allowing global connectivity.
The island's government body responsible for planning and reviewing its overall construction would like to work with "friendly partners" to meet the needs of energy-intensive industries such as manufacturing chips.
The Taiwan Semiconductor Manufacturing Company, the largest chip manufacturer, consumed more than six per cent of the island's total power supply in 2021.
As the industry's demand for artificial intelligence grows, even greater amounts of power will be needed.
National Development Council Deputy Minister Shien-Quey Kao said Taiwan wanted to continue to do its part in supporting a "democratic supply chain" of countries.
"Our main focus of collaboration with Australia in the energy field is on hydrogen," she said.
"In order to produce green hydrogen, we need surplus green energy, which is not something that Taiwan enjoys currently, but Australia enjoys ... due to your solar power capacity."
Pointing to Australia's existing relationships with other nations in the region including Japan, Ms Kao said Taiwan also hoped to join this hydrogen energy supply chain.
Australia already supplies liquefied natural gas to Taiwan, but hydrogen is expected to account for up to 12 per cent of the island's energy share by 2050, she added.
"We understand that Taiwan is home to the most important strategic resources right now," Ms Kao said.
"So energy security is definitely a top topic in all the policy planning and considerations in Taiwan, be it the national security agencies or other industries in Taiwan's government."
Australia is aiming to become a green hydrogen powerhouse due to its vast renewable energy resources and closeness to energy-intensive markets.
Green hydrogen can be extracted from water through a process that doesn't produce emissions.
Meetings between leaders from the Indo-Pacific have resulted in joint statements stressing the importance of diversification of clean energy supply chains, seen as critical to the region's security.
The government of the Republic of China (Taiwan) fled to the island in 1949 during the civil war with the Chinese Communist Party.
The island is claimed by the People's Republic of China as part of its territory.
The AAP reporter travelled to Taipei with the assistance of the Taiwanese government.
Australian Associated Press
