The Morrison government hopes a deal with Germany will help pave the way for Australia's hydrogen industry.
Hydrogen is being touted as the next big thing in energy resources to enable cleaner economies, and Australia is working to cement the building blocks to become a major exporter.
The deal signed with Germany on Friday confirms a joint feasibility study to look at collaboration on a future hydrogen supply chain between the nations.
Trade Minister Simon Birmingham says such deals are key for Australia to build a world-leading hydrogen industry.
"Exploring opportunities for future collaboration on commercial scale operations and investments in hydrogen production is vital if Australia is to realise the significant economic benefits and job creation opportunities hydrogen brings," he said.
Resources Minister Keith Pitt says the study will help inform two-way trade and investment for hydrogen between Australia and Germany.
A $300 million kitty has previously been set up for hydrogen project funding, aimed at making it more economically competitive.