Australia and Singapore have agreed to collaborate on development of new technology to reduce emissions, with a memorandum of understanding to be signed on Monday.

Energy and Emissions Reduction Minister Angus Taylor will sign the agreement with Singapore's Trade and Industry Minister Chan Chun Sing.

The federal government's technology road map policy to reduce greenhouse gases is "technology neutral" – open to renewable and fossil fuels alike – and supports research and development to make it cost effective for private industry to adopt low-emissions alternatives.

Mr Taylor said "technological progress is the only way to reduce emissions while continuing to grow our economies".

“Our vision is to be a global leader in low-emissions technology solutions. It’s a plan that will bring the world with us, creating jobs and supporting future prosperity," he said.

"Our co-operation is a practical demonstration of our ambition to drive down the cost of the technologies that will support jobs, lower energy costs and reduce emissions.”

Mr Chan said the partnership would strengthen the relationship between Australia and Singapore, and help in building "a more sustainable economy and and creating a low carbon future together".

Singapore and Australia have identified hydrogen and carbon capture and storage as priority technologies to align with the federal government's technology road map.

The technology road map also includes three other priority areas – low-carbon materials like steel and aluminium, energy storage, and soil carbon capture.

Australia has also signed agreements with Japan and Korea to investigate hydrogen supply chains, and Australia's potential to supply those countries with clean fuel.

Australia and Germany are co-operating on a joint feasibility study to examine what volume of hydrogen Australia could export in the future.

In June, Germany announced a $15 billion hydrogen strategy to ramp up its domestic production capacity to industry and to switch over energy sources from fossil fuels.

Hydrogen is produced from 'splitting' water into its elements via electrolysis. The electrolysis can be powered by electricity generated by renewable energy in an emissions-free process.

Alternatively, the electrolysis can be fuelled by gas or coal, and to be a clean energy source carbon capture and storage is required to prevent the emissions getting into the atmosphere.

The federal government has committed $370 million for hydrogen technology development through the Clean Energy Finance Corporation and the Australian Renewable Energy Agency.