Australia's national science agency has announced a research mission aimed at making hydrogen production affordable.

The Commonwealth Scientific and Industrial Research Organization (CSIRO) on Wednesday launched the 68 million Australian dollar (52.9 million U.S. dollar) Hydrogen Industry Mission.

More than 100 research projects will be funded by the mission over the next five years, with a goal of driving down the price of hydrogen production to under two Australian dollars (1.56 U.S. dollars) per kilogram.

Larry Marshall, the chief executive of the CSIRO, said the mission would help create a new industry to meet future energy needs of Australia and the world.

"Australia can become a renewable energy leader through the production, use and export of hydrogen, but it will only become a reality if we breakthrough the $2/kg barrier. That needs Australia's world class science working with CSIRO's commercialization expertise turning breakthrough science into real-world solutions," he said in a media release.

"Taking a Team Australia approach is essential to creating the 8,000 jobs and $11 billion a year in GDP that hydrogen can contribute to Australia's economy as we build back better from the impacts of COVID-19," he said.

Patrick Hartley, the Hydrogen Industry Mission leader, said the science agency was well-placed to drive industry collaboration.

"The goal of this Mission is to support the vision of a clean and competitive hydrogen industry for Australia by delivering research, development and demonstration partnerships which help make Australia's hydrogen markets a reality," he said.