Australia is poised to become a major global producer of hydrogen, supported by the government’s $4 billion investment in the Hydrogen Headstart program driving large-scale renewable hydrogen projects. Here, Energy Source & Distribution looks at the hydrogen projects underway across the nation and Australia’s potential as a hydrogen superpower.
Why hydrogen, and why here?
Hydrogen can be a carrier of energy where you cannot directly electrify or use batteries, whether a matter of time or weight or distance, says Australian Hydrogen Council CEO Dr Fiona Simon.
“Australia has incredible renewable energy potential and existing infrastructure to support new export markets. We also have manufacturing opportunities, such as components and assembly for electrolysers.
“The major opportunities are currently in the production of green and clean hydrogen and derivatives such as green ammonia, green metals and sustainable aviation fuel. This will open up opportunities to decarbonise domestically and create new export markets with our strategic trade partners such as Japan and Korea.”
Related article: Aussie breakthrough to slash green hydrogen costs by 40%
Misconceptions and applications
Dr Nikolai Kinaev, leader of CSIRO’s Hydrogen Energy Systems Future Science Platform, says hydrogen is often misunderstood.
“Hydrogen is not a fuel. Fuel is something you burn or use to get more energy from than you use to produce. When you produce hydrogen from electrolysis, you split the water molecule and spend some energy. Unfortunately, due to thermodynamics, you use more energy to produce hydrogen than you get from it. However, with so-called ‘natural’ hydrogen that is formed sub-surface, the energy is kindly donated by geological processes, which means we can see it as ‘free energy’,” he says.
“The other misconception is that hydrogen is a silver bullet. It is simply an important part of an overall, balanced solution.”
Dr Kinaev outlines some of the main applications for hydrogen in Australia’s decarbonisation journey:
Energy storage
Hydrogen can be used as an energy storage medium to balance renewables’ intermittency in the electricity grid. Excess electricity, particularly from wind or solar, can be used to produce hydrogen through electrolysis. The hydrogen can then be stored and converted back to electricity when needed. Hydrogen can also be used as longer-term seasonal energy storage, storing excess energy generated during peak times for use during periods of high demand.
Industrial use
Hydrogen is an excellent feedstock for industrial processes such as the production of ammonia for fertilisers, petroleum refining, and the production of methanol. It can also be used in industries like steel production as a reducing agent to remove oxygen from iron ore, lowering carbon emissions. Hydrogen can also be used to convert biomass or waste into synthetic fuels.
Transportation
Hydrogen is used as a fuel in fuel cell vehicles (FCVs), where it reacts with oxygen in a fuel cell to produce electricity, powering the vehicle’s electric motor. FCVs emit only water vapor as a byproduct, making them a zero-emission option. Hydrogen can also be used directly or blended with traditional fuels in internal combustion engine (ICE) vehicles.
Technologies Dr Alan Finkle filling up his Toyota Mirai at CSIRO’s Hydrogen Refuelling Station
Power generation
Hydrogen can be used in combined heat and power (CHP) systems to generate both electricity and heat for industrial and residential applications. It can also be burned in gas turbines for power generation during peak demand periods.
Commercialisation challenges
Launched in 2021, CSIRO’s Hydrogen Industry Mission focuses on leveraging the national science agency’s hydrogen research capabilities in partnership with government, industry and the research community.
“When it comes to commercial viability, the challenge is to have a project that is good science and relevant to the industry,” Dr Kinaev explains, noting that most of the hydrogen technologies we need are already available.
“If we wanted to switch our hydrogen industry on tomorrow, we could. It wouldn’t be efficient or cost-effective, but it could be done,” he says.
“A key factor is supply and demand. Users won’t invest heavily in hydrogen use applications unless they are sure there is a demand for it.
“Secondly, you need the infrastructure for production, storage, transport, etc. Green hydrogen depends on renewables. We need to look at a storage and distribution network suitable for hybrid large-scale production. Then, we need to identify where is the technology gap for use of hydrogen at smaller scales.”
“Thirdly, little will progress unless we have good social acceptance. We need social surveys carried out by social scientists who provide expertise through advance maths to gauge social acceptance.”
Innovation and opportunity
Hydrogen provides an opportunity for moving manufacturing back to Australia on a new technology level that is environmentally friendly,” Dr Kinaev explains.
“It provides an opportunity to bring sovereign industry back to Australia through which we can generate wealth, not just from the resources but also from the products. Australia has a good chance to become a supplier of technologies and critical parts for hydrogen-related technologies as well.”
Dr Kinaev also points to Australia’s development of hydrogen hubs as “world-class models” for industry.
“Because we have various types of hydrogen producers, handlers and users, it is important to have a compact area where all these stakeholders can learn what type of infrastructure they need, how to interact with each other and work on the synergy required. Hubs are not just centrepieces but ecosystems; a small model for a much larger industry.
Australian companies are also responsible for a number of breakthroughs in electrolysis, with Hysata and CSIRO spin-offs Hadean Energy and Endua demonstrating world standards in terms of the efficiency. Sparc Hydrogen and its university partners have developed breakthroughs in photocatalytic water splitting, which provides an alternate method of producing renewable green hydrogen.
Universities and CSIRO are both working in this area, with CSIRO looking at the manufacture of scalable options.
Accelerating Aussie hydrogen
Asked about the policies and initiatives required to keep Australia at the forefront of the global hydrogen market, Australian Hydrogen Council CEO Dr Fiona Simon says the Federal Budget measures announced by the Australian Government in May were “an important step in the right direction”.
“However, steps need to be taken quickly to ensure there is clear policy to get major hydrogen projects for the 2030s and 2040s to a final investment decision. Incentives are absolutely vital. The public interest is in decarbonisation, and without very strong economy-wide price signals to value carbon—and even with them—we need to look at incentives from government to help bridge the gap,” she says.
“We expect more to be addressed in the refreshed National Hydrogen Strategy, which is to be released this year.”
Hysata CEO Dr Paul Barrett says Australia must ensure cohesion with trading partners to facilitate global trade of hydrogen and its derivatives.
“Trade agreements with our allies, with the goal of securing offtake of Australian-produced hydrogen or derivatives, notably green iron, can help projects reach final investment decision,” he explains.
“Australia will also see a large demand for electrolysers, and other equipment and materials that are needed across the green hydrogen supply chain. Hysata would like to see strong domestic content requirements across Hydrogen Headstart and the Hydrogen Production Tax Incentive program in line with what we are witnessing in the EU and US. It is important for Australia to build self-reliance in the green hydrogen industry to accelerate its scaling.
“Hysata would also like to see the federal and state governments establish green iron as a priority industry for the country and support its development and export. Iron is of critical national importance to the Australian economy and global industry, estimated at approximately AU$135 billion in domestic export earnings for the most recent financial year. Converting it to green iron has the potential to increase our export earnings from iron ore five times. South Australia is moving ahead with its green iron strategy, and we would like to see other governments follow.”
Related article: Findings shared from Australia’s first hydrogen microgrid
Did you know?
It is estimated the clean hydrogen industry will support 16,000 jobs by 2050, plus an additional 13,000 from the construction of related renewable energy infrastructure. Australian hydrogen production for export and domestic use could generate more than $50 billion in additional GDP by 2050, and result in avoided greenhouse gas emissions equivalent to a third of Australia’s current fossil fuel emissions by 2050.
