Is hydrogen the future of Australia’s renewable energy sector?
Hydrogen has the potential to be Australia’s next multibillion-dollar export opportunity.
The falling cost of renewable energy production, alongside Japan’s commitment as a long-term, large-scale customer for hydrogen produced through low-emissions method, are key factors that have influenced the profitability of producing and exporting hydrogen
It is also an attractive low-emissions alternative for use closer to home. There is potential for hydrogen to be introduced into Australia’s existing gas network in the near future, and for it to replace diesel fuel in long-distance heavy transport.
Australia is a frontrunner in its ability to create hydrogen on a large scale, through methods of wind, sun, coal, methane and carbon sequestration, and the industry is currently boosting its credentials as a supplier of hydrogen alongside countries such as Norway, Brunei and Saudi Arabia.
The CSIRO estimates that by around 2025 clean hydrogen could be cost-competitive with existing industrial feedstocks such as natural gas, and energy carriers such as batteries.