Mapping Australia's Hydrogen Ambition
Hydrogen in APAC - Setting Direction for a Booming Hydrogen-based Economy
"In terms of where the opportunity is for renewable hydrogen, it’s in Australia, without a question."
- Dr. Amy Philbrook, Future Fuels Division, ATCO
With superior resource endowment, solid industrial foundation, and strong policy settings, Australia is leading the way to scale up the global hydrogen economy. Both IEA and the World Energy Council have confirmed Australia’s potential as a future hydrogen “superpower”. However, it is also clear that other countries around the world are making huge progress, eg. the Inflation Reduction Act of US, RePowerEU in Europe, Transmission cost waiver in India.
How can Australia achieve and maintain a sustainable competitve advantage? On Nov 2, we held the IMPACT Live “Mapping Australia’s Hydrogen Ambition”.
Our Top 6 Key Takeaways:
1.The triple role of hydrogen
Hydrogen is not only an important vector to decarbonize the energy system, but can also be used as a key lever to revitalize the Australia economy, especially in terms of upgrading the Aussie export competitiveness (green energy commodities, green minerals), and attracting global manufacturing industry to Australia (low energy cost).
2.The current scale is set by export opportunity
Despite the potential in decarbonizing the domestic mining, mobility, power generation sector, the scale of hydrogen in Australia is still predominantly set by its export potential, mainly in green hydrogen and green ammonia, and supply to East and North Asia.
3. Social licensing is a priority concern for early phase projects
Securing land access is a prerequisite for green hydrogen projects, as it is for renewables. In Australia, a large amount of land is owned by indigenous people, therefore social licensing and local community engagement are very important first step for early phase projects.
4. Offtake, though still faced with debate on premium, is welcomed with huge demand
In order to obtain bank financing, a long-term off-take agreement is very important, especially given the volatile nature of the NEM market in Australia. But overall, end-user interest and demand for green hydrogen and its derivatives is on the rise.
5. Industry calls on faster permitting process to upgrade ports and associated infrastructure
To build an export industry chain, the ports and surrounding transmission and distribution lines need to be upgraded accordingly. The currently challenge lies on the speed of approval, which requires further alignment between the private and public sectors.
6. Queensland is in full gear to unlock the state’s hydrogen potential
The renewable energy potential in QLD is world-class, both from wind and solar potential, have large state-owned trans network, 14 ports experienced in bulk energy commodity exports. Under facilitation of the Hydrogen Division, a series of hydrogen-related initiatives were also announced in 2022, including "QLD’s Zero Emission Vehicle Strategy 2022-2032" (March, 2022), "Hydrogen Industry Workforce Development Roadmap 2022-2032" (July 2022), "Hydrogen Safety Code of Practice - Pertrolem and Gas Inspectorate" (Final Draft, August 2022), "QLD’s Energy and Jobs Plan" (September, 2022) and "Enablimg Queensland’s Hydrogen Production and Export Opportunities" (October, 2022)
Insights Brought to You by:
Deputy Director-General of Hydrogen Division
QLD Department of Energy and Public Works
Dr. Amy Philbrook
Future Fuels Division
Partner – New Energy Lead
General Manager, New Energy Projects
Lead Port & Marine Engineering
Fortescue Future Industries
Midstream Energy Director
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