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Following the close of the COAG Energy Council Working Group consultation period on the 9 hydrogen issues papers released by the Working Group in July, it is unsurprising that hydrogen continues to be actively discussed in the energy market.
The opportunities for hydrogen were actively discussed at this week’s Clean Energy Summit. One of the key observations in the market is how to generate demand to expedite production at scale. It is clear that some technologies are there, others are coming, and there is a considerable opportunity for Australia to position itself as a leading production and export market, but we should also not lose sight of technologies that may present domestic demand for hydrogen as an energy source / carrier.
NRF’s Hydrogen team has set out a short overview of some of our key observations and recommendations for the National Hydrogen Strategy below on the 9 areas identified by the Working Group.
Hydrogen at scale Driving scale will require a multi-faceted approach across the value chain with immediate areas for focus including:
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Attracting hydrogen investment Key drivers for positioning Australia as a leading hydrogen economy for investment will include:
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Developing a hydrogen export industry The export market potential is clear particularly with traditional energy trading partners and Government should play a key role in:
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Guarantees of origin A guarantee of origin framework will be essential for Australia to position itself as a key exporter of “green” hydrogen to key export markets with carbon-free policy targets that are set for as soon as 2030. Such a framework should focus on:
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Community acceptance and safety Existing regulations and schemes could provide a partial framework for managing carbon emissions (or reductions) of a large-scale national hydrogen industry but key areas requiring immediate attention will include:
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Hydrogen in the gas network Actively pursuing solutions to “hydrogen-proofing” the gas network are key and areas of the network in Australia may already by hydrogen-ready. Consistent with our observations and recommendations on other aspects of the consultation, the following immediate actions will be key:
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Hydrogen to support electricity When coupled with renewable technologies, electrolysis based hydrogen is well placed to manage the inherent variability of renewables and the current Government’s reliability requirements; recommendations continue to follow suit:
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Hydrogen for transport It is clear that the hydrogen opportunities will include engagement from all stakeholders in the transport industry and will increase further investment in the energy market from non-traditional energy companies. The same priorities will apply for adapting the transport network to facilitate hydrogen transport:
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Hydrogen for industrial users There are multiple areas within Australia where there is an existing or potential demand for hydrogen from industry and key areas for early focus of pilot and commercialisation schemes will include:
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Our full service team continues to advise participants in the Australian market and globally on these and other areas as the hydrogen economy grows and would be happy to discuss these or other hydrogen related matters with you at any time.
If you have any queries, please contact us.
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