The Australian government has recently unveiled the new National Hydrogen Strategy. This strategy aims to steer both industry and regulators in effectively utilizing hydrogen, thereby aiding Australia in fulfilling its decarbonisation goals. Furthermore, it reinforces the nation’s ambition to emerge as a major player in renewable energy exports.
The CSIRO has brought its extensive expertise in hydrogen technologies and economic modelling to assist the Department of Climate Change, Energy, the Environment and Water in developing this robust strategy. But why exactly is hydrogen viewed as a key player in achieving net zero emissions for Australia?
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How is Hydrogen Made?
Dr. Sarb Giddey, Group Leader (Thermal and Electrochemical Technologies Group), CSIRO
Currently, Australia and various other nations produce significant quantities of hydrogen, primarily for ammonia production and petrochemical processes. A considerable portion of this production is based on natural gas, making it ‘non-renewable hydrogen’. The methods employed in generating hydrogen from natural gas result in carbon dioxide emissions. To mitigate this, carbon capture, utilization, and storage (CCUS) technologies can prevent CO2 from entering the atmosphere, though successful global examples of this remain limited.
An alternative method is the electrolysis of water, wherein an electrolyser divides water into hydrogen and oxygen. This process demands considerable electricity—around 55 kWh to produce one kilogram of hydrogen. However, if this electricity originates from renewable sources, it’s termed ‘renewable hydrogen’ or ‘green hydrogen’.
Contribution to Australia’s Economy and Decarbonisation Goals
Dr. Sarb Giddey
When hydrogen is combusted or converted into electricity through fuel cells, it emits no carbon. Thus, renewable hydrogen offers numerous avenues for mitigating climate change. For instance, the versatility of renewable hydrogen means it can be harnessed to reduce greenhouse gas emissions across various sectors.
Many nations are keen on expanding their hydrogen usage, but most lack the extensive solar and wind resources that Australia possesses. Consequently, Australia can produce and export hydrogen or hydrogen derivatives, like ammonia.
The Roadblocks to Adoption
Dr. Dietmar Tourbier, Energy Research Unit Director, CSIRO
Efforts are being undertaken to surmount the technical obstacles that currently hinder hydrogen’s integration into Australia’s energy landscape. Key challenges include:
- Cost and Efficiency: Generating renewable hydrogen requires substantial renewable energy. Prolific growth in Australia’s renewable energy production and ongoing global research aim to develop more affordable, efficient electrolysers that require less electricity.
- Storage: Given hydrogen’s lightweight nature, its storage poses unique challenges. Options include compressed gas, cryogenic liquids, chemical derivatives like ammonia, or solid structures. Extensive research is ongoing to ensure safety and minimize costs for hydrogen storage solutions.
- Infrastructure: The transport of hydrogen necessitates a robust infrastructure—pipes, storage tanks, transport vehicles, and dosing facilities. As of now, Australia has fewer than ten hydrogen refuelling stations, a number that must increase dramatically for widespread hydrogen-powered transportation.
- Safety and Regulation: Hydrogen’s combustibility underscores the importance of effective safety regulations. Collaborative efforts between the government and industry are currently underway to review and update legislative frameworks.
- Skills Development: With industry expansion, there’s a growing need for skilled professionals in hydrogen production, storage, distribution, and refuelling operations. Universities and vocational training centers are developing programs to equip Australians with necessary skills.
Impact of the National Hydrogen Strategy
Dr. Patrick Hartley, Hydrogen Industry Mission Leader, CSIRO
The primary objective of any government strategy is to guide relevant departments, industries, and service providers towards beneficial efforts. Australia’s initial National Hydrogen Strategy, released in 2019, highlighted various opportunities for both domestic use and export. Since then, substantial investments from governments and the private sector have occurred in a wide array of hydrogen applications.
As global competition heightens, the crux of the challenge lies in focusing investments and policies effectively while scaling the hydrogen industry. Sharing insights and research will be pivotal in navigating these complexities while catalyzing plans for producers, transporters, users, and developers of hydrogen infrastructure.
Contributions of CSIRO to the National Hydrogen Strategy
Dr. Patrick Hartley
The CSIRO played a significant role in crafting various analytic studies for the National Hydrogen Strategy team at the federal Department of Climate Change, Energy, the Environment and Water (DCCEEW). Their insights, paired with existing studies, informed the strategy’s development.
Moreover, CSIRO acted as a representative for the hydrogen research and development sector within the DCCEEW’s National Hydrogen Strategy Advisory Group. Key inquiries tackled by their studies included:
1. Hydrogen’s Role in Net Zero Goals and Economic Contributions
Utilizing an esteemed international economic model, CSIRO produced forecasts to gauge the optimal production levels and applications for hydrogen, all while aligning with Australia’s net zero objectives. This modelling identified promising sectors, including ammonia production and heavy mobility.
2. Research and Development Opportunities in Hydrogen
Research teams evaluated literature and consulted stakeholders to pinpoint Australia’s strengths and technological priorities in hydrogen, finding that increased support is vital for advancing innovations from research stages to commercial application.
3. Decarbonisation of Heavy Road Freight
Using the Transport Network Strategic Investment Tool (TraNSIT), CSIRO assessed emissions in the heavy road freight sector, revealing the feasibility of hydrogen technologies playing a critical role.
4. Fuel Security and Cost Analyses
CSIRO’s research also informed the strategy regarding Australia’s energy security concerning clean energy exports, including an analysis of the forecasted costs for renewable hydrogen versus hydrogen derived from natural gas.
CSIRO recognizes the new National Hydrogen Strategy as a comprehensive roadmap to bolster Australia’s hydrogen sector in addressing climate change.