Already considered as an international leader in developing a clean hydrogen energy future, a number of new developments have added extra momentum to Australia’s plans.
Australia governments have made it clear over a number of years that they view hydrogen as a key plank in the nation’s net zero target plans.
Within major announcements recently made within days of each other, the Federal government unveiled a massive budget injection in support of the nation’s rapidly moving hydrogen plans and confirmed a new hydrogen partnership with India.
Not to be left out, the Queensland and Western Australian governments have also achieved significant milestones in their respective states.
Budget injection
In its recent Budget rumblings, the Australian Government highlighted the establishment of a $2 billion Hydrogen Headstart initiative to underwrite the biggest green hydrogen projects to be built in Australia.
According to the government-backed Australian Renewable Energy Agency (ARENA), funding will provide revenue support for investment in renewable hydrogen production through competitive production contracts.
ARENA, which will be responsible for the distribution of Hydrogen Headstart funding, said the program aims to support two to three flagship projects which have the potential to generate one gigawatt of hydrogen electrolyser capacity.
Indian partnership
Indian prime minister Narendra Modi and his Australian counterpart Anthony Albanese recently made the signing of an agreement to create a new Green Hydrogen Taskforce a major highlight of the Indian PM’s visit down under.
The two countries have agreed to work together on swapping ideas and expertise through a joint effort to accelerate both countries’ foray into green hydrogen.
“The taskforce will comprise Australian and Indian experts in renewable hydrogen and report to the Australian-Indian Ministerial Energy Dialogue on the opportunities which are there for Australia and India to cooperate in this important area of renewable hydrogen,” prime minister Albanese said.
Australia also has partnerships in place with: Germany, Japan, the Republic of Korea, Singapore, United Kingdom, United States and the Netherlands.
$117 million Queensland investment
In what is being labelled as the largest investment in green hydrogen in Australia’s history, the Queensland and Federal governments have joined with consortium partners to deliver a $117million investment in a new project in the State’s north.
The funds will support the Front End Engineering Design (FEED) phase for Queensland’s largest renewable hydrogen project in Gladstone.
The part-publicly owned mega Central Queensland Hydrogen project has been rated as being within the top 10 hydrogen projects in the world that are at a similar stage of development.
The Gladstone project has already been identified as a significant opportunity for a new green hydrogen export industry, generating over $17.2 billion in hydrogen exports over a 30-year project life.
It has also been identified as providing a significant employment opportunity by creating almost 9,000 new jobs.
FEED will focus on an 800 tonnes per day clean, green hydrogen project with a targeted start-up in the 2030.
ARENA will provide $20 million Federal funding, with the Queensland pumping in $15 million and the remaining $81.8 million will come from consortium partners,
Federal minister for Climate Change and Energy, Chris Bowen, said the government is committed to making Australia a global hydrogen leader.
“Projects like the CQ-H2 Project could lead the way in exporting renewable hydrogen to the international market.”
Queensland premier, Annastacia Palaszczuk, said this international partnership shows Queensland’s dominant position as a global hydrogen heavyweight.
“This is excellent news for Queenslanders because its projects like this that will unlock huge economic opportunities by creating thousands of local jobs and billions of dollars in investment.
Western Australian hydrogen hub taking shape
The Western Australian government, backed by its massive natural gas reserves, also views itself as a major international hydrogen industry player.
It has confirmed that the first companies are preparing to enter the state’s much heralded Mid-West Hydrogen Hub.
The government named Kinara Power and Blue Diamond as the first of six companies to agree to the key terms on options to lease land in the Mid-West Hydrogen Hub, located in the Oakajee Strategic Industrial Area near Geraldton.
The WA government has committed $55 million so far for the activation of the Oakajee SIA, including $5.5 million to deliver a number of site activation studies which are expected to be finalised in around 12 to 18 months.
The government says the Oakajee SIA will generate significant investment, employment and value production for not only the Mid-West region but the whole of Western Australia.
State Development, Jobs and Trade Minister, Roger Cook, said the Mid-West hydrogen hub is one of 13 SIAs across the State.
“Clean energy and green products made from renewable hydrogen are in demand globally. With its excellent mix of wind and solar resources, WA and in particular the Mid-West region are perfectly placed to meet these demands,” the Minister said.
Australian breakthrough in hydrogen delivery
While hydrogen has been recognised globally as a key component of a clean energy future, one area that has provided a bit of a road block has been working out how to transport commercial scale production of the fuel over meaningful distances.
Australia’s leading natural gas pipeline operator, the APA Group, believes it may have the answer.
New studies conducted by the firm have confirmed the technical feasibility of converting gas pipelines to carry hydrogen, with the APA Group saying Australia’s first potential conversion of a gas transmission pipeline to a pure hydrogen service is now a step closer.
The company recently completed successful laboratory testing of a 43-kilometre section of the Parmelia Gas Pipeline in Western Australia to carry up to 100% hydrogen.
The WA government supported second phase of research, has confirmed that the steel transmission pipeline can technically transport pure or blended hydrogen through the pipeline without reducing the operating pressure.
Exciting milestone
APA Group chief executive officer and managing director, Adam Watson, labelled the Australian first results as an exciting milestone in the nation’s energy transition.
“This research is very encouraging as it suggests there could be potential for our existing gas transmission pipeline network to play an important role in connecting hydrogen production hubs to industrial sites across the nation.”
APA has 15,000 kilometres of gas pipelines inked and adjacent to some of Australia’s best geographical areas for both blue and green hydrogen production.
“This research provides us with the knowledge that can be used to assess the potential future role they could play in providing a hydrogen supply service.”
Market forecasts
ResearchAndMarkets.com’s new “Global Hydrogen Market Analysis Report 2023” found that international hydrogen market demand reached 92 million tonnes in 2022 and is expected to grow at a CAGR of 3.58% up to 2032, when the global market is estimated to reach a volume of 130 million tonnes.
The International Energy Agency (IEA) says that for 2022-2027, the main case forecasts are for approximately 50 GW of renewable capacity to be dedicated to hydrogen production, accounting for two per cent of total renewable capacity growth.
The IEA found that China leads expansion moves, followed by Australia, Chile and the United States. It said that together, these four markets account for roughly two-thirds of dedicated renewable capacity for hydrogen production.
