Australia has committed to achieving net-zero carbon emissions by 2050, a pledge shared by many nations as part of the global effort to combat climate change. To reach this ambitious target, every economic sector must develop sustainable pathways tailored to their unique challenges and opportunities. Among these pathways, decarbonising with hydrogen emerges as a transformative solution, particularly in sectors where other technologies fall short.
The Promise of Green Hydrogen
Green hydrogen, produced through electrolysis powered by renewable energy such as solar and wind, offers a clean and versatile energy carrier. It can serve as a key enabler for decarbonisation across various industries, particularly in hard-to-electrify sectors like maritime shipping, aviation, chemicals, and steel production. For these industries, green hydrogen or its derivatives such as ammonia or methanol is often the only viable solution due to its high energy density and zero-emission profile.
Australia, with its vast resources of renewable energy, is uniquely positioned to become a leader in the green hydrogen economy. The country’s abundant solar and wind potential enables the production of low-cost green hydrogen, making it an attractive option for both domestic use and international export. However, scaling this opportunity requires efficient hydrogen storage solutions that can manage its production, transport, and use effectively.
Key Sectors for Hydrogen Utilisation
The versatility of green hydrogen allows it to support diverse applications across multiple sectors. However, its deployment must be strategically prioritised to maximise impact. According to the International Renewable Energy Agency (IRENA), hydrogen applications should focus on sectors where it is critical and avoid those where alternatives like electrification are more efficient.
- High-Priority Sectors: Industries such as long-haul aviation, international shipping, steelmaking, and ammonia production rely on hydrogen due to their need for high energy density and the lack of suitable alternatives.
- Low-Priority Sectors: Applications like residential heating and urban vehicles are better served by direct electrification, which is typically more efficient and cost-effective.
By concentrating green hydrogen deployment in high-impact areas, its potential for decarbonising with hydrogen can be fully realised.
Hydrogen Market Opportunities
Globally, the hydrogen industry is gaining unprecedented momentum. Large-scale projects, including several with capacities exceeding 200 MW, are under construction worldwide. These facilities are expected to produce thousands of tons of green hydrogen annually, primarily for use in oil refining, industrial processing, and transportation.
In Australia, green hydrogen development is advancing rapidly. The government has invested heavily in hydrogen hubs and large-scale projects, positioning the nation as a future leader in the global hydrogen market. More than 100 hydrogen-related projects are in development, spanning areas like synthetic fuels, mobility solutions, process heating, and export hubs. The establishment of a $2 billion hydrogen fund underscores the country’s commitment to accelerating hydrogen production and its integration into critical industries.
The Role of Hydrogen Storage in Decarbonisation
A critical factor in the widespread adoption of hydrogen is the ability to store it efficiently. Decarbonising with hydrogen requires storage technologies that can handle its production, transportation, and end-use without significant losses.
Challenges in Hydrogen Storage
- Safety Concerns: Hydrogen’s small molecular size makes it prone to leaks, and its flammability poses significant risks. Strict safety regulations and advanced containment technologies are essential.
- Material Durability: Hydrogen can cause embrittlement in metals, compromising the structural integrity of pipelines, tanks, and other infrastructure. Using hydrogen-resistant materials is vital for long-term reliability.
- Space Requirements: Traditional storage solutions like compressed gas cylinders require significant space and are not scalable for industrial needs.
- Permitting and Infrastructure: Large-scale hydrogen storage projects often face lengthy permitting processes and community resistance due to their size and perceived risks.
Innovative Storage Solutions
Advances in hydrogen storage technologies are addressing these challenges. Solutions include:
- Compressed and Liquefied Hydrogen: Compressing hydrogen to high pressures or converting it into liquid form increases its energy density, although liquefaction involves significant energy losses.
- Chemical Storage: Hydrogen can be stored in compounds like ammonia or boron hydrides, offering higher energy density and stability. Boron hydrides, for instance, are emerging as promising candidates due to their lightweight and efficient storage capabilities.
- Vertical Underground Storage: This innovative approach involves storing hydrogen in pressurised vessels housed underground, reducing the surface footprint and enhancing safety. Such systems are modular, scalable, and ideal for industrial-scale storage.
Research and Development Driving Progress
The high cost of green hydrogen production compared to fossil-fuel-based hydrogen remains a barrier to its adoption. Research and development efforts are focused on scaling production, improving efficiency, and lowering costs. Key areas include:
- Electrolyser Technology: Advances in electrolyser design aim to reduce the energy input required for hydrogen production.
- Storage Innovations: Development of hydrogen-resistant materials and efficient storage compounds ensures safer and more cost-effective storage options.
- Policy and Incentives: Government initiatives, such as tax incentives and funding for hydrogen projects, play a crucial role in fostering innovation and market growth.
Australia’s National Hydrogen Roadmap, first released in 2018 and updated in 2023, highlights the importance of scaling hydrogen projects and investing in supply chain development. The roadmap has spurred billions in funding for research, infrastructure, and industry partnerships.
Hydrogen’s Role in Critical Industries
Hydrogen’s potential extends beyond energy production to applications in industries that are essential for achieving global climate goals:
- Steelmaking: Hydrogen can replace coal in steel production, reducing emissions and supporting sustainable construction.
- Maritime and Aviation: Hydrogen-derived fuels like ammonia and synthetic jet fuel provide clean alternatives for international shipping and aviation.
- Ammonia Production: As a key component of fertilisers, ammonia production benefits from a reliable hydrogen supply, reducing the carbon footprint of agriculture.
By integrating hydrogen into these industries, the pathway to decarbonising with hydrogen becomes clearer and more achievable.
The Path Forward
For Australia to fully capitalise on its green hydrogen potential, several steps are necessary:
- Enhance Research and Development: Investing in hydrogen production and storage technologies will drive innovation and reduce costs.
- Strengthen Industry Partnerships: Collaboration between government, academia, and industry can accelerate the deployment of hydrogen solutions.
- Expand Infrastructure: Building hydrogen hubs and distribution networks will support domestic use and international export.
- Focus on High-Impact Sectors: Prioritising applications in critical industries ensures maximum environmental and economic benefits.
- Leverage Policy Support: Continued government funding and regulatory frameworks are essential for scaling hydrogen projects and attracting investment.
Conclusion
Australia’s abundant renewable energy resources and commitment to sustainability position it as a global leader in decarbonising with hydrogen. By overcoming challenges in production, storage, and infrastructure, the nation can unlock the full potential of green hydrogen as a clean and versatile energy solution.
The road to a hydrogen-powered future requires innovation, collaboration, and strategic prioritisation. With the right investments and policies in place, green hydrogen can transform industries, reduce emissions, and play a pivotal role in achieving net-zero targets worldwide.