Australia is in a strong position to take advantage of the growing hydrogen export market, according to a new report released by the Australian Renewable Energy Agency (ARENA).
The report, which is titled ‘Opportunities for Australia from Hydrogen Exports’, was prepared for ARENA by ACIL Allen Consulting and highlights that over the course of the next decade, Australia has the potential to take the lead in the hydrogen export market as the world starts to shift towards favouring green hydrogen.
“Hydrogen has long been talked about as a potential energy source. Hydrogen produces no carbon emissions when burned – only water vapour and heat, and produces more energy per kilogram than natural gas,” commented ARENA’s Chief Executive Officer, Ivor Frischknecht.
Green or clean hydrogen can be produced via electrolysis from renewable electricity or can be produced using fossil fuels with the emissions then captured and sequestered. Hydrogen could then be exported by liquefying it, or by converting it to a carrier such as ammonia.
“Australia has a golden opportunity to become a major exporter of hydrogen, as other countries look to transition to low carbon energy sources,” Mr Frischknecht said, “if Australia can tap into our abundant wind and solar resources to produce hydrogen using renewable energy, we could export hydrogen at large scale.”
The report found that with the right conditions, Australian hydrogen exports could contribute $1.7 billion per annum to the economy and provide approximately 2,800 jobs by 2030.
Several potential importers of hydrogen were examined within the report, but China, Japan, Republic of Korea and Singapore were identified as the top prospective markets for Australian hydrogen by the year 2025.
“While countries like Japan and Korea look to decrease emissions and increase renewable options, they are looking to import hydrogen at large scale but there are as yet no exporters,” Mr Frischknecht explained.
The report also highlights that Australia’s potential exports to Asia stand in a promising competitive position partially due to our location, excellent renewable energy resources, well-established energy trading relationships and experience in large-scale energy infrastructure construction. But we won’t be alone in our efforts, the report also detailed that other countries such as Norway, Iceland, the USA, various Middle Eastern or North African countries and Brunei are likely to compete with Australia to supply hydrogen for export.
“The sector is still in its infancy which places Australia in a prime position to utilise its abundant renewable resources, as well as proven track record of exporting energy and strong relationships with energy importers to become a major player in exporting hydrogen to Asia and around the globe,” Mr Frischknecht said.
Lastly, the report found that most of the jobs associated with any future hydrogen exports would be located where hydrogen production or export facilities are built, with the facilities likely to be located close to the supply of renewable energy. Hence, it is likely that our hydrogen exports would benefit regional communities, traditional owners of the land, and the broader Australian community through the direct employment associated with hydrogen production facilities.
The full report is free to download and can be found here.