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Australia bets on hydrogen

The Australian government is looking to future proof the country’s gas
industry by backing the development of a world-class hydrogen sector

COMMENTARY ASIA’S major importers of liquefied natural gas reduction fund, AUD1.4bn (984mn) for
(LNG) have begun looking to hydrogen as a the Australian Renewable Energy Agency
cleaner source of energy as they seek to cut down (ARENA) and AUD1bn ($702.9mn) for
WHAT: on their carbon emissions. the Australian Research Council (ARC).
Australia has allocated The Japanese government declared its com- Additional funding will also go towards
billions in funding mitment to a hydrogen-fuelled future in 2017, CSIRO-managed grants programmes as well
for low-emissions while both South Korea and China have made as co-operative research centres.
technologies, including similar commitments. As major hydrocarbon Taylor advertised the government’s com-
hydrogen. consumers seek out new means of reducing mitment to “clean hydrogen”, rather than sim-
greenhouse gas (GHG) emissions, exporters ply green hydrogen. This leaves the door open
WHY: need to start thinking about the future. for the domestic gas industry to invest in car-
LNG buyers throughout Australia has seen its opportunity to steal a bon capture and storage (CCS) to future-proof
Asia are beginning march on its gas export rivals in the Middle East, blue hydrogen operations. The government has
to ramp up their North America and Russia, aiming to future- not set a target for its green and blue hydrogen
commitment to the clean proof its gas industry by developing a world- mix yet, with the minister telling the country’s
fuel. class hydrogen export sector. national broadcaster ABC on September 23 that
The government has earmarked AUD18bn Canberra expects the mix to move “over time”.
WHAT NEXT: ($12.65bn) of funding over the next decade He said: “We’re already major hydrogen pro-
Australia has left the door for a portfolio of low-emissions technologies, ducer. We use hydrogen to produce fertilisers
open to blue hydrogen including “clean” hydrogen. Canberra’s focus and plastics and other materials now. But there
paired with CCS, but the on developing hydrogen is welcome news for is potential, over time, to migrate towards green
technology still needs to the Australian gas industry, which has touted hydrogen and to use [CCS] to decarbonise the
prove itself. the economic decarbonisation potential of process of producing hydrogen.”
the cleaner fuel at a fraction of the cost of full Canberra’s balanced approach to the green-
electrification. blue debate is good news for the country’s gas
players, which have begun arguing against full
Hydrogen funding electrification of the economy in order to reach
Australian Energy Minister Angus Taylor net-zero emissions by 2050.
unveiled the first annual statement of the
government’s technology roadmap on Sep- Counter point
tember 21. Australia’s leading gas industry bodies released
In his statement the National Press Club, a joint report on September 25 that highlighted
the minister set aside AUD13bn ($9.14bn) the economic and climate benefits of using
in funding for the Clean Energy Finance hydrogen within the existing natural gas grid.
Corp., AUD2.9bn ($2.04bn) for an emissions The major conclusion of the report, “Gas

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