Page 11 - FSUOGM Week 39

FSUOGM NRG FSUOGM

An electrolyser made by UK-based ITM Power. Image: ITM Power

Counter point Europe at the forefront
Australia’s leading gas industry bodies released Europe is at the forefront of hydrogen develop-
a joint report on September 25 that highlighted ment. The European Commission published its
the economic and climate benefits of using long-awaited strategy for hydrogen in July, in
hydrogen within the existing natural gas grid. which it supports the fuel as a means of decar-
The major conclusion of the report, “Gas bonising economic areas which renewables
Vision 2050: Delivering a Clean Energy Future”, alone cannot reach.
is that net-zero emissions can be reached with The strategy’s priority is the large-scale
hydrogen at half the cost of full electrification. deployment of carbon-free green hydrogen, pro-
Energy Networks Australia’s acting CEO, duced from water using renewable power. But it
Tamatha Smith, said: “Policy settings aimed also accepts that in the short to medium term,
at reducing emissions should recognise that some gas-based hydrogen will be needed as long
continuing to use gas infrastructure is the low- as it is decarbonised using CCS. This so-called
est-cost option to reach net-zero emissions from blue hydrogen will help establish a sufficient
the energy sector by 2050.” market for the fuel, ready for when green hydro-
Australian Petroleum Production and Explo- gen becomes cheap enough to compete.
ration Association (APPEA) CEO Andrew Green hydrogen is produced at electrolysers.
McConville said: “The report highlights the The EC aims to have at least 6 GW of hydrogen
vital role of natural gas in emissions reduction electrolyser capacity up and running by 2024,
through fuel switching from more emissions-in- capable of producing 1mn tonnes per year (tpy)
tensive fuels to gas. Gas is also one of Australia’s of the fuel. It wants to install a further 40 GW by
most important exports, contributing AUD47bn 2030. The market is to be developed using both
[$33.04bn] to our economy in 2019-20.” demand- and supply-side subsidies and other
Canberra released its National Hydrogen kinds of support.
Strategy in November 2019, making clear its There has been a mixed response to the
goals around developing a leading hydrogen EC’s strategy from the gas industry. Some have
industry. Since then the government has taken praised the EU executive for allowing some
several important steps forward. room for blue hydrogen. However, others have
Australia agreed in early September to con- said a more level playing field between blue and
duct a joint study with Germany on the devel- green hydrogen is needed to ensure that the best
opment of a hydrogen supply chain between the technologies are chosen.
two countries. Australian Trade Minister Simon Several national governments in Europe
Birmingham described the agreement at the have also announced hydrogen strategies. Some
time as “critical” to developing “Australia’s future like Germany and Portugal have adopted a zero
as a powerhouse in clean energy exports”. policy on blue hydrogen, denying any of the
The agreement follows a similar deal signed at required incentives needed to develop it. Others
the start of the year with Japan, and another with like Norway are in favour of any kind of hydro-
South Korea in November 2019. gen as long as it is low-carbon.
Australia, which last year took the global top Generally, hydrogen is seen as most feasible
spot in terms on LNG exports, needs to future- in countries with extensive gas grids that can
proof its gas industry amid an increasing push by be repurposed for its transport, such as Ger-
the world’s biggest importers to embrace alter- many, Italy and the Netherlands. Germany is
native fuels. striving to build 5 GW of hydrogen electro-
lyser capacity by 2030 and double this amount
If you’d like to read more about the key events shaping by 2040. It not only wants to create a market
Asia’s oil and gas sector, then please click here for for the fuel but also become a leading supplier
NewsBase’s AsianOil Monitor. of hydrogen technologies.

Week 39 30•September•2020 www. NEWSBASE .com P11