Page 5 - AsiaElec Week 35

AsiaElec COMMENTARY AsiaElec

A$2.90 per kg. Decarbonisation
These figures compare well with existing cost The report confirms analysis in July by IHS
predictions and estimates, especially those laid Markit, which found that hydrogen produced by
out in CSIRO’s National Hydrogen Roadmap green electricity could be cheaper than hydrogen
published back in 2018. These later figures produced by burning natural gas by 2030.
assume a lower capital cost for electrolysers as “Costs for producing green hydrogen have
compared to the Commonwealth Scientific and fallen 50% since 2015 and could be reduced by
Industrial Research Organisation’s (CSIRO) an additional 30% by 2025 due to the benefits of
2018 projections. The authors conclude that increased scale and more standardised manufac-
hydrogen production cost estimates for 2030 are turing, among other factors,” said Simon Blakey,
between A$1.89 per kg and A$3.71 per kg. IHS Markit senior advisor, Global Gas.
The authors conclude by explaining that “the Investment in so-called “power-to-x” pro-
production of green hydrogen at costs of below jects – of which hydrogen makes up the large
A$3 per kg is likely to be possible, and a reduc- majority – is growing rapidly. Investment is
tion of production costs over the next decade to anticipated to expand from around $30mn in
approach A$2 per kg is plausible.” 2019 to more than $700mn in 2023. The authors
Moreover, “Australia is well placed to achieve Economies of scale are a primary driver for
low-cost green hydrogen production due to green hydrogen’s growing cost competitiveness. conclude that
its low-cost renewable energy supply and the The average size for power-to-x projects
potential to achieve large economies of scale.” scheduled for 2023 is 100 MW – ten times hydrogen
The report comes as the Australian gov- the capacity of the largest project in operation production
ernment has raised funding and support for today – according to the IHS Markit Power-to-X
hydrogen. National Energy Resources Australia Tracker, which tracks hydrogen projects around cost estimates
(NERA), a government body, has launched the the world.
Regional Hydrogen Technology Clusters Seed And back in June 2019, the International for 2030 are
Funding Programme, which aims to unlock Energy Agency (IEA) said that green hydrogen
Australia’s potential to create a globally compet- was a key accelerator of the energy transition between A$1.89
itive hydrogen industry. and a major tool in decarbonising the world per kg to A$3.71
The programme will provide seed funding of economy.
up to A$100,000 ($73,100) per successful appli- “Hydrogen can help overcome many difficult per kg
cant to develop a hydrogen technology cluster. energy challenges. It can decarbonise hard-to-
The creation of hydrogen technology hubs abate-sectors like steel, chemicals, trucks, ships
was a recommendation of the National Hydro- and planes. Hydrogen can also enhance energy
gen Strategy, developed by chief scientist Alan security by diversifying the fuel mix and provid-
Finkel, and endorsed by federal and state energy ing flexibility to balance grids,” said Fatih Birol,
ministers through the former COAG Energy Executive Director of the International Energy
Council. Agency (IEA).
The National Hydrogen Strategy found that The IEA noted that in 2018, green hydrogen
an Australian hydrogen industry could grow to was still more expensive than fossil fuel-sourced
contribute as much as A$11bn ($8.05bn) to the hydrogen, with IEA pricing green hydrogen at
Australian economy by 2050, as well as creating $3-7.5 per kg, compared with $0.9-3.2 per kg for
7,600 new clean energy jobs. gas-derived hydrogen.™

Week 35 02•September•2020 www. NEWSBASE .com P5