Australia is moving fast on the clean hydrogen front. The state of New South Wales recently released its hydrogen strategy, while oil and gas firm Woodside has announced a green hydrogen hub in Perth. Six firms are also carrying out feasibility studies for a hydrogen project in Queensland.

Hydrogen Economist interviewed Sylvie Cornot-Gandolphe, the author of a recent report titled Australia at the forefront of developing a huge hydrogen export industry, about developments in the country.

Cornot-Gandolphe is a research associate with Cedigaz, the not-for-profit gas organisation based near Paris, and is president of SCG Consulting. 

Fast out of the gate

“Australia has a rapidly growing pipeline of clean hydrogen projects, and the world’s largest pipeline of export projects,” says Cornot-Gandolphe. “And the nation is emerging as a key player in the global hydrogen supply chain, taking the lead, together with Europe, on renewable hydrogen developments around the globe.”

“Australia is emerging as a key player in the global hydrogen supply chain” Cornot-Gandolphe, Cedigaz

A total of 88 green and blue hydrogen projects—ranging from pilots to commercial scale—had been proposed as of July, with almost half of the projects planning to export some, if not all, of their production. Electrolysis capacity of utility-scale green hydrogen projects totals 65GW, almost a quarter of the proposed global capacity of 280GW.

“Assuming everything goes well, larger-scale projects should begin ramping up in the second half of this decade, and we should begin to see significant clean hydrogen exports from Australia thereafter,” says Cornot-Gandolphe.

Natural advantages

The foundation for the rapid development of Australia’s nascent clean hydrogen industry is its natural advantages, including good natural resources for the production of both green and blue hydrogen, and its location near high-potential hydrogen import markets such as Singapore, Japan and South Korea, according to Cornot-Gandolphe.

A 2019 report by government agency Geoscience Australia, discussed in her report, identified 873,000km² of land suitable for green hydrogen production, with almost a third of it rated as having “high potential”. Most of this is in coastal areas, due to the requirement of water for electrolysers and the need for electrical and port infrastructure. Australia has the highest solar radiation per metre of any continent on the planet and—in the southern parts of the country—some of the world’s best wind resources.

On the blue hydrogen front, Geoscience Australia identified extensive coal and gas resources that could be used in conjunction with carbon capture and storage to produce low-carbon hydrogen. Australia also has very large CO₂ storage potential, estimated at 220-410Gt.

The LNG advantage

Australia’s rapid rise to become one of the world’s largest LNG exporters has also contributed to the early development of the country’s clean hydrogen industry, according to Cornot-Gandolphe. Experience developing major energy projects, a strong reputation as an exporter of energy, and established commercial relations with potential hydrogen importers has helped progress.

“Australia’s experience developing its LNG export industry has taught government and companies how to work together relatively seamlessly to establish government strategies and policies, including required export policies, for the development of new industries such as clean hydrogen, and the steps needed to move individual projects quickly forward as well,” says Cornot-Gandolphe.

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Author: Vincent Lauerman