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NSW plan seen as a ‘leap forward’ for hydrogen

“They currently have high production costs, suffer from limited active infrastructure, can cause large energy losses from production to consumption and in many cases need to be handled more carefully than conventional liquid fuels.”

Dozens of industry representatives from Australian hydrogen developers such as Ampole, Woodside Petroleum, Origin Energy and Vesformers said it would be important to plan, fund and target investments in electrolyzers, pipelines and other infrastructure needed to boost the industry.

Fiona Simon, Chief Executive Officer of the Australian Hydrogen Council, said:

“Such plans and funding mean that Australia should not miss the boat on international occasions and instead be well positioned as a leading manufacturer and user of hydrogen in Australia and globally.”

The NSW plan aims to sharply reduce the price of green hydrogen from $ 8.60 to $ 2.80 per kilogram by the end of the decade. However, the target cost is higher than the federal government’s stated goal of obtaining less than $ 2 per kilogram of green hydrogen, which is believed to be competitive.

Incentives included in the NSW Hydrogen Plan include a 90 percent waiver on electricity grid tariffs for green hydrogen manufacturers connected to parts of the grid with additional capacity.

Transgride, who manages and operates NSWD’s coal-fired transmission network, said green energy could be a “power” by producing hydrogen at a lower cost globally if the nation began working to achieve the desired goal of temperature control in the Paris Agreement. Rises to 1.5 degrees.

“Renewable energy resources will enable Australia to produce the world’s cheapest green hydrogen, which is expected to drop to $ 1 / kg by 2050 at major hydrogen production sites along Australia’s southern and eastern coasts,” said Kasia Kulba, head of network design and operations at Transgrid.

Bus Mountain, director of the Victoria Energy Policy Center at the University of Victoria, said hydrogen could ultimately help replace some fossil fuel-based energy, export earnings and jobs. But he warned that hydrogen technology was in its infancy, and it was not yet clear what potential applications would eventually be commercially successful.

The role of hydrogen fuel cells in cars may have already been replaced by rapid advances in battery technology, but hydrogen can play a role in shipping as well as in the manufacture of steel for fertilizer, Professor Mountain said.

Rob Wheels, managing director of the Australian Gas Pipeline APA Group, said it was “absolutely clear” that Australia and the NSW had natural competitive advantages over hydrogen.

As the science of economic challenges and the creation of a clean hydrogen economy continues to evolve, Australia is one step ahead of wind and solar energy in producing renewable ‘green’ hydrogen and powering an existing pipeline network. Transporting hydrogen for domestic use or export, ”Mr. Wheels said.

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