Wind energy in Australia. This energy type is one of Australia's main sources of … Contact online >>
Wind energy in Australia. This energy type is one of Australia''s main sources of
Solar power in Australia. Solar PV generated approximately 10 per cent of
Alongside the Clean Energy Finance Corporation, we published the Australian
Bioenergy in Australia. Bioenergy has scope to expand as an energy source in
On behalf of the Australian Government, the Australian Renewable Energy Agency
The utilisation of hydrogen is a key pathway for decarbonising Australia’s economy, particularly for hard-to-abate sectors like iron, steel, alumina, fertilizers, heavy road freight and long-haul transport (e.g. aviation and shipping). These industries are currently, heavily reliant on fossil fuels and cannot be easily electrified. In addition, for industries fossil fuels are an integral part of the manufacturing process (e.g. iron production). Today, entire new production processes using hydrogen are being developed to meet future emission standards.
In February 2023, the Energy and Climate Change Ministerial Council agreed to a Review of the 2019 National Hydrogen Strategy (Commonwealth of Australia, 2019) to ensure it positions Australia on a path to be a global hydrogen leader by 2030 on both an export basis and for the decarbonisation of Australian industries. The revised National Hydrogen Strategy will be released in 2024.
While hydrogen produced from renewable energy appears to have cost advantages in the long-term (IEA, 2023a), the production of hydrogen using fossil fuels with substantial carbon capture could be lower cost in the near-term. There are a small number of hydrogen projects using fossil fuels with CCS under development in Australia and these projects can provide additional assurance to buyers prioritising energy security in the near-term.
There are two primary methods currently available for producing clean hydrogen:
In 2022, global hydrogen usage continued to grow, reaching 95Mt (IEA, 2023b). The majority of all hydrogen produced globally is derived from fossil fuels, without carbon capture and storage, and is responsible for the emission of at least 920Mt of CO2 per year (IEA, 2023b). Current global production of clean hydrogen is minor (0.6Mt), accounting for less than 1% of all hydrogen production in 2022 (IEA, 2023b).
Current policy settings of governments around the world call for clean hydrogen production to reach 27–35Mt in 2030, while achieving Net Zero Emissions by 2050 requires approximately 80Mt of clean hydrogen production in 2030. In 2023, the production capacity of all announced clean hydrogen projects globally amount to 38Mt in 2030, a year-on-year increase of 50% (IEA, 2023b). Some 3.3Mt of additional clean hydrogen production capacity globally is currently under construction or reached Final Investment Decision (IEA, 2023b).
Geoscience Australia provides open access to data sets and digital tools to assist governments and industry to assess Australia’s hydrogen potential. One of these tools is the Hydrogen Economic Fairways Tool (HEFT). Released in 2021, it helps policymakers and investors make decisions about the location of new infrastructure and the development of hydrogen hubs. The tool conducts detailed geospatial-economic analysis of future large-scale hydrogen projects and considers hydrogen produced by renewable energy and from fossil fuels with CCS. The HEFT tool was recently expanded to model the feasibility of Green Steel in Australia.
Australia is one of the most prospective countries for natural hydrogen. The extent of this geological resource is not well understood, but there are reports of high concentrations of hydrogen in gas samples in Australia (Boreham et al., 2021). Interest in natural hydrogen is increasing and some Australian state jurisdictions have started to amend their petroleum exploration licences to include natural hydrogen.
AEMO (Australian Energy Market Operator), 2023. NEM Generation Information October 2023. (Last accessed June 2024)
Boreham C.J., Edwards D.S., Czado K., Rollet N., Wang L., van der Wielen S., Champion D., Blewett R., Feitz A., Henson P.A. 2021. Hydrogen in Australian natural gas: occurrences, sources and resources. The APPEA Journal 61, 163-191.
Bradshaw M., Rees S., Wang L., Szczepaniak M., Cook W., Voegeli S., Boreham C., Wainman C., Wong S., Southby C., Feitz A. 2023. Australian salt basins – options for underground hydrogen storage.The APPEA Journal63, 285-304.
Central Petroleum Limited, 2023. Resource Estimates for Three Sub-salt Exploration Wells (Last accessed June 2024)
Commonwealth of Australia 2019. Australia’s National Hydrogen Strategy (Last accessed June 2024).
CSIRO (Commonwealth Scientific and Industrial Research Organisation), 2024. HyResource Projects spreadsheet, updates 11 May 2024. (Last accessed 17 May 2024)
DCCEEW (Department of Climate Change, Energy, the Environment and Water), 2022. State of Hydrogen, 2022 (Last accessed June 2024)
DCCEEW (Department of Climate Change, Energy, the Environment and Water), 2023a. Safeguard Mechanism. (Last accessed June 2024).
DCCEEW (Department of Climate Change, Energy, the Environment and Water), 2023b. HyResource - Funding. (Last accessed January 2024).
DISR (Department of Industry, Science and Resources), 2023. Resources and Energy Major Projects Report December 2023. (Last accessed January 2024).
Egerer, J., Grimm, V., Niazmand,K. and Runge, P. 2023. The economics of global green ammonia trade – “Shipping Australian wind and sunshine to Germany”. Applied Energy, Volume 334, 120662
HESC 2023. The world-first Hydrogen Energy Supply Chain (HESC) Project (Last accessed June 2024).
IEA (International Energy Agency) 2019. Ammonia Technology Roadmap Towards more sustainable nitrogen fertiliser production. IEA, Paris. (Last accessed June 2024)
IEA (International Energy Agency) 2023a. Energy systems overview tracking report: Hydrogen. IEA, Paris. (Last accessed June 2024)
IEA (International Energy Agency) 2023b. Global Hydrogen Review 2023. IEA, Paris. (Last accessed June 2024)
Rees, S., Wang, L., Dewhurst, D., Feitz, A. 2023. Feasibility of underground hydrogen storage in a salt cavern in the Adavale Basin. Geoscience Australia, Canberra. (Last accessed June 2024)
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