Cost-competitive green hydrogen on near horizon
The Clean Energy Finance Corporation commissioned the Australian Hydrogen Market Study, which was prepared by global energy analysts Advisian (part of the Worley Group).
It looked into the competitiveness of green hydrogen across 25 Australian industry sectors over three timeframes (2020, 2030 and 2050) compared with incumbent energy technologies in Australia .
CEFC said the analysis showed how parallel advances in production and distribution costs, as well as ongoing technology evolution, would accelerate the commercial attractiveness of green hydrogen across key areas of the economy.
While hydrogen was closest to achieving commercial parity as an alternative to petroleum products, displacing natural gas provided a potential transitional use to reach scale at pace, the report showed.
“There is enormous excitement around the potential to create green hydrogen to deliver a cleaner and more enduring energy source. As with any new technology, costs will decline over time,” CEFC chief executive officer Ian Learmonth said.
“The purpose of this analysis is to give industry participants and investors an understanding of the potential economics for the uses of hydrogen in the Australian context, including potential early adopters.
“Our experience in developing the solar and wind sectors shows that prices decline rapidly as a new industry reaches scale and technical proficiency. It is encouraging to see a similar trajectory for the exciting hydrogen sector.”
The CEFC has a major focus on hydrogen, as part of its role to increase investment in new technologies to drive down emissions.
Up to $300 million is available under the Advancing Hydrogen Fund to help the Australian hydrogen industry grow.