Australia must launch a A$1bn ($0.72bn) hydrogen fund targeted at decarbonising hard-to-abate industrial sectors and A$565mn funding to trial hydrogen applications in the transport sector, according to a report from industry association the Australian Hydrogen Council.

The report—entitled Unlocking Australia’s Hydrogen Opportunity—notes that the nation has low gas prices and geologic storage suitable for blue hydrogen development and good renewable resources suitable for green hydrogen production.

“In the short to medium term, it is worth prioritising funding for applications that are more dependent on clean hydrogen for decarbonisation and have a medium economic gap to commerciality,” says the report.

A$1bn - Size of hydrogen fund required

“If we can close the economic gap…for applications like ammonia production and heavy transport, we start to see the new hydrogen domestic industry take shape.”

The Australian Hydrogen Council says the government could create even larger sources of demand by becoming a centre of low-carbon steel production and blending hydrogen into gas networks.

Detailed plan

The report outlines a detailed plan to develop industrial and port facilities, new production processes for mineral and chemical companies, and new vehicle technologies for transport and logistics companies.

“Refuelling stations will be required to supply hydrogen for vehicles. Households and businesses can convert from gas and oil-based fuels to hydrogen or electricity for heating and mobility,” it adds.

The Australian Hydrogen Council urges the government to establish a body to monitor and oversee the transition to net zero—similar to the UK’s climate change committee—with a budget of A$10mn/yr.

It also recommends the government set a target of blending 10pc hydrogen by volume in the natural gas network by 2030. The government should also start trialling hydrogen fuel cell vehicles for heavy-duty transport “as soon as possible”, in addition to setting emissions standards for all vehicles and a target for 50pc of commercial fleet vehicles to be zero-emissions by 2030.

Earlier this year, the Australian government pledged A$565.8mn towards clean hydrogen. And a number of state-funded hydrogen projects are already underway, including a green hydrogen project in Queensland.

Australia’s Low Emissions Technology Statement—released in September 2020—aims to invest A$18bn in the next decade in five priority areas including clean hydrogen.

However, the government has not yet set a net zero target. And its climate policy and contributions to the Paris Agreement are rated ‘highly insufficient’ by non-governmental organisation Climate Action Tracker.

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Author: Tom Young