Hydrogen energy receives enormous attention as a potential solution to decarbonization challenges. Australian governments and industry have invested heavily in hydrogen development. However, technical and economic realities are more complex than promotional materials suggest.

Production Methods

Most hydrogen currently comes from natural gas reformation, producing substantial CO2 emissions. This “grey hydrogen” isn’t a climate solution without carbon capture.

“Green hydrogen” produced by water electrolysis using renewable electricity is genuinely low-carbon. This is the focus of Australian research and development efforts.

Electrolysis technology exists but remains expensive. Electrolyzer costs must fall substantially for green hydrogen to compete economically with fossil alternatives.

University of New South Wales researchers are developing advanced electrolyzer designs with improved efficiency. Laboratory results show promise, but scaling to industrial production faces challenges.

Alternative production methods like photoelectrochemical water splitting or biological hydrogen production remain experimental. These might eventually offer advantages but require fundamental breakthroughs.

Storage and Transport

Hydrogen is the lightest element and diffuses easily. Storing and transporting it requires compression, liquefaction, or chemical conversion, all adding cost and energy consumption.

Compression to 700 bar, common for hydrogen vehicles, requires robust tanks and consumes energy. Compressed hydrogen storage density remains lower than liquid fuels.

Liquefaction requires cooling to -253°C, consuming about 30% of the hydrogen’s energy content. This makes sense only for specific applications where density advantages justify the energy cost.

Converting hydrogen to ammonia or other carriers enables easier transport but requires energy for conversion and back-conversion at destination. Efficiency losses add up through the chain.

Australian research into metal hydrides and chemical storage materials aims to improve storage density and safety. Monash University’s work on metal-organic frameworks shows laboratory potential but hasn’t reached practical implementation.

Safety Considerations

Hydrogen is highly flammable and burns with an invisible flame. Safety systems are well-understood from industrial use, but public acceptance of hydrogen in residential or vehicle applications faces perception challenges.

Embrittlement of metals exposed to high-pressure hydrogen is a materials engineering concern. Existing natural gas pipelines can’t necessarily be repurposed for hydrogen without modification or replacement.

Research at the University of Queensland examines materials compatibility with hydrogen. Findings inform standards development and infrastructure design.

Applications and Use Cases

Hydrogen suits some applications better than others. Uses requiring high-temperature heat like steel and cement production are promising hydrogen markets.

Heavy transport including shipping and aviation might use hydrogen or hydrogen-derived fuels like ammonia. Battery weight limitations make hydrogen more attractive for long-range heavy vehicles.

Light-duty vehicles have largely moved toward battery electric technology. Hydrogen fuel cell vehicles remain a niche despite decades of development. Battery improvements have narrowed the case for hydrogen in this application.

Grid energy storage using hydrogen faces economic challenges. Round-trip efficiency of hydrogen storage via electrolysis and fuel cells is around 40%, compared to 85-90% for batteries. This makes hydrogen storage expensive per useful energy output.

Economic Realities

Green hydrogen currently costs $5-8 per kilogram to produce, compared to $1-2 for grey hydrogen from natural gas. This cost gap must close for hydrogen to compete without subsidies or carbon pricing.

Cost projections suggest green hydrogen could reach $2-3/kg by 2030 with technological improvements and scale. However, these projections assume ambitious deployment and innovation rates that may not materialize.

The Australian government’s hydrogen strategy includes substantial subsidies and loan guarantees. Without this support, most proposed projects lack commercial viability.

International competition is intense. Multiple countries are pursuing hydrogen strategies with government backing. Australia’s advantages in renewable energy resources compete against closer proximity to markets and existing industrial infrastructure in other countries.

Export Opportunities

Australia is positioning to export hydrogen or hydrogen carriers to Asia. Japan and South Korea have stated intentions to import hydrogen for energy security and decarbonization.

However, export economics face challenges. Transport costs add substantially to delivered price. Customers could instead produce hydrogen domestically or import from closer suppliers.

Proposed Australian hydrogen export projects involve billions in infrastructure investment. Financial close on these projects has been delayed as sponsors reassess economics.

Some projects are pivoting from hydrogen export to domestic industrial use where transport costs don’t apply. This is more economically attractive but represents a much smaller market.

Industrial Hydrogen Use

Current industrial hydrogen demand in Australia includes oil refining and chemical production. These established markets provide near-term opportunities for green hydrogen without requiring new infrastructure or user adoption.

However, industrial users won’t pay green premiums without regulatory requirements or carbon pricing making grey hydrogen more expensive. Policy support is essential for displacing existing hydrogen production.

Research at CSIRO examines integrating hydrogen into industrial processes. Some applications can use hydrogen directly; others require adaptation of process equipment.

Infrastructure Requirements

A hydrogen economy requires substantial new infrastructure including production facilities, pipelines or transport systems, and refueling or end-use equipment.

Natural gas infrastructure provides a starting point but can’t simply be converted. Blending hydrogen into natural gas networks is possible at low concentrations but doesn’t address large-scale hydrogen use.

Dedicated hydrogen pipelines would be expensive to build. For distances beyond a few hundred kilometers, shipping hydrogen as ammonia or other carriers might be more economical.

Refueling infrastructure for hydrogen vehicles remains minimal in Australia. Without vehicles to serve, infrastructure won’t be built. Without infrastructure, vehicles won’t be adopted. Breaking this chicken-and-egg problem requires coordinated investment.

Research Priorities

Australian hydrogen research focuses on production efficiency, storage materials, fuel cell development, and system integration.

Materials research addresses catalyst development for electrolyzers and fuel cells. Reducing reliance on expensive platinum-group metals would improve economics substantially.

Curtin University researchers are investigating earth-abundant catalysts for water splitting. Laboratory results are promising but don’t yet match platinum performance.

System optimization research examines how hydrogen production integrates with variable renewable energy. Operational strategies that maximize capacity utilization while matching renewable availability are economically important.

Competing Technologies

Hydrogen isn’t the only decarbonization pathway. Direct electrification using batteries, improved efficiency, and sustainable biofuels all compete in different applications.

For applications where direct electrification works, it’s typically more efficient than hydrogen routes involving multiple conversion steps. Hydrogen makes most sense where electrification isn’t practical.

Synthetic fuels produced using hydrogen and captured CO2 might suit aviation better than direct hydrogen use. Research into these pathways is expanding internationally.

The question isn’t whether hydrogen is good or bad, but where it offers the best solution compared to alternatives. This analysis is application-specific and economics-dependent.

Skills and Workforce

Hydrogen industry development requires engineers, technicians, and skilled workers. Current supply is limited as hydrogen has been a niche industrial gas rather than major energy vector.

Universities have expanded hydrogen-related teaching, but production of qualified specialists takes years. Industry growth must match workforce development pace.

Safety training is particularly important given hydrogen’s properties. Existing oil and gas industry workforce has transferable skills but needs hydrogen-specific training.

Policy and Regulation

Hydrogen development depends heavily on policy support given current economic challenges. Carbon pricing, renewable energy subsidies, and direct hydrogen production incentives all affect competitiveness.

Regulatory frameworks for hydrogen systems are evolving. Safety standards, transport regulations, and grid integration rules need development.

International coordination matters for hydrogen trade. Standards for hydrogen quality, transport, and measurement need harmonization between trading partners.

Honest Assessment

Hydrogen will likely play some role in future energy systems, particularly for industrial heat and potentially heavy transport. However, it won’t replace all fossil fuel uses.

The scale and timeline for hydrogen adoption remain highly uncertain. Ambitious targets set by governments and industry may not be achieved if economics don’t improve sufficiently.

Australian hydrogen research is advancing technical understanding and training skilled workers. However, commercial viability of most hydrogen applications without substantial policy support remains elusive.

Distinguishing between hydrogen’s genuine potential and promotional hype from companies seeking subsidies or investment requires critical evaluation. Hydrogen is a useful tool for specific applications, not a universal energy solution. Getting expectations aligned with technical and economic realities would enable more effective policy and investment decisions.