Green Hydrogen

Hydrogen is a strategic resource for the future, in terms of environment and economy. The use of clean hydrogen as an energy carrier would allow dramatic carbon emissions reduction, in line with global targets for climate change mitigation.

Australia possesses a wealth of geographical resources to take full advantage of the emerging technology and become a key producer and exporter. The Australian government has identified that the hydrogen export market could amount to $1.7 billion by 2030 for Australia and could provide 2,800 jobs.¹

Hydrogen is mainly produced in 3 ways: electrolysis that requires an electricity input, coal gasification or steam methane reforming. Each pathway has the opportunity to become less carbon-intense, notably by integrating carbon capture utilisation and storage (CCUS). However, electrolysis is the only process that could qualify as zero-carbon, if powered by a renewable energy source, such as solar or wind.

Water electrolysers are not a new technology. Despite being mature, they remain expensive and energy-intensive. Water electrolysis only represented 0.03% of global hydrogen production in 2020.² This share needs to increase to 60% to meet net-zero-emission targets, as identified by the International Energy Agency.²

Solar photovoltaic (PV) has become one of the most economical electricity sources over the last few decades. Forecasted additional cost reduction in PV, coupled with cost reduction in electrolysers allow for a promising outlook for solar hydrogen.