From Concept to Operation: Navigating the Path of Green Hydrogen Projects and Decarbonising Australia's Heavy Haulage Sector

Executive Summary

The development of a major green hydrogen project in Australia is a complex, multi-staged process that spans from conceptualisation to full operational status. This article outlines the key stages involved, including concept design, feasibility studies, Front-End Engineering Design (FEED), securing financing, project execution, and operation.

Each stage presents its own set of challenges, ranging from regulatory hurdles to financial viability, and technical complexities. Strategies to mitigate these challenges are provided, offering insights on how to navigate the pathway to project success.

Additionally, the article explores the specific application of green hydrogen in decarbonising Australia's heavy haulage transport sector. With a focus on Hydrogen Internal Combustion Engine (H2ICE) trucks, the discussion illustrates why H2ICE technology is a vital, practical step toward achieving net-zero emissions in long-distance and heavy-duty transport. H2ICE trucks offer a quicker transition pathway while hydrogen fuel cell vehicles are still being scaled.

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Key Stages of a Green Hydrogen Project in Australia

1. Concept Development

• Activities: At the initial stage, the project concept is defined, which includes determining the project scope, location, and potential hydrogen production methods (e.g., electrolysis powered by renewable energy). Early discussions with stakeholders, including government bodies, are initiated.
• Challenges: Key hurdles at this stage include securing early buy-in from stakeholders and validating the commercial viability of the project.
• Navigating Challenges: Engaging in stakeholder mapping, developing early financial models, and understanding government policies on green hydrogen support (such as the National Hydrogen Strategy) can ensure alignment and support for the project.

2. Feasibility & Scoping Study

• Activities: A detailed technical and economic feasibility study is conducted, covering hydrogen demand, renewable energy sources, water availability, grid connection, and land use requirements. Environmental and social impact assessments are also key activities.
• Challenges: Feasibility studies must balance a variety of technical, environmental, and social considerations. Regulatory approvals, such as those for water usage and land, can be time-consuming and complex.
• Navigating Challenges: Employing multidisciplinary teams to assess technical feasibility and establishing strong partnerships with local communities early on can ease approval processes. Incorporating sustainability assessments and aligning with ESG (Environmental, Social, Governance) goals will support long-term viability.

3. Front-End Engineering Design (FEED)

• Activities: In the FEED stage, detailed engineering designs are produced, laying the foundation for the construction phase. This includes system designs for the electrolyser, storage, distribution infrastructure, and renewable energy integration.
• Challenges: Engineering complexities, especially for integrating renewable energy sources, water supply for electrolysis, and hydrogen storage solutions, can arise.
• Navigating Challenges: Utilising best-practice design principles, conducting iterative risk assessments, and leveraging technological advancements in electrolysers and hydrogen storage solutions can reduce risks. Engaging external experts in green hydrogen infrastructure also helps in overcoming technical challenges.

4. Securing Finance & Final Investment Decision (FID)

• Activities: Projects must secure funding from a combination of equity, debt, and government grants. Major funding sources include ARENA (Australian Renewable Energy Agency), CEFC (Clean Energy Finance Corporation), and private investments.
• Challenges: Raising capital for a green hydrogen project can be difficult due to the nascent market and high initial costs of technology.
• Navigating Challenges: Creating a robust financial model that incorporates clear Return on Investment (ROI) metrics, carbon credits, and potential revenue from hydrogen sales is essential. Government incentives and partnerships with large-scale industrial players can also support funding efforts.

5. Construction and Execution (EPC)

• Activities: The construction phase includes building the production plant, integrating renewable energy sources, and constructing storage and transportation facilities. During this phase, project management and contractor oversight are critical.
• Challenges: Delays in construction, cost overruns, and supply chain disruptions are significant risks during this phase.
• Navigating Challenges: Employing robust project management methodologies, such as EPC (Engineering, Procurement, and Construction) contracts, can mitigate risks. Implementing a modular construction approach and pre-emptively addressing supply chain issues can further reduce disruptions.

6. Commissioning and Operations

• Activities: In this final stage, the plant is commissioned, and hydrogen production begins. Ongoing operations include system optimisation, maintenance, and safety protocols.
• Challenges: Operational challenges include maintaining cost efficiency and optimising the hydrogen production process.
• Navigating Challenges: Continuous monitoring of performance metrics and adopting digital twin technology for predictive maintenance can increase efficiency. Establishing long-term offtake agreements with transport and industrial partners ensures consistent demand and revenue streams.

Transitioning Heavy Haulage Transport to Net-Zero Fuels

The Case for Green Hydrogen in Heavy Haulage

Decarbonising the heavy haulage sector is a critical component of Australia's net-zero transition. Long-haul trucks are major contributors to Scope 1 emissions, and electrifying this sector is particularly challenging due to the weight and distance requirements. Green hydrogen, produced via electrolysis powered by renewable energy, offers a viable solution. When used as a fuel for either Hydrogen Internal Combustion Engine (H2ICE) trucks or hydrogen fuel cell trucks, it provides a zero-emissions alternative to diesel.

The Role of H2ICE Trucks in the Transition

H2ICE trucks use hydrogen as fuel in a modified combustion engine, offering an early transition technology that leverages existing supply chains and manufacturing processes for heavy vehicles. These trucks can be rolled out more quickly than hydrogen fuel cell vehicles, as they utilise conventional truck platforms with minimal modification.

Advantages of H2ICE Trucks:

• Quicker to Market: H2ICE technology can be implemented using existing truck manufacturing infrastructure, reducing development timelines.
• Cost-Effective Transition: Compared to hydrogen fuel cells, H2ICE trucks are cheaper to produce and maintain in the short term, making them attractive for early adopters.
• Ease of Refuelling: Existing refuelling stations can be modified to support hydrogen refuelling, enabling easier infrastructure development.

Challenges of H2ICE Adoption:

• Efficiency: H2ICE engines are less efficient than hydrogen fuel cells, which means higher fuel consumption.
• Hydrogen Infrastructure: A lack of hydrogen refuelling stations is a significant barrier, though targeted investments in regional transport hubs can address this.
• Navigating Challenges: Government incentives for infrastructure development, particularly in key transport corridors, are essential. Collaborations between hydrogen producers, truck manufacturers, and logistics companies will be critical to scaling this solution. Further, as hydrogen production ramps up and costs decrease, a gradual transition to fuel cell vehicles for higher efficiency will follow.?

Conclusion

The journey from concept to operation for a major green hydrogen project in Australia is complex but essential to the nation’s decarbonisation goals. Overcoming technical, financial, and regulatory challenges requires strategic partnerships, robust financial modelling, and innovative project management approaches.

Transitioning Australia’s heavy haulage sector to green hydrogen, starting with H2ICE trucks, is a key component of the country's net-zero future. H2ICE trucks provide a practical, short-term solution to decarbonising long-haul transport, offering an early, cost-effective entry point into the hydrogen economy. While hydrogen fuel cell vehicles remain the ultimate goal for maximising efficiency, H2ICE trucks are an essential stepping stone in the broader green hydrogen journey.

This twin-track approach—developing large-scale hydrogen production projects and transitioning heavy transport to hydrogen-based fuels—will set the stage for Australia's broader energy transformation. The synergy between green hydrogen production and its application in heavy transport underlines the critical role of hydrogen in achieving net-zero emissions.

Author

Geoff Gourley is a global leader in social innovation, impact investment, and ESG consulting. With over 30 years of experience across industries such as design, construction, infrastructure, renewable energy, and technology, Geoff has established himself as a key figure in the sustainability space. In 2017, he was recognised as one of the Top 100 Social Entrepreneurs and Innovators globally and is a LinkedIn Top Voice.

He is an investor in CLARA Energy and, as Director ESG & Program Delivery, is leading the development of Project Rosedale, a 25 tonne per day Green Hydrogen Production Facility based on the Hume Highway in NSW, about halfway between Melbourne & Sydney.