Let's talk about hydrogen energy!

The great author and futurist, Jules Verne, once said:

'I believe that water will one day be employed as fuel, that hydrogen and oxygen which constitute it, used singly or together, will furnish an inexhaustible source of heat and light, of an intensity of which coal is not capable'.

To realise Monsieur Verne's vision, however, we must understand hydrogen as a renewable energy source, what it can do, and the issues that may arise in using it.

As the website for the Federal Department of Climate Change, Energy, the Environment and Water states:

Australia has abundant natural resources to make clean hydrogen for our own use and supply the world.

Our vision is to build a clean, innovative, safe and competitive hydrogen industry that benefits all Australians. Since the release of?Australia's National Hydrogen Strategy in 2019,?there is now a $127 billion pipeline of announced hydrogen investment in Australia.

This includes over 15 projects that have passed final investment decision (FID) and over 80 announced renewable hydrogen projects.

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This pipeline of projects is diverse, with the potential to help revitalise manufacturing, support regional economies, create jobs, investment and trade opportunities, while helping Australia achieve its decarbonisation targets.

These projects include the Northern Territory Hydrogen Hub and the recently announced Townsville Hydrogen Hub. These are just two examples of what Business Council of Australia CEO, Jennifer Westacott, was talking about when she observed in October 2021 that regional Australia would be at 'the epicentre' of the renewable energy sector and that green steel and hydrogen, wind and solar farms' won't be developed in Pitt Street or Collins Street! (the article in which this quote appeared is here: https://tinyurl.com/4acm5ahs).

What is hydrogen energy?

Hydrogen energy is a clean and renewable energy source that has the potential to play a significant role in reducing greenhouse gas emissions and meeting global energy demand. Hydrogen production occurs through various methods, including steam methane reforming, electrolysis, and biomass gasification.

How is hydrogen energy produced?

Steam methane reforming is the most common method of hydrogen production and involves the reaction of methane (natural gas) with steam to produce hydrogen and carbon dioxide. This process is highly efficient but produces significant amounts of carbon dioxide, a greenhouse gas.

Electrolysis is another method of hydrogen production that uses electricity to split water into its constituent parts: hydrogen and oxygen. This process is considered a clean and renewable method of hydrogen production, as the only by-product is oxygen (hence the reference to it as ‘green hydrogen’). However, it is currently more expensive than steam methane reforming and is not as widely used.

Biomass gasification is a method of hydrogen production involving the gasification of organic matter, such as wood or agricultural waste, to produce a mixture of hydrogen and carbon monoxide. This mixture, known as 'synthesis gas', can then be cleaned and converted into hydrogen. This method of hydrogen production is considered a sustainable and renewable energy source, as it utilises waste materials that would otherwise be discarded.

What can hydrogen energy be used for?

Once hydrogen is produced, it can be used for various applications, including transportation, industrial processes, and power generation. In transportation, hydrogen can fuel vehicles, including trains, buses, cars and trucks (like the one pictured above this article, produced by H2 Global Ltd, an ARA shareholder), which will be built in Gippsland, Victoria).

Hydrogen fuel cell vehicles have several advantages over traditional gasoline and diesel vehicles, including lower emissions and increased fuel efficiency. The development of hydrogen refuelling stations would allow hydrogen-powered vehicles to be used for long-distance travel, reducing dependence on fossil fuels.

In industry, hydrogen can be used as a chemical feedstock to produce a wide range of products, including fertilisers, plastics, and pharmaceuticals. It can also power industrial processes, such as refining and petrochemical production.

And in the power sector, hydrogen can be used to generate electricity through fuel cells or combustion. Fuel cells convert hydrogen and oxygen into electricity, with water and heat as the by-products. Hydrogen combustion generates electricity and heat, and the result is water vapour.

Safety and other concerns in using hydrogen energy (the 'Hindenburg Issue')

While hydrogen energy has many benefits, safety concerns must be addressed. Hydrogen is a highly flammable gas that must be handled and stored correctly to prevent accidents. Hydrogen fuel cell vehicles, for example, have high-pressure hydrogen tanks that must be designed and tested to ensure they can withstand collisions and other types of impact.

Waste hydrogen is another critical issue demanding our attention. Hydrogen is a clean energy source; however, the production and use of hydrogen can generate waste products, such as carbon dioxide, that need to be safely disposed of. Carbon capture and storage technologies can be used to capture and store carbon dioxide produced by hydrogen production, reducing its environmental impact.

Finally, one of the main challenges in using hydrogen energy is the cost of producing it, which is currently high. However, as technology improves and economies of scale are realised, hydrogen production costs are expected to decrease and quickly. The International Energy Agency (IEA) estimates that the cost of hydrogen production from renewable sources could drop by as much as 50% by 2030 and up to 70% by 2050. And as demand for hydrogen increases, the cost of production is likely to decrease due to economies of scale.

Hydrogen energy's potential role in Australia's future

Hydrogen energy has the potential to play a significant role in Australia's future energy mix. As a clean and renewable energy source, hydrogen can reduce greenhouse gas emissions while improving our energy security in an increasingly troubled geopolitical world.

It is a versatile renewable energy source that can be stored for later use, making it an ideal candidate for a wide range of applications, including those discussed above.

Australia has the potential to become a significant player in the global hydrogen market, which means that the development of our hydrogen energy sector now could lead to significant export dollars later. We have abundant natural resources, including sunlight and wind, which can be used to produce hydrogen through the process of electrolysis. Australia also has a well-developed hydrogen production, storage, and distribution infrastructure.

Interestingly, hydrogen energy could also have a significant impact on the generation of electricity itself. Hydrogen can store excess renewable energy, such as solar and wind power, and then release it as needed. This hydrogen attribute would help stabilise the grid and improve energy security.

For all these reasons, the hydrogen energy sector and other renewable energy sectors springing up in regional Australia require governments, working with industry, unions and regional communities and organisations to plan together intensively and quickly before taking action to accommodate this growth.

By doing so, we will ensure the regions will share in the benefits of the new energy economy and can attract and retain the workforce necessary to grow these sectors and the secondary industries that will inevitably grow out of them. This has to be a part of the vision for a clean energy future for all Australians. ?