Can the Middle East open the door to affordable clean hydrogen?

Image: Ghadir Shaar

A report by the International Renewable Energy Agency (IRENA) has suggested affordable green hydrogen could already be obtainable, based on the record-breaking low prices for solar negotiated in the Middle East.

Solar electricity tariffs of $0.0157, $0.0135 and $0.0104 per kilowatt-hour agreed in Qatar, the United Arab Emirates and Saudi Arabia, respectively, in the last 18 months, would enable renewables-powered hydrogen to be produced for as little as $1.62 per kilogram, according to IRENA's Renewable Power Generation Costs in 2020 report.

The Abu Dhabi-based international body made its calculations – all of which are in U.S. dollars – based on the $0.0104 solar power tariff agreed in Saudi Arabia in April, with green hydrogen generation being modeled at the Dumat al Jandal site in the kingdom which boasts strong solar and wind power resources. With the site already hosting a wind farm, IRENA modeled a hydrogen plant which would also harness solar and be connected to the grid. The report suggested lack of a grid connection would raise the renewable hydrogen cost to $1.74/kg, which still compares favorably to the current $1.45-2.40/kg price of hydrogen production powered by natural gas and equipped with carbon capture and storage (CCS) tech.

Further extrapolating the costs, the study estimated a fall in hydrogen electrolyzer costs, from $750 per kilowatt of capacity to $350, would enable renewable hydrogen production for $1.16/kg. Raising electrolyzer efficiency to 72.5% and extending stack lifetime from 15 to 17.5 on top of that, IRENA said, could take green hydrogen below the prized $1/kg point.

With this year's renewables price report explaining how the three tariffs secured in the Middle East since January 2020 can be regarded as viable without any hidden caveats or subsidy, the authors of the study stated: “low-cost renewable hydrogen may already be in reach.”

The document fleshed out how up to 800 GW of coal-fired power generation capacity worldwide could already be replaced by newly-built renewable energy facilities as solar and wind prices have dipped under the cost of running legacy fossil fuel plants in many markets. That estimate included a $5/MWh cost of integrating renewables into the electric grid and IRENA said, with around 40% of that overpriced capacity – and 37% of actual generation – based in Bulgaria, Germany, India and the United States, decommissioning could save around $32 billion per year in energy costs. Making the switch would also eliminate three gigatons of carbon emissions – 20% of what IRENA estimates is needed to keep global heating to a maximum 1.5 degrees Celsius this century.

The data

The latest edition of the report is based on data from around 20,000 renewables generation facilities worldwide which account for 1.9 TW of generation capacity, and on clean energy auction prices and power purchase agreements which add up to 582 GW of capacity. All the figures in the study exclude any form of subsidy and the authors point out, adding CCS to the world's overpriced coal plants would merely drive up their costs further.

IRENA has estimated all of Bulgaria and Germany‘s coal plants will this year cost electricity bill payers more than new renewables facilities would, based on a European carbon emissions price of €50 per ton. Even without an emissions trading scheme in the U.S. and India, the picture is similar, with 77-91% of American coal plants and 87-91% of Indian facilities also overpriced.

That conclusion is based on an estimated levelized cost of energy (LCOE) for solar power in India this year of $0.033/kWh, down from $0.038 last year; and of $0.031 in the States this year, although the report's authors note the solar module price has picked up between 1% and 9% in the first quarter of this year, thanks to shortages of raw materials such as polysilicon.

With the global LCOE of solar having fallen 7% from 2019 to last year, from $0.061 to $0.057/kWh, India led the world for low-price PV last year, with an average LCOE of $0.038/kWh for utility scale generation, ahead of China, with $0.044, and Spain, with $0.046. The authors noted Turkey also rapidly reduced average solar tariffs, to $0.052 last year, and Australia posted an average $0.057.

That translated into average solar project development costs of $596 per kilowatt installed in India, the world's lowest figure and down 8% from Indian costs in 2019. Solar projects in Vietnam came in to $949/kW and were only $796/kW in Spain last year, the report added. At the other end of the scale, projects in Russia cost $1,889/kW and, in Japan, $1,832, with those two countries exceptional among the 19 markets studied as the cost differences between areas from Canada (at $1,275/kW) down to India, were more evenly distributed.

Auction results posted last year, for projects expected to be commissioned this year and next, prompted IRENA to estimate the global average solar power price will fall to $0.039/kWh this year before rising slightly to $0.04 next year, which would still be a 30% fall on this year's figure and 27% less than the LCOE to be expected from new-build coal plants. With the predictions based on 18.8 GW of renewables capacity expected this year and 26.7 GW due in 2022, the study estimated 74% of the clean energy facilities expected this year and next will be cheaper than new fossil fuel generation sites.

Cheaper

Renewables are already making real headway, of course, with IRENA calculating 45.5 GW of the solar added last year was among the 62% of the 162 GW of clean energy facilities which were installed more cheaply than new-build coal plants.

Digging into the solar statistics, the report said mainstream solar panel costs in December ranged from $0.19 to $0.40 per Watt, for an average price of $0.27, with thin-film products averaging $0.28/W.

Operations and maintenance costs came in at an average of $17.80/kW last year in OECD countries and $9 elsewhere, in a year which also saw non-panel, balance-of-system equipment costs account for 65% of total project expense.

For residential solar arrays, average system prices in the 19 markets studied by IRENA ranged from $658/kW in India to $4,236 in California, for LCOE figures from $0.055/kWh in India to $0.236 in the U.K. For commercial systems, India was again the cheapest place to invest last year, at an average $651/kW, but a business in California would have to find $2,974/kW. Those system costs translated into LCOE numbers ranging between $0.055 in India and $0.19 in Massachusetts.

This article originally appeared on pv-magazine-usa.com, and has been republished with permission by pv magazine (www.pv-magazine.com and www.pv-magazine-usa.com).

First Solar

First Solar and Nel Hydrogen Electrolyser, a division of Nel ASA, a supplier of hydrogen technology, said they will develop integrated photovoltaic/hydrogen power plants.

First Solar and Nel will initially collaborate to develop an integrated power plant control and Supervisory Control and Data Acquisition (SCADA) system. The development of this network architecture is critical to enable optimisation of PV-electrolyser hybrid projects, resulting in low total cost of hydrogen and electricity. After that, the two will explore  ways of optimising and integrating technology throughout the solar and hydrogen production plant.

In statements, both companies stressed their desire to deliver the lowest total cost of solar to hydrogen possible. Both also noted that First Solar’s low-carbon production of its cadmium-telluride modules was significant for keeping emissions low.

Because the partnership is so recent in nature, no project timelines have been released as of yet.

This article originally appeared on pv-magazine-usa.com, and has been republished with permission by pv magazine (www.pv-magazine.com and www.pv-magazine-usa.com).

Image: Swinburne University

Researchers from Swinburne University’s Centre for Translational Atomaterials and Shaanxi Normal University have developed a novel catalyst that can produce high-performance solar-triggered hydrogen from seawater. If there is one thing that we all know about seawater, it’s that there is a lot of it, so it's no surprise that this  scientific discovery has great potential.

In order to utilize this new catalyst, the researchers had to develop a prototype device, the Ocean-H2-Rig. It can float on the ocean's surface to produce green hydrogen from seawater.

One of the easiest and greenest ways to produce hydrogen is through photocatalytic water splitting, which uses solar energy to split water into its composite atoms, securing the hydrogen and harmlessly emitting the oxygen. The novelty of the single-atom platinum catalyst the researchers have developed is that the photo-generated electrons and holes triggered by solar radiation do not try to recombine, which greatly improves hydrogen production efficiency.

A major consortium led by UK-based ITM Power, which claims the world’s largest electrolyser facility, with 1GW per annum manufacturing capacity in Sheffield, England, has signed a memorandum of understanding to test and demonstrate the viability of hydrogen fuel-cell electric buses in Australia’s public transport networks.

Dubbed the H2OzBus Project, it intends to initially deploy 100 hydrogen fuel-cell electric buses across up to 10 city hubs in Australia where interest and demand for fuel-cell buses has already been expressed.

Transport New South Wales, for example, is one state jurisdiction looking to transition its entire bus fleet to zero-emissions electric power in coming years and has invited expressions of interest from technology providers.

Vesna Olles, Director for Strategy and Business Development at BOC, a consortium member with groundbreaking Australian projects to its name, told pv magazine,“NSW is targeting 8,000 of its buses coming off diesel, so we hope to be able to be bold and consider how big this project could become.”

Olles said she was on a phone call today during which subject matter experts had been nominated from each of the five consortium members — Transit Systems (a subsidiary of Australia’s SeaLink Travel Group transport service provider); Canadian-headquartered fuel-cell manufacturer, Ballard Power Systems; infrastructure manager Palisade Investment Partners; BOC a supplier of compressed and bulk gases, chemicals and equipment in the South Pacific region; and ITM Power.

“H2OzBus is an exciting project which builds on the international partnerships that have been developed in recent years by ITM Power in the fuel-cell electric bus markets across the UK and France,” said Dr Neil Thompson, Managing Director of ITM Power commenting on how the company’s Proton Exchange Membrane (PEM) electrolysers using renewable energy and tap water to generate hydrogen, have found a market in Europe.

In the Australian context, Olles says, many different scenarios could play out in terms of infrastructure positioning, and technologies used, and “now that we’ve signed the MOU and some confidentiality terms, it allows us to share some workings with each other so we can put together a concept paper of what Phase 1 will look like.”

From brown and blue, to green hydrogen sources

Although the consortium’s long-term strategy is to provide hydrogen from renewable power sources, BOC already produces hydrogen in Australia via brown (coal) and blue (steam methane reforming) pathways, and these are likely to be the source of hydrogen to kickstart the H2OzBus proof-of-concept project.

However the consortium’s green intentions are underscored by the fact that it plans to seek funding support from the Australian Renewable Energy Agency under its remit to accelerate hydrogen projects that will contribute to decarbonising industry.

Further funds will be raised by Palisade Investment Partners, which will also provide strategic financial oversight of the project.

Palisade is known for managing renewable generation and transportation assets, such as Ross River Solar Farm and Snowtown 2 Wind Farm; and Gold Coast Rapid Transit, and Darwin, Alice Springs and Sunshine Coast airports. It provides institutional investors with access to such Australian infrastructure projects via tailored portfolios and co-mingled funds.

“Palisade believes green hydrogen will play an important role in the further decarbonisation of our economy,” said Palisade Managing Director and CEO Roger Lloyd.

Designing for infrastructure and efficiency

In Phase 1, the consortium will focus on the logistics of enabling fleets of hydrogen fuel-cell electric buses on designated public transport routes.

ITM Power and BOC will provide expertise on hydrogen production and refuelling infrastructure, while Ballard Power Systems is set to supply the fuel-cell system that will be integrated into the public-transport vehicles supplied by bus manufacturers.

Olles told pv magazine that the group will also explore the potential for technology startups in Australia to provide the fuel-cell technology; and the possibility of Ballard manufacturing fuel cells in Australia.

Ballard Power Systems President and CEO, Randy MacEwen said from Vancouver that the project will “provide bus operators with an alternative electric bus option with no compromise on performance and operation.” 

He added that, “Use cases requiring extended range, air conditioning and rapid refuelling are an ideal fit for our fuel-cell systems, which have been proven through more than 30 million kilometres of on-road experience to date.”

Ballard is pleased to sign MOU with strategic partners @boconline, @ITMPowerPlc & Transit Systems Australia for #H2OzBus Project investigating #zeroemissions #fuelcell buses for Australia #zeroemissions https://t.co/8NFnvOdNbD @STG_AUD @Lindeplc #hydrogen #cleantech pic.twitter.com/uMLos5zDNq

— Ballard Power (@BallardPwr) May 22, 2020

Keeping the fleet on schedule

Once in service, the 100 trial buses will be maintained and operated by Transit Systems.

CEO of Transit Systems’ parent company SeaLink Travel Group, Clint Feuerherdt, said taking part in the project allows Transit Systems to showcase its extensive network and capabilities.

Australia’s largest integrated land and marine, tourism and public transport service provider, SeaLink is known for its mainland-to-island ferry services, cruising and land-based tours, and resorts. It acquired Transit Systems, with its metropolitan bus operations in Australia, London and Singapore in January this year.

Feuerherdt said the company’s participation in H2OzBus is about ensuring “that our solutions continue to set the benchmark for what is possible”, which could serve as the project slogan.

Olles adds green fuel to this notion, saying, “For BOC this is a proof of concept for hydrogen mobility in Australia.”

She says it will provide a foundation for what the country’s  hydrogen future looks like, “not just for mobility but for other end uses such as power generation and as a fuel source for major industries such as steel refining.”

Although value adding to Australia’s iron ore resources may be a way down the track, Olles says that as a demonstration project H2OzBus holds promise for “contributing to the goal of zero emissions” — a bus the majority of Australians are eager to board.

This article originally appeared on pv-magazine-australia.com and has been republished with permission by pv magazine (www.pv-magazine.com and www.pv-magazine-australia.com.)

IBE estimates that the offtake agreements for its Project NEO will amount to over $7.5 billion.

Image: Horizon Power

Perth-based Infinite Blue Energy (IBE) has unveiled a bold plan to deliver Australia’s first green hydrogen baseload power plant that could change the electricity landscape in New South Wales (NSW). Project NEO is initially focused on providing 1000 MW of green hydrogen using solar, wind and hydrogen fuel cells for 24/7 electricity supply.

The project, which will commence with a feasibility study and detailed design over the next 18 months, aims to transition energy-intensive, fossil fuel-dependent industries in NSW to 100% renewables by 2027. To provide reliable baseload power, NEO will use solar and wind to produce hydrogen, a certain amount of which will be stored in fuel cells and available when there is no wind or sun, on cloudy days and at night. 

“The vision at IBE is to show the world, first and foremost, that Australia has the technology, skills and entrepreneurial mindset to be a true leader in the development of green hydrogen plants,” IBE CEO Stephen Gauld said. “We are currently in robust negotiations with major electricity users in the NSW Hunter Region that have confirmed their intentions to transition to green hydrogen baseload electricity this decade.”

Led by a team with substantial experience in the oil and gas sector, IBE has only recently appeared on the Australian energy scene. In April, the company unveiled plans for the first of its many green hydrogen projects in Western Australia (WA), announcing an initial $300 million investment for its first phase of construction. Other companies that have announced gigawatt-scale plans in WA include BP Australia, which is looking to develop around 1.5 GW of greenfield solar and wind projects for its green hydrogen and ammonia plans, and Siemens, which aims to produce green hydrogen for local industry and export to Asia from up to 5 GW of wind and solar capacity.

Another megaproject underway in WA is the Asian Renewable Energy Hub (AREH), which could feature up to 15 GW of solar and wind capacity with the goal to supply local energy users in the Pilbara region and develop a green hydrogen manufacturing hub for domestic use and export to Asia. Recently, AREH has moved forward after being recommended for environmental approval.

Fast-tracking NSW’s energy transition

Project NEO, which comes with a $2.7 billion price tag, is expected to feature 235 wind turbines and a PV array covering approximately 1,250 hectares of land. The cumulative renewable energy capacity will stand at around 3.5 GW and will be deployed at high-value sites for solar and wind production, in combination with a “distributed generation model”. “This allows the generation sites to blend in with existing land users with minimal impact,” IBE says.

Over 2 million NSW homes stand to benefit from Project NEO, the company says, in addition to other economic benefits. IBE anticipates that a significant proportion of the workforce required for Project NEO will be drawn from the existing coal-fired power stations in NSW, since many of the skills are similar.

“Project NEO will produce local and indirect employment, allow existing industries to decarbonize, and facilitate the establishment of new industries,” Gauld says. “It will localize manufacturing, give a 100% green supply of power to NSW, fuel the reduction of the state’s carbon emissions and can therefore play a pivotal role in ultimately helping Australia become leaders in carbon emission reduction.”

This article originally appeared on pv-magazine-australia.com and has been republished with permission by pv magazine (www.pv-magazine.com and www.pv-magazine-australia.com).

Renewable energy makes sense of hydrogen.

Image: Australian Energy Market Operator (AEMO)

This morning Federal Government Ministers Mathias Cormann and Angus Taylor announced a $300 million Advancing Hydrogen Fund in terms of a panacea:

“From cheaper energy bills and job creation in regional Australia, to playing a role in reducing global emissions both at home and in countries that buy Australian produced hydrogen, the industry’s potential cannot be ignored,” said Energy and Emissions Reduction Minister Taylor in the joint announcement.

The fund is designed to mesh with priorities under the national Hydrogen Strategy and as such will back areas that advance hydrogen production, developing export and domestic supply chains, establishing hydrogen hubs and building domestic demand for hydrogen.

Just a month ago, BloombergNEF released a report, Hydrogen Economy Outlook, which concluded that only a widespread global commitment to net zero emissions could generate the kind of investment — it calculated the need for US$150 billion in cumulative subsidies to 2030 — required to bring down the cost of producing hydrogen and make it competitive with other fuels.

Hydrogen is not a free kick

“Once you set a net zero target, and are serious about putting policies and measures in place to achieve that, then hydrogen becomes a necessary option,” Kobad Bavhnagri, Global Head of Industrial Decarbonisation at BNEF and lead author of the report, told pv magazine at the end of March.

“If you don’t have that clarity and that purpose,” Bhavnagri continued, “then actually there’s no need to do hydrogen and it won’t stand up.” A higher cost, less convenient energy source than fossil fuels such as coal, gas and oil, hydrogen only starts to make sense when the demand is created for a zero-emissions alternative.

Bhavnagri explained that development of hydrogen is a global task. It requires mass participation to achieve the economies of scale that will make hydrogen viable.

Based on fuel prices in March, the Hydrogen Economy Outlook estimated, for example, that if the electrolysers used to produce hydrogen from water (one method of hydrogen production that lends itself to using renewable energy to power the process of atom splitting) could be driven dramatically down in cost by demand and manufacturing efficiencies, renewable hydrogen could be produced for US$0.8 to US$1.6/kg by 2050. This was then equivalent to gas priced at US$6-12/MMBtu, making it competitive with natural gas.

Australia’s Federal Government has set the open-ended goal — dubbed ‘H2 under 2’ — of producing hydrogen for AU$2 a kilogram as part of its as yet unreleased but much anticipated Technology Investment Roadmap.

Its $300 million Advancing Hydrogen Fund is to be administered by the Clean Energy Finance Corporation (CEFC), which this morning welcomed the announcement of its amended mandate to make the $300 million available from its existing funds. 

“We are confident we can use our capital to help build investor confidence in the emerging hydrogen sector,” said CEFC CEO, Ian Learmonth.

It’s not easy staying green

This morning’s CEFC statement also emphasised that, “In line with the CEFC Act, projects seeking CEFC finance through the Advancing Hydrogen Fund are required to be commercial, draw on renewable energy, energy efficiency and/or low emissions technologies and contribute to emissions reduction.”

The CEFC says that from the allocated Advancing Hydrogen Fund it anticipates providing either debt or equity finance to eligible larger-scale commercial and industrial projects likely to require $10 million or more in CEFC capital, alongside finance raised from other sources.

CEFC identifies an early priority for funding to coincide with the Australian Renewable Energy Agency (ARENA) $70 million Renewable Hydrogen Deployment Fund. 

This ARENA funding round opened on 15 April, and expressions of interest are currently set to close on 26 May. Outcomes are expected to be announced on 30 November this year.

“We see green hydrogen as offering the most credible pathway to decarbonisation for high emitting sectors and those which lack scaleable electrification options,” said CEFC’s Learmonth. CEFC identifies some of these sectors as manufacturing, heavy transport such as trucks and shipping, mining, processing of metals and production of chemicals.

Exports going nowhere: use it on shore

One clear point of departure between BNEF’s Hydrogen Economy Outlook and the stated ambitions of the Government Advancing Hydrogen Fund is in relation to hydrogen as an export industry for Australia.

Cormann describes the Fund as a “catalyst for the future growth of Australia’s hydrogen industry,” which has the potential to become “a major new export industry”. Taylor adds the commitment made in the National Hydrogen Strategy, launched in November last year, “to build Australia’s hydrogen industry into a global export industry by 2030”.

Bhavnagri, on the other hand, found in his BNEF report that, “the economics of exporting hydrogen by ship are very poor”.

He told pv magazine, “This narrative about Australia being able to export hydrogen is a bit misplaced … Hydrogen is not like natural gas; it’s far less dense and has a liquefaction temperature much lower than natural gas, so it’s just much harder to put on a ship in a liquefied state — it’s really expensive to do.”

He concluded that “Australia can be a hydrogen superpower by using it onshore and exporting value-added products.”

Both the Australian Government and BNEF champion the establishment of hydrogen hubs, with BNEF explaining the efficiencies that such developments could offer: hubs might include clusters of wind-and-solar-powered electrolysers, and large storage facilities to smooth and buffer hydrogen supply, served by networks of dedicated pipelines feeding hydrogen to co-located industrial customers. 

Renewable resource can make Australia’s hydrogen the cheapest

Writing in BNEF’s Hydrogen Economy Outlook, Bhavnagri notes: “Our analysis suggests that a delivered cost of green hydrogen of around US$2/kg in 2030 and US$1/kg in 2050” is achievable in China, India and Western Europe. Countries with the best renewable and hydrogen storage resources, such as Australia, could achieve 20-25% reductions on these costs.

But BNEF cautions that even at US$1/kg the use of hydrogen in place of fossil fuels is still likely to require a carbon price or other policy measures to make it the most attractive option: “This is because hydrogen must be manufactured, whereas natural gas, coal and oil need only to be extracted, so it is likely to always be a more expensive form of energy.”

Ultimately Bhavnagri is optimistic about the potential for hydrogen to help decarbonise the planet, and to open new opportunities for green manufacturing in Australia that could significantly boost employment opportunities.

Signs of hydrogen life

The Hydrogen Economy Outlook said investors keen to be involved in hydrogen projects should look out for evidence of seven key events that signal opportunity for green hydrogen to scale as needed to provide a viable alternative to fossil fuels, and act as an accelerator to decarbonisation . In order of importance, the first three indications are:

1. Legislation of net-zero climate targets
2. Harmonisation of international standards governing hydrogen use
3. Introduction of targets with investment mechanisms

We now have an investment mechanism, administered by a trusted body which has previously facilitated almost $28 billion worth of clean-energy projects in Australia since its inception in mid-2012, but this investment seems still untethered from Government political will and policy needed to reach net zero emissions within a timeframe that will help global citizens avoid the next looming threat to our lives. Prosperity assumes a healthy planet.

Schedule a call with us to see how Green Hydrogen can help take you further.

This article originally appeared on pv-magazine-usa.com, and has been republished with permission by pv magazine (www.pv-magazine.com and www.pv-magazine-usa.com).

The researchers have made a green hydrogen production breakthrough.

Image: Griffith University

Griffith University researchers have reported a breakthrough in clean hydrogen electrolysis using CoSe₂ nanobelts, ultrathin sheets made out of a lattice of cobalt (Co) and selenium (Se), as highly-efficient water splitting electrocatalysts. To fully unleash the power of CoSe₂ nanobelts as an electrocatalyst for the oxidation or breakdown of water, the researchers have combined two separate processes.

In a paper published in Nature Communications, the Griffith University researchers describe how they have implemented both ‘Iron (Fe) doping’, replacing some of the cobalt on the nanobelt with iron, and ‘Cobalt (Co) vacancy’, removing some of the cobalt. When applied individually, the two processes improve the nanobelt’s ability to speed up reactions to a small degree but put together their combined effect dramatically increases catalytic activity.

From pv magazine Australia

The new Renewable Hydrogen Market Report, produced by ANT Energy Solutions and backed by the Australian Renewable Energy Agency (ARENA), features a number of key findings in the race to develop an Australian renewable hydrogen economy. The main conclusion is that on-site solar is the only way to go.

The report’s authors ran two models for renewable hydrogen produced by electrolysis, The first is a high OPEX, low CAPEX model (grid-connected, high capacity-factor), while the second is a high CAPEX, low OPEX model (behind-the-meter, low capacity-factor). The analysis indicated “that despite the much lower utilization rate, behind-the-meter solar renewable hydrogen generation can produce hydrogen at approximately half the cost per kilogram to a grid-connected system” with an electricity cost of AU$0.11 (US$0.07) per kilowatt-hour.

What this means is that the most cost-effective way of producing renewable hydrogen is by powering an electrolyzer with on-site solar. Indeed, the report suggests that hydrogen can be produced via on-site solar at a cost of $3.19 per kilogram of hydrogen versus $6.08 if produced from the grid.

Of course, considering that the costs of solar continue to decrease as efficiency rises, the cost of behind-the-meter solar hydrogen will only continue to drop, possibly below the AU$2 mark.

“Based on this alone, Australia has great potential to drive forward an increase in renewable energy and renewable hydrogen production,” the authors of the report said. “The impetus from ARENA is continuing to drive the cost of solar down with a continued reduction in the cost of large scale solar expected over the next five to 10 years.”

The call then, is for states and the federal government to support large-scale solar electrolysis as the cleanest and most obvious way to drive down the capital costs of a hydrogen economy.

Economic ecosystem

On-site solar is the most cost-effective way to build a domestic and export hydrogen industry, but it also might be the only way. “Commercialization of hydrogen as an end product requires the development of an entire economic ecosystem,” according to the report. “As with all ecosystems, they cannot function until there is critical mass in the system, so the faster scale can be developed, the more chance there is for the ecosystem to form and advantage to be generated.”

If Australia doesn’t act on its competitive advantage sooner rather than later, other countries might develop their hydrogen economies and start exporting first. The report points to Australia’s solar panel industry as an example of “where Australia failed to develop this ecosystem and competitive advantage has been lost to China and the United States, where scale of development has occurred in technology research, equipment design and fabrication.”

Businesses have already noticed the obvious competitive advantage. Toyota is installing a solar-electrolyzer at its site in Melbourne. Indeed, the company recently celebrated Earth Day by unveiling the first completed stage of its green hydrogen hub, with the help of ARENA funding.

Export potential

The CSIRO National Hydrogen Roadmap expects demand for hydrogen imports by Asian nations to reach 3.8 million tons by 2030. At the same time, ACIL Allen Opportunities for Hydrogen Exports model suggests that 10% to 20% of Japanese and South Korean hydrogen demand could be met by Australian exports. In other words, hydrogen means big business.

However, before we can talk about how much hydrogen countries such as Japan and Korea might want from us – let alone how we’ll manage to get the hydrogen up there – we must first decide how we’re going to produce said hydrogen.

In November, the COAG Energy Council adopted the National Hydrogen Strategy, our pathway to a domestic and export hydrogen economy. The strategy, however, remains “technology-neutral,” which is to say it is not solely to produce green hydrogen, but to keep Australia’s options open to fossil-fuels as well — playing the field, as it were. Although, as the ANT report shows, fossil-fuel-produced hydrogen is rather senseless compared to renewably produced hydrogen. Energy Minister Angus Taylor may think he is playing the field, but these are Flanders Fields, not Elysian ones, which is to say that Taylor is pursuing a senseless policy for the comforting sake of outdated norms.

Future forecasts

The ACIL Allen Opportunities for Hydrogen Exports model projected a mid-case forecast of 500,000 tons of hydrogen per annum by 2030. To put that in perspective, if we continue only with what we have already and what we have under construction, by 2025 we will have less than 3,000 tons per annum by 2025.

This is to say, if we don’t scale up renewable hydrogen production capacity by 160 times by 2025, we’ll be just 497,000 tons short of the ACIL Allen mid-case.

For an increase of that scale, Australia needs to put multiple industry-scale (100 MW-plus) renewable hydrogen projects in place over the next few years or the cost of production will remain too high and the hydrogen opportunity will be tentative, if not lost.

The renewable hydrogen opportunity cannot afford to be lost, as the scope of its Promethean potential is unfathomable, but there is much that can be understood already. If renewable hydrogen breaks the $2 per kilogram barrier, for example, it could immediately replace the domestic market for natural gas feedstock and provide a low-cast pathway to a green ammonia export industry, let alone Australia’s grander export ambitions. But, of course, “industry-scale renewable hydrogen development will require government and industry support to enable the adoption and the continued reduction in the cost per kilogram of renewable hydrogen … At levels below A$1.95 between 2025 and 2030, Australia will be able to transition a domestic market and be competitive in the forecast export markets.”

Currently, it is estimated that only 2% to 4% of the world’s hydrogen is produced via electrolysis.

 

Interested in learning more about green hydrogen? Schedule a call with us here:

 

 

This article originally appeared on pv-magazine-usa.com, and has been republished with permission by pv magazine (www.pv-magazine.com and www.pv-magazine-usa.com).

 

Hydrogen from electrolysis is often described as the missing link in the energy transition.

Image: Roy Luck/Flickr

As the momentum is building behind hydrogen in Australia and abroad, the Queensland University of Technology (QUT) is leading the way in research and development with a range of initiatives on the ground. After it played a key role in Australia’s first green hydrogen shipment to Japan, QUT is now readying to drive the green hydrogen export industry through the Future Energy Exports Cooperative Research Centre (FEnEx CRC).

Officially established on Friday, the FEnEx CRC is a national collaboration of 28 industry, government, and research partners. As announced on Friday, the center won the backing of the Federal Government to the tune of $40 million, which builds upon a further $122 million in support from industry, state governments, and research organizations.

The CRC’s core mission is to ensure Australia’s LNG industry remains competitive, reduces its environmental footprint, and helps to grow hydrogen exports for new emerging markets. Its foundation project will be establishing the LNG Futures Facility, a 10 tonne-per-day research and teaching plant to be based at Kwinana, in Western Australia.

“FEnEx CRC will undertake cutting-edge, industry-led research, education and training to help sustain Australia’s position as a leading LNG exporter, and enable it to become the leading global exporter of clean hydrogen,” Professor Eric May, UWA’s Chevron Chair in Gas Process Engineering and FEnEx CRC Acting CEO, said. “Our established LNG sector is a key advantage in the race to grow a hydrogen export industry because of the similar workforce skills, engineering standards, shipping routes, and business relationships.”

But while Professor May has spoken about “clean” hydrogen, there has been no indication that this hydrogen will be truly clean and produced by electrolysis using solar or wind electricity. He said the CRC would support Australia’s National Hydrogen Strategy, which remains “technology-neutral”, with both hydrogen produced using renewable energy and the one via fossil fuels with “substantial” carbon capture and storage (CCS) in the game.

Throughout the consultation process last year, Chief Scientist Alan Finkel continued to push Australia toward hydrogen produced by solar and wind, but also remained attached to the fossil fuel-CSS idea. The stance was reflected in the Strategy itself.

Green hydrogen push

Nonetheless, Professor Ian Mackinnon, from QUT’s Institute for Future Environments, said FEnEx would build on the extensive work QUT had already done in the green hydrogen sphere, including partnering with Japanese company JXTG to produce and export green hydrogen to Japan and leading a $7.5 million research project to establish a renewable energy pilot plant producing green hydrogen at the Redlands Research Facility. This latter project is supported by four universities, Japanese and Australian corporations, the Queensland Government and the Commonwealth agency, ARENA.

“The FEnEx CRC is an excellent opportunity to translate the skills from one industry, and to build another export industry in the world of green hydrogen storage and utilization,” Professor Mackinnon said. As part of the FEnEx CRC, QUT’s Professor Mackinnon and Professor Anthony O’Mullane will be working on research projects involving the hydrogen export and value chains.

“This complements QUT’s activities in developing a renewable energy facility at Redlands to power the production of hydrogen using various electrolyser technologies,” Professor O’Mullane said. “This program will enable the next generation of scientists and engineers with the key skills for the transition to renewable power generation, storage, transport and utilisation. This CRC will accelerate efforts in the development of cheaper, more stable catalysts for rapid deployment in commercial scale electrolysers to produce green hydrogen.”

Another QUT professor, Rachel Parker will lead the Market Development Program in the FEnEx CRC, which will aim to identify the strongest global market opportunities for the development of Australia’s future energy exports. “The market development program will identify the business and social drivers and barriers to the adoption of technologies developed through the other CRC programs and will maximise the market and social benefits from the rapidly changing technological and industrial context of energy,” she said.

The Australian Renewable Energy Agency (ARENA) has announced a $1.25 million (US$807,495) grant to Queensland government-owned electricity generator Stanwell Corp. to assist a feasibility study for a renewable hydrogen demonstration plant, which will be located next to the company’s existing power station near Rockhampton. Stanwell’s $5 million study, which started in July 2019, is investigating the technical and economic feasibility of hydrogen electrolysis projects above 10 MW in size. If built, it will be the largest green hydrogen electrolysis plant in Australia.

To offset 100% of the emissions associated with running the electrolyzer, Stanwell will procure energy and green certificates from renewable energy projects in the region. This will be yet another innovative deal for the publicly owned generator, following last year’s network support agreement between Stanwell’s Kareeya Hydro Power Station and Pacific Hydro’s 100 MW Haughton Solar Farm. Under that deal, the services provided by Kareeya will strengthen the regional grid, which is subject to lower system-strength levels, to operate the solar project in line with generator performance standards.

A key outcome of the study will be to define the most valuable end use for renewable hydrogen. The utility-scale electrolyzer will enjoy the advantages of the existing power station to use pre-existing land approvals, network connections, and access to demineralized water, which is required for hydrogen production.

The project could demonstrate the role that renewable hydrogen production can play in an electricity system. In particular, the hydrogen electrolyzer could be used as a complementary energy market load that can ramp up in times of excess energy supply, such as peak solar output during the day. It could also aid system security through participation in Frequency Control Ancillary Services (FCAS) markets or future markets such as Fast Frequency Response (FFR).

“Through Stanwell’s feasibility study we’re showing a new option for producing and using renewable hydrogen. This will create opportunities across the domestic economy and help to position Australia to become a major renewable energy exporter,” ARENA CEO Darren Miller said. The ongoing study is expected to be completed later this year.

The hydrogen industry in its infancy in Australia, but the study will determine the optimal conditions for electrolyzers operating at high capacities. “The construction and operation of a utility-scale electrolyzer is important to demonstrate the costs associated with producing renewable hydrogen at scale,” Miller said. “If feasible, this could help underpin future commercial scale deployments leveraging existing network infrastructure at other power stations, and play a role in driving down the cost of domestic hydrogen production.”

ARENA has committed approximately $50 million towards hydrogen initiatives so far, including more than $22 million to R&D projects, and almost $28 million to demonstration, feasibility and pilot projects. In some of its earlier Queensland initiatives, ARENA announced it was providing $2.9 million in funding to two studies looking at the potential to use solar and wind-powered hydrogen produced via electrolysis to increase ammonia production at facilities which currently rely on gas as feedstock.

Schedule a call with us to see how Green Hydrogen could work for your facility:

This article originally appeared on pv-magazine-usa.com, and has been republished with permission by pv magazine (www.pv-magazine.com and www.pv-magazine-usa.com).