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.

 

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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).

 

Photo: Tecnalia

Iberdrola will develop a large green hydrogen project from renewable energy sources in Puertollano, according to what the city council has made public, which, in turn, mentions an article published in the economic newspaper Expansión.

The project will involve an investment of up to 150 million euros in a plant that will be one of the largest in Europe of its kind, that is, production of hydrogen from photovoltaic energy, unlike other systems, which are based on fossil fuels pollutants. The group's goal is to achieve decarbonisation and cheaper hydrogen in the future, which is now basically used in industry, but is beginning to have other applications, such as electric vehicles.

According to Iberdrola estimates, published last week by Expansión, the Puertollano plant will consist of a 100 MW experimental photovoltaic plant that will incorporate bifacial panels and string inverters, as well as a 20 MWh lithium-ion battery storage system. and 5 MW. It will also have a green hydrogen production system through electrolysis: divided into stackable modules that allow the plant to be expanded, according to the identified hydrogen demand needs. In this regard, different technologies will be tested: alkaline, proton exchange membrane, and solid oxide.

It will also have a main hydrogen storage system in pressurized tanks and an experimental storage plant for other technologies such as LOHC (organic liquid carrier hydrogen), as well as a control system that allows the optimal balance between renewable production, use of the battery and the energy dedicated to the production of green hydrogen.

Ideal location

"The choice of Puertollano as an enclave to launch the project is not accidental", they explain from the town hall. “It is a strategic place from which Iberdrola will not only be able to produce hydrogen, but will also be able to commercialize it for industrial use to adjacent companies for their production processes. The project will be located on the land that Iberdrola has had in Puertollano for years, and where it had already begun to build the photovoltaic. In Puertollano there is also the National Hydrogen Center. To distinguish itself from other hydrogens, Iberdrola will promote the creation of a green label for those produced with electricity before the authorities ”, they add.

Together with the project, Iberdrola will promote the creation of a 'green' label for the hydrogen produced that ensures that its carbon footprint is zero, thus helping hydrogen users to reduce their CO2 emissions.

The power company claims that decarbonising global hydrogen through its production with renewable electric energy would mean an increase in electricity demand of more than 10%, which would allow for the flood of renewable energy projects that the Government plans to incorporate with the new energy plan. .

Other pioneering projects

This project joins those that have been announced in recent weeks: the green hydrogen production plant in Lloseta, a pioneer in Spain, will start operating from 2021 thanks to the Power to Green Hydrogen Mallorca project, and will allow a generation of up to 10 MW of production.

The Fundación Hidrogen Aragón coordinates a project to promote decarbonisation in Europe: The HIGGS project, which is now being launched in Huesca, will study for 36 months the possibilities of injecting hydrogen into current natural gas networks as a way to reduce emissions of CO2 in sectors difficult to electrify.

Enagás and Ampere will be the first to produce hydrogen with solar energy in Spain: both companies have signed an agreement for the joint development of several R&D projects for hydrogen production with solar and batteries.

Tecnalia, Engie and the University of Eindhoven (TUe) create in Bizkaia H2SITE, a startup to produce green hydrogen on site.

Green Hydrogen has serious potential to accelerate the transition to clean sources of energy. Schedule a call with us to see how we could work together: 

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

H2SITE will provide low cost, high purity small and medium scale distributed hydrogen.

Photo: Tecnalia

Ten years ago, the Tecnalia research and development center and the EIndhoven University of Technology (TUe) began collaborating on European projects around metal deposition technologies, and in 2018 they won the second EARTO Innovation award. A year later, they created a limited company, H2SITE, which French power company Engie has just joined through its corporate venture capital fund, Engie New Ventures.

The new company will be located in Bizkaia and will develop a technology for small and medium-scale distributed hydrogen generation, of high purity and low cost, using advanced membrane reactors. “For the creation of this new company, the strategy developed by Tecnalia in the field of gas separation membranes has been key. This technological excellence is combined with the strategic collaboration established together with the University of Eindhoven, for the development of advanced membrane reactors ”, the company states in a statement.

The project will represent the first investment by Engie New Ventures, one of the largest global funds in the utilities sector, in start-ups in Spain.

The new company has received from the beginning the support of the Provincial Council of Bizkaia, and will have an initial staff of 3 people for the first year of activity. H2SITE will provide low cost, high purity small and medium scale distributed hydrogen for both stationary applications and isolated areas requiring energy and mobility. "H2SITE will facilitate the deployment of 100% green electric mobility, opening up the possibility for on-board systems, within the vehicles themselves, to generate hydrogen," says the company, adding that "as a hydrogen technology platform, H2SITE will be capable of producing hydrogen from various compounds, such as biomethane, ammonia, bioethanol, etc. "

H2SITE will exploit a technology developed by Tecnalia and TUe, based on the intensification of processes, through advanced membrane reactors, maximizing the efficiency of the hydrogen production process and minimizing the necessary resources.

As for its industrial customers, H2SITE will offer a reduction of up to 40% of its current costs associated with the consumption of hydrogen, while reducing environmental impacts and avoiding regulatory and safety problems associated with the storage of hydrogen as it is an spot on demand.

“The main business objective of the startup is to become a state and European benchmark in the generation of green hydrogen and therefore, a relevant lever in the necessary energy transition. To do this, the challenge is to become the main supplier of hydrogen generated in situ for industrial use in stationary applications in prioritized industrial sectors, which are chemical, food, metallurgical, glass and electronics, which together represent a great part of the regional and national GDP ”, the statement ends.

Enagás and Ampere Energy recently announced the signing of an agreement for the joint development of several R&D projects for hydrogen production with solar and batteries.

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

The project will be the first hydrogen injection experience in a real gas network in Spain with support for small-scale electrical storage, and will be carried out at the Enagás regasification plant in Cartagena.

Image: Enagás

Gas multinational Enagás and Ampere Energy, a Spain-based battery provider, have signed an agreement to begin joint production of hydrogen with solar power and energy stored in batteries.

The two companies will jointly work on several R&D projects to produce renewable hydrogen for self-consumption at the gas plant.

The project they are now planning will be the first hydrogen injection experience into a gas network in Spain, with small-scale storage as a back-up. It will be carried out at the regasification plant that Enagás operates in Cartagena, in the southern province of Murcia.

Ampere Energy has installed its Ampere Energy Square S 6.5 equipment at the Cartagena plant, which will have new storage and intelligent energy management solutions.

The installed equipment will allow Enagás to maximize the energy efficiency of the Cartagena gasification plant and reduce the environmental impact and its electricity bill up to 70%, according to the two companies.

The battery will store energy coming from both the photovoltaic system and the power grid, and will monitor this energy. Through machine learning algorithms and data analysis tools, the system will anticipate the consumption patterns of the plant, predict the available solar resource, and track prices in the electricity market, identifying the moments in which the cost is lower.

“This alliance opens the door to a long-term pact between Ampere Energy and Enagás to undertake joint R&D projects for energy storage and services,” both companies added.

If you are interested in learning how Green Hydrogen can work for you, schedule a call with us:

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).

Photo: Areva H2Gen

In its new environment, the container is unlikely to attract attention. Because pipes, valves and pressure vessels abound in the Höchst industrial park near Frankfurt. There, various companies use hydrogen for their production and chemical processes, and this is where the latest Areva H2Gen product will find its first place. With its contribution to the “MethQuest” research project, the company shows in which direction the development of large-scale PEM electrolysis can go. The specific device has an output of slightly more than one megawatt. The novelty is the overcapacity in the same amount.

According to the optimistic cost estimate by project manager Lucas Busemeyer, the technology already comes at a hydrogen cost of 3.60 per kilogram, including electricity costs of 5 cents per kilowatt hour. This would place them where decentralized electrolysis will only take in the next five to ten years. However, only with almost full utilization of the device with 8000 hours a year over 20 years. It must therefore be operated with mains electricity.

But since hydrogen from steam reformation is often even cheaper, Areva wants to make its unit fit for marketing on the balancing energy market (FCR) and to cross-finance it with its revenues. In addition, the device then contributes to the integration of renewable energies.

The challenge for this is that the electrolyzer can run at times with twice the output of 2 megawatts, at times with only 250 kilowatts, without damaging it or aging faster. The adaptations of the technology to this highly dynamic driving style are deliberately kept to a minimum, explains Busemeyer. The overcapacity should only increase the investment costs by 20 percent. He expects this premium to pay for itself within three to five years and hopes that the novelty will lower the hydrogen price to around EUR 3.45 per kilogram.

Comments from the judges

Xavier Daval : “The solution can deliver balancing energy and contribute to grid stabilization. Once the energy is converted to hydrogen, it can be used for various applications such as mobility or industry. ”

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 Denham hydrogen plant will be powered by solar.

Image: Horizon Power

The coastal town on Denham could be on the way to become zero emissions thanks to a green hydrogen demonstration project proposed by WA’s regional utility Horizon Power. The hydrogen plant powered by solar energy will supplement existing wind turbines, which already produce 60% of the town’s electricity.

Located in the Shark Bay World Heritage Area, Denham’s existing power supply is a combination of a Horizon Power owned and operated diesel facility, and a Synergy wind farm. Both assets are aging and in need of replacement.

Horizon Power has sought expressions of interest from companies for the supply of the hydrogen electrolyser and fuel cell and to design and construct of the plant. It is also looking at state and federal funding for the trial, while supporting the State Government’s Renewable Hydrogen Strategy by investigating the possibility of demonstrating the use of hydrogen as a future source of energy for the town.

“As part of our commitment to deliver cleaner, greener energy to our regional customers, we want to investigate the potential to develop a hydrogen demonstration plant to test the suitability and capability of hydrogen as a renewable energy source for electricity generation in the future,” Horizon Power Chief Executive Officer Stephanie Unwin said.

If the project is determined to be viable, construction would begin in February 2021. “Proving the reliability of such a hydrogen plant provides the opportunity to expand the plant to supply the full power requirements for the town in the future,” Urwin added.

Last year, the WA Government launched a strategy to set course for the state’s renewable hydrogen future with a focus on four strategic investment areas: export, use of renewable hydrogen in remote applications, blending in the gas network and use in transport. To support projects on ground, the authority last month opened a $10 million Renewable Hydrogen Fund and made cash available to feasibility studies, demonstration or capital works projects, to facilitate private investment.

Last week, the state government set aside $1.68 million in funding from the Renewable Hydrogen Fund toward the support of seven renewable hydrogen feasibility studies, including an electrolysis production plant and solar hydrogen for waste collection.

“Western Australia needs to explore how we can produce, use and provide energy to our international partners through clean and reliable sources – renewable energy via hydrogen provides a means to do this,” Regional Development Minister Alannah MacTiernan said. She noted the government received 19 feasibility study applications of which it chose seven, which confirmed the strong interest of developing a renewable hydrogen industry in WA.

On the ground, Canadian gas giant ATCO is already blending renewable hydrogen into the on-site natural gas network at its solar and battery hydrogen innovation hub in WA. The blend will be used throughout the Jandakot depot as the first step in exploring the potential of hydrogen for home use in gas appliances.

Last year, a massive green hydrogen production project was unveiled for Western Australia with Siemens on board as technology partner. The project proposed by Hydrogen Renewables Australia (HRA) aims to produce green hydrogen for local industry and export to Asia from up to 5,000 MW of combined wind and solar capacity.

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 ).

Green hydrogen can be produced through electrolysis from any low-cost energy source.

Image: Siemens

Hydrogen cost competitiveness is closer than previously thought and scaling up existing hydrogen technologies will deliver competitive low-carbon solutions across a wide range of applications by 2030, finds a new report published by Hydrogen Council. Yet, to reach this scale, there is a need for investment, policy alignment, and demand creation.

As scale-up of hydrogen production, distribution, as well as of equipment and component manufacturing continues, cost is projected to decrease by up to 50% by 2030 for a wide range of applications, making hydrogen competitive with other low-carbon alternatives and, in some cases, even conventional option, finds the report prepared by global consultancy McKinsey. To deliver on this opportunity, supporting policies will be required in key geographies, including Australia, together with investment support of around US$70 billion.

“Based on real cost data from the industry, the analysis shows that a number of hydrogen solutions can become competitive until 2030 already.” says Bernd Heid, Senior Partner at McKinsey & Company. “Out of 35 use cases analysed, at-scale hydrogen can be the lowest cost low-carbon solution in 22 use cases – such as in the steel industry and heating for existing buildings. And it can beat fossil-based solutions at scale in 9 use cases – for example in heavy-duty transport and trains.”

2030 promise

Strong fall in the cost of producing low carbon and renewable hydrogen is one of the main drivers of this cost trajectory and hydrogen produced via electrolysis is identified as one of the areas where investment until 2030 would make the biggest difference. According to the report, achieving competitive renewable hydrogen from electrolysis will require the deployment of aggregated 70 GW of electrolyzer capacity, with an implied cumulative funding gap with grey production of $US20 billion.

In an earlier analysis, Wood Mackenzie also identified 2030 as the year when green hydrogen, produced primarily by solar electrolysis, would reach cost parity. According to the consultancy, renewables hydrogen could reach parity in Australia, Germany, and Japan by 2030, based on US$30/MWh renewable electricity and 50% utilization hours for electrolyzers.

In production, the cost of low-carbon and/or renewable hydrogen production will fall drastically by up to 60% over the coming decade, the Hydrogen Council report states. This can be attributed to the falling costs of renewable electricity generation, scaling up of electrolyzer manufacturing, and the development of lower-cost carbon storage facilities. Although it identified the same drivers behind falling costs, the International Energy Agency (IEA) was more conservative in its forecast. Its earlier analysis showed that the cost of producing hydrogen from renewable electricity could fall around 30% by 2030.

“2020 marks the beginning of a new era for energy: as the potential for hydrogen to become part of our global energy system becomes a reality, we can expect fewer emissions and improved security and flexibility. This announces the decade of hydrogen,” said Benoît Potier, Chairman and CEO of Air Liquide and Co-chair of the Hydrogen Council. “A clean energy future with hydrogen is closer than we think, because the industry has been working hard on addressing key technology challenges.”

While often touted as the missing link in the energy transition, hydrogen has seen false dawns before. Declaring 2019 a critical year for hydrogen, the IEA said hydrogen was enjoying unprecedented momentum around the world. This was corroborated by the emergence of hydrogen roadmaps and strategies from around the world, which all suggested a large scale and rapid deployment of hydrogen technologies is expected from around 2030 onwards.

In Australia, state and federal energy ministers have given a tick of approval to the National Hydrogen Strategy prepared by chief scientist Alan Finkel and voiced support for a $370 million fund for green hydrogen projects. However, against high expectations of the country’s hydrogen export potential, The Australia Institute’s analysis has suggested that Australia has overhyped the potential demand for hydrogen exports by a factor of up to 11.

At the Friday meeting in Perth, the COAG Energy Council agreed to the National Hydrogen Strategy, which is expected to pave the way for a hydrogen economy that would enhance Australia’s energy security, create jobs and build an export industry valued in billions. The federal government used the meeting to announce $370 million would be directed to a new fund aimed at developing Australia’s hydrogen industry.

The money to bankroll green hydrogen projects will come from existing allocations to the Clean Energy Finance Corporation (CEFC) and Australian Renewable Energy Agency (ARENA), with the former tipping in $300 million and the latter $70 million. According to Energy Minister Angus Taylor, the funding will help Australia to realise its potential as a leading hydrogen supplier to key export markets, particularly in Asia.

Despite positive aspects, the National Hydrogen Strategy 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, Australia’s 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.

Notwithstanding the efforts by ACT Energy Minister Shane Rattenbury on Friday to change the strategy so it only supported green hydrogen, federal resources minister Matt Canavan said after the meeting the government would be encouraging all forms of hydrogen creation, including production using brown coal.

“A decade ago the fossil fuel industry promoted clean coal using CCS and now it is promoting hydrogen using the same unsuccessful technology. CCS projects have repeatedly failed to live up to promises, both domestically and globally, and missed their targets by a very large margin time and time again,” Merzanin said. “The only way to make hydrogen truly sustainable is to produce it using water and powered by renewable energy sources. Australia has time to establish and lead a global renewable hydrogen industry and should focus research and development efforts in that area exclusively.”

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