PERTH (miningweekly.com) – Australia’s hydrogen industry could generate some A$11-billion a year in gross domestic product by 2050, and could create some 8 000 new jobs in that timeframe, federal Energy and Emissions Reduction Minister Angus Taylor said on Monday.
Speaking at the Australian Hydrogen conference, Taylor said currently, global demand for clean hydrogen was around 70-million tonnes a year, but that demand could increase by up to 20-million tonnes by 2030.
“By 2050, this could grow by a further 110-million tonnes to over 360-million tonnes a year, according to analysis that informed our National Hydrogen Strategy.
“It makes good economic sense for Australia to harness our resources and strengths to become a powerhouse for hydrogen production and exports,” Taylor told delegates.
The government has laid the groundwork for Australia’s clean hydrogen industry through a National Hydrogen Strategy, with Taylor saying that momentum had been building as the government delivered a Technology Investment Roadmap, its first Low Emissions Technology Statement, a A$1.9-billion investment package for future technologies, and bilateral partnerships with like-minded economies across the world.
“These initiatives will help us tackle our next challenge, which is to bring the cost of production down to make hydrogen competitive with higher emissions alternatives.
“We want to see hydrogen produced at under $2 per kilogram - or H2 under 2 for short. This is the point where hydrogen becomes competitive with higher emitting alternatives.
“For Australia, achieving H2 under 2 will be where the rubber meets the road. Industry will need to scale up quickly and cost effectively while reducing input and capital costs.
“It is only by achieving the efficiencies that come with scale that we will get costs down in the sector, making hydrogen competitive,” Taylor said.
“We will not have production at scale without the demand alongside it, providing revenue for the sector, and reducing investment risk. Projects will require significant capital inflows, vast amounts of land, a hydrogen-ready workforce and large amounts of water. These are available, but mobilising them will require considerable effort by industry and governments over the next decade.”
The Minister said that the federal government was making significant investments that will help Australia tackle these challenges head-on, however, he added that the industry was also required to co-invest to allow scale-up as quickly as possible.
“A successful hydrogen industry will need to be built on strong collaboration. It will be enabled by our rich energy and land resources, world-class researchers, reliable markets, robust production systems, and international partnerships.
“We’re making sure Australia has all the necessary foundational and enabling structures in place to support a viable industry.”