Grattan Institute. (2023). Hydrogen: Hype, Hope, or Hard Work?. [PDF file]. Retrieved from https://grattan.edu.au/wp-content/uploads/2023/12/Hydrogen-hype-hope-or-hard-work-Grattan-Institute.pdf

1. Hydrogen’s Potential in Decarbonization and Renewable Energy Dependency:

• High energy content with potential for zero emissions.
• Reliance on renewable sources like solar and wind is crucial.
• Fluctuations in renewable energy supply can impact production rates and costs.
• Key to achieving truly green hydrogen.
• Aligns with global net-zero aspirations.

1. International Interest and Export Potential:

• Interest from countries like Japan, Korea, and the U.S.
• Australia’s potential to be a global leader and major exporter.
• Demand for hydrogen expected to increase globally.
• Need for strategic partnerships and significant investment in export infrastructure.
• Leveraging Australia’s vast renewable resources for competitive production.

1. Challenges in Handling and Transport & Storage Issues:

• Handling and transporting hydrogen is complex and costly.
• Hydrogen’s low density requires specialized infrastructure.
• Development of hydrogen pipeline network is critical.
• Technological advancements in liquefaction and compression needed.
• Significant investment required for efficient and safe transportation.

1. High Production Costs and Electrolyzer Cost:

• Zero-emission hydrogen production is expensive.
• Cost of renewable electricity and electrolyzers is high.
• Cost reduction in electrolyzers essential for competitiveness.
• Technological advancements expected to lower costs.
• Innovations in electrolyzer design could impact economic viability.

1. Selective Application and Targeted Applications:

• Focus on industries like ammonia, alumina, and iron ore processing.
• Best use cases are where hydrogen can replace fossil fuels.
• Less suitable where electric alternatives are more efficient.
• Collaboration needed to develop targeted applications.
• Clear environmental and economic advantages are key.

1. Green Premium and Government Support:

• “Green premium” entails higher costs for green hydrogen production.
• Government support crucial to overcome economic hurdles.
• Policies and subsidies can bridge the cost gap.
• Research and development funding essential.
• Public-private partnerships vital for infrastructure development.

1. Role of Carbon Pricing and Industry Policy & Sector-Specific Strategies:

• Carbon pricing affects economic viability of hydrogen.
• Tailored strategies required for different sectors.
• Understanding sector-specific challenges crucial.
• Collaboration needed for strategy development.
• Long-term planning and consistent policy frameworks essential.

1. CFDs as a Policy Tool:

• CFDs provide financial support for green hydrogen projects.
• Offer price stability and risk mitigation.
• Accelerate hydrogen adoption by making it financially viable.
• Bridge the gap between green hydrogen cost and market prices.
• Instrumental in attracting investment.

1. Future Uses and Strategic Planning:

• Identification of future potential uses of hydrogen.
• Need for strategic, integrated planning within broader energy policies.
• Focus on viability in decarbonization pathways.
• Importance of adapting to rapid structural changes.
• Alignment with broader energy and decarbonization policies.