Viw Magazine

Business Coach

  • Written by Frank Jotzo, Director, Centre for Climate and Energy Policy, Australian National University
Hydrogen from renewable energy such as solar can be produced with zero emissions. Lucas Coch/AAP

Using hydrogen as a clean fuel is an idea whose time may be coming. For Australia, producing hydrogen is alluring: it could create a lucrative new domestic industry and help the world achieve a carbon-free future.

The national hydrogen strategy released last month argues Australia should be at the forefront of the global hydrogen race. Led by Chief Scientist Alan Finkel, the strategy takes a technology-neutral approach, by not favouring any one way of making “clean” hydrogen.

But it matters whether hydrogen is produced from renewable electricity or fossil fuels. While the fossil fuel route is currently cheaper, it could end up emitting substantial amounts of carbon dioxide.

Dr Finkel and Energy Minister Angus Taylor ahead of a meeting about the hydrogen strategy. RICHARD WAINWRIGHT/AAP

Not all ‘clean’ hydrogen is the same

Hydrogen can be produced using electricity through electrolysis, which splits water into hydrogen and oxygen. When renewable electricity is used, this does not produce any carbon dioxide and is known as green hydrogen.

Hydrogen can also be produced from coal or gas. This process releases carbon dioxide. Most hydrogen produced today is made this way.

Some – but critically, not all – carbon dioxide from this process can be trapped and stored in underground reservoirs – a process known as carbon capture and storage (CCS).


Read more: 145 years after Jules Verne dreamed up a hydrogen future, it has arrived


But CCS is technically complex and expensive. Only two plants producing hydrogen from fossil fuels currently use it: one in Canada, with a carbon dioxide capture rate of 80%, and one in the US with a lower retention rate.

In Australia, the only operating large-scale CCS project is Chevron’s Gorgon gas (not hydrogen) project in Western Australia. After a significant delay, and three years since the project started supplying gas, carbon capture and storage began this year.

High carbon-capture rates are not assured

The hydrogen strategy uses the term “clean hydrogen” for hydrogen produced from renewable electricity, and from coal or gas with carbon capture. And it assumes a “best-case” scenario where 90-95% of carbon dioxide is captured from fossil fuels.

Such rates are technically possible, but have not been achieved to date. Lower capture rates are not examined in the strategy.

At 90-95% capture rates, coal- and gas-based hydrogen is much less carbon-intensive than traditional fossil fuel uses. But a capture rate of 60% means hydrogen from coal has a similar emissions-intensity to burning natural gas directly.

Emissions intensity of fuels with and without CCS. Hydrogen numbers are for production only; emissions intensity is higher for exported hydrogen. Source: authors’ calculations, using data from the International Energy Agency and US Energy Information Administration

The national strategy does not describe a mechanism to ensure best-case capture rates are met. Production of hydrogen might ramp up much faster than the facilities required to capture emissions, allowing large amounts of greenhouse gas to enter the atmosphere – similar to the Gorgon case.

Another risk is that carbon capture will not be able to achieve the best-case rates for technical or cost reasons.

Towards zero-emissions exports

Countries including Japan, South Korea and Germany are exploring the possibility of using hydrogen in a range of ways, including in power generation, transportation, heating and industrial processes.

Some future importers may not care how cleanly our hydrogen is produced, but others might.

To illustrate why carbon-free exports matter, we calculated emissions if Australia produced 12 million tonnes of hydrogen for export per year – equivalent to about 30% of our current liquified natural gas exports and in line with production estimates in the national strategy.


Read more: Enough ambition (and hydrogen) could get Australia to 200% renewable energy


It would require roughly 37 million tonnes of natural gas or 88 million tonnes of coal. If 90% of carbon dioxide was captured, emissions from gas would total 1.9% of Australia’s current (2018) annual greenhouse gas emissions, or 4.4% using coal.

If only 60% of the carbon dioxide was captured, hydrogen from gas and coal would account for an additional 7.8% and 17.9% of current national emissions respectively – making it much harder for Australia to achieve existing and future emissions targets.

Where to invest

Right now, producing hydrogen from fossil fuels is cheaper than from renewables, even with carbon capture and storage.

Australia also has large and ready reserves of brown coal in Victoria’s Latrobe Valley that will not be used by the declining coal-fired power industry. Captured carbon could be stored under Bass Strait. And the nation’s plentiful gas reserves could be turned into hydrogen, in addition to or partly replacing liquefied natural gas exports. So, it is unsurprising that the national strategy left all options on the table.

A diagram showing the myriad potential uses for hydrogen. National hydrogen strategy

Read more: Hydrogen fuels rockets, but what about power for daily life? We're getting closer


However establishing hydrogen production facilities with carbon capture would mean huge spending on equipment with very long lifetimes. This is risky, as the capital would be wasted if the market for emissions-intensive hydrogen collapsed, either through public attitudes or a global imperative to move to zero-emissions energy systems.

The world is already far off the pace needed to meet its emissions reduction targets, and must ultimately get to net-zero to prevent the worst climate change impacts.

Australia should invest in research and development to make green hydrogen cheaper. This requires driving reductions in the cost of electrolysis, and further reductions in large-scale renewable energy production. It could lead to big benefits for the climate, and Australia’s future export economy.

Frank Jotzo leads research projects on energy and climate change policy and economics. There are no conflicts of interest regarding this article arising from any funding received or any of the author's affiliations. He is involved in the ANU Grand Challenge Zero-Carbon Energy for Asia-Pacific initiative and co-leads the Energy Transition Hub, an Australian-German initiative supported by both governments.

Fiona J Beck receives funding from Australian Renewable Energy Agency, and is involved in the ANU Grand Challenge Zero-Carbon Energy for the Asia Pacific initiative

Thomas Longden is involved in the ANU Grand Challenge Zero-Carbon Energy for Asia-Pacific initiative.

Authors: Frank Jotzo, Director, Centre for Climate and Energy Policy, Australian National University

Read more http://theconversation.com/for-hydrogen-to-be-truly-clean-it-must-be-made-with-renewables-not-coal-128053

Important Instructions for Australians Living in Camper Trailers

Living in a camper trailer offers Australians a unique way to embrace adventure and freedom while exploring the vast and beautiful landsca...

Maintaining Your Mini Digger: Tips for Longevity and Performance

If you're a proud owner or operator of a mini digger in Australia, you understand the importance of keeping your equipment in top-notch co...

Transform Your Business To Success: The Role Of Branding Agencies In Melbourne

In the bustling city of Melbourne, where every corner tells a story of innovation and creativity, the importance of branding cannot be o...

Revealing The Timeless Appeal Of Ladies' Bodysuits

Fashion has always been a canvas for self-expression, a realm where innovation and tradition intertwine to create garments that not only a...

What Is Crude Oil, and Why Is It Important to Investors?

Crude oil is the lifeblood of the global economy. As an investor, understanding the ins and outs of this vital commodity can be crucial to...

A Sweet Tooth's Guide to the Best Cakes in Melbourne

Indulge your sweet tooth in Melbourne's finest cakes! Brunetti offers decadent chocolate delights like Ciambella Chocolate Teacakes. Mel...

Alan Williams' Impact on Chicago's Defense: Analyzing Key Changes and Improvements

When Alan Williams stepped onto the field as the defensive coordinator for Chicago, expectations were high. His reputation for crafting di...

Understanding the Different Types of Pickup Truck Car Covers

Picking the right truck cover starts with understanding the various types available on the market. Each type is designed to address specif...

Understanding Commercial Plumbing in Adelaide

Introduction In the bustling city of Adelaide, where businesses thrive across diverse sectors, the seamless operation of commercial facil...

Driving into the Future: The Evolution of the Automotive Market in Australia - Trends and Predictions

Examining “the evolution of the automotive market in Australia: trends and predictions” reveals a swift embrace of electric vehicles a...

Crocs: Defying Fashion Norms and Redefining Individuality

In the realm of contemporary footwear, a singular item has emerged as a polarizing yet undeniably iconic choice: the versatile rubber shoe...

Benefits of Network Monitoring Devices in Businesses

In an era where seamless connectivity underpins business operations, ensuring a robust and secure network is paramount for any enterprise...

Tips for Staying Socially Active as a Senior

Staying socially active as a senior can be a challenging task. It becomes particularly difficult as mobility decreases, and friends and fa...

The Benefits of Living in Nature

Have you ever dreamed of buying a mountain property for sale, living immersed in nature, and being surrounded by the beauty of trees and w...

Affordable and Chic: A Guide to Stylish Splashback Tiling on a Budget

When it comes to kitchen renovations, splashback tiling stands out as a game-changer. Not only does it serve a practical purpose by protec...

How to Choose the Perfect Trailer for Your Needs

Whether you're hauling equipment for work or embarking on a weekend adventure, selecting the right trailer is essential. With a myriad of ...

Is There a downside to Taking collagen peptides? Understanding the Side Effects for a Healthier You

Introduction  Lately, everyone seems to be talking about collagen peptides. They're a type of protein that comes from collagen, a key pa...

The Best Materials for Living Room Plantation Shutters: A Comparison

Plantation shutters are a timeless and elegant window treatment that adds both style and functionality to any living space. When it comes ...

Top 5 Home Renovations That Increase Property Value

Enhancing the value of your property is a common goal for homeowners, whether they plan to sell soon or simply want to boost their investm...

Discover the Elegance of Sheer Curtains in Melbourne: A Guide to Custom-Made Sheer Elegance

When it comes to enhancing the aesthetics and functionality of your living spaces, the right choice of window treatments can make all the ...

Tomorrow Business Growth