The fall in production and distribution costs and the continued evolution of hydrogen technology should accelerate the commercial attractiveness of green hydrogen in key areas of the economy, he noted.

However, large-scale development will be key to reducing installation and start-up costs, just as it has been for renewable energy.

The study’s findings will help the CEFC disburse up to $ 300 million that the federal government has allocated to its Hydrogen Advancement Fund.

It prioritizes potential projects that were included in the Australian Renewable Energy Agency’s recent green hydrogen funding round, which originally amounted to $ 70 million, but has been expanded to more than $ 100 million, spread among three companies, in Western Australia, Victoria and Tasmania.

Mr. Learmonth said CEFC is working closely with ARENA on projects that may provide funding opportunities for the bank.

Given the early stage of green hydrogen development, projects are likely to need grants from ARENA and / or state governments to be eligible for the type of debt financing provided by CEFC, which is required to target a commercial return on its investments, said Rupert Maloney, CEFC’s head of hydrogen.

By 2030, green hydrogen would also be competitive for mining vehicles and in the natural gas grid, and would move closer to ferries, regional aviation, ammonia and refining.

CEFC and ARENA’s funding mission has only recently been extended to include hydrogen, carbon capture and storage, and other low-emission technologies in a movement that labor elements are opposing. .

The report found that while green hydrogen is already competitive for ‘best case’ projects in remote energy, long-haul transport and buses, non-commercial hurdles still stand in the way. adoption, such as challenges with vehicle availability and supply chains.

By 2030, green hydrogen would also be competitive for mining vehicles and in the natural gas grid, and would move closer to ferries, regional aviation, ammonia and refining.

However, it could take until 2050 for green hydrogen to become cost competitive in industries such as steel mills, shipping and other areas, although those dates would be brought forward if customers were prepared to pay a premium for low carbon products or if market mechanisms offered subsidies.

“It’s an added benefit, or an advantage of the opportunity, as customers start paying green premiums or other market mechanisms are introduced to the world,” Mr. Maloney said.

While some green hydrogen advocates, such as mining billionaire Andrew Forrest, have much older dates for using green hydrogen and green ammonia in the manufacture and transportation of steel, the Advisian report suggests that these might be too ambitious.

“Some of these things, the report says, are a bit more distant, especially the outlook in shipping,” Learmonth said, adding that a major investment could accelerate this.

“When it comes to green steel, green aluminum or replacing gas in industrial processes, you still have to get a very competitive price for hydrogen to compete with gas, and this has also been identified in the government’s strategic document on hydrogen, which will take work. “

Separately, two new hydrogen technology hubs are to be created in Queensland, with a $ 100,000 investment from the state government. The two new clusters, at Gladstone and Toowoomba, are due to be announced Tuesday by National Energy Resources Australia, a federally funded body that supports the transition to cleaner energy.


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