Green Energy: Hydrogen
• The Australian government has recognized the potential of hydrogen and has set ambitious targets to develop a hydrogen industry in the country. In 2019, the national hydrogen strategy was launched, aiming to establish Australia as a major global player in the market by 2030. Furthermore, Australia is strategically well placed to export hydrogen to global markets. The country has signed numerous agreements with many different nations to explore opportunities for hydrogen exports.

• Australia holds a significant position as a major exporter of both fossil fuels and critical minerals essential for various clean energy technologies. Transitioning successfully to clean energy not only aligns with its environmental goals but also has the potential to drive economic diversification and industrial expansion. This shift can bolster Australia's resilience in the face of global energy market disruptions, as highlighted in a recent report by the International Energy Agency (IEA).

• Australia's wealth of renewable energy resources, particularly its exceptional solar irradiance in regions like Northern Territory, Queensland, and Western Australia, coupled with promising wind energy sites in states like Victoria and Tasmania, position the country as an ideal hub for green hydrogen production.

• The decreasing costs associated with solar PV systems and electrolysis technologies further enhance the viability of widespread green hydrogen adoption in Australia.

• The Australian Government's investment of more than $500 million in regional hydrogen hubs is a significant step towards advancing the hydrogen industry in the country. These hubs, located in regions like Pilbara, Kwinana, Hunter, Bell Bay, Gladstone, and Port Bonython, aim to bring together hydrogen producers, users, and potential exporters from various sectors.

• Clean hydrogen is anticipated to play a pivotal role in most de-carbonization scenarios by 2050. According to the International Energy Agency, clean hydrogen production will need to double by 2030 and increase six-fold by 2050 to meet global de-carbonization targets. This represents a significant surge from the current annual production levels of around 90 million tonnes (Mt) to over 530 Mt.

Hydrogen can be critical in the green energy space, but there are some potential challenges persisting in the production and development of it.

• The current production methods for green hydrogen often involve electrolysis powered by renewable energy sources. While the technology is evolving, it remains relatively expensive compared to traditional methods of hydrogen production, primarily from natural gas.

• The infrastructure for hydrogen production, storage, transportation, and distribution is underdeveloped compared to the existing fossil fuel infrastructure. Building a robust network for transporting hydrogen or ammonia efficiently is a significant challenge.

Australia has several companies that are active in the hydrogen industry, from producers and suppliers to technology developers and investors. Australia has set a target of producing hydrogen at less than $2 per kilogram by 2030, making it cost-competitive with other energy sources. There are some ASX companies are foraying their venture in contemplating the world’s green energy production goal. Let’s look at them

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