EXPORTING GREEN HYDROGEN FROM AUSTRALIAWhere’s the opportunity? Green hydrogen is hydrogen generated by renewable energy or from low-carbon power. The production of this clean energy emits significantly lower carbon emissions than grey hydrogen. Australia is competitively placed to be a major global producer and exporter of green hydrogen, thanks to its abundant renewable resources and established ports for existing fossil fuel exports. Governmental support is also dedicated to make Australia a major supplier of green hydrogen globally. Australian government has already announced $500 million in funding to support hydrogen projects. In 2020, the federal government fast tracked approval for the world’s largest planned renewable energy export facility in the Pilbara region. Global hydrogen demand is predicted to continue growing, and by 2050, demand could vary from 150 to 500 million metric tonnes per year, depending on global climate ambitions and sectoral developments. Our Export Tips Product The majority of hydrogen produced worldwide is inexpensive grey hydrogen made from natural gas. However, as a clean energy alternative, green hydrogen is gaining traction for being a better long-term solution to help decarbonize economies. Applications of hydrogen as an energy source include transport, manufacturing or electricity production. Australian green hydrogen producers have an edge over foreign competitors for two main reasons: (1) possessing abundant natural resources to produce green hydrogen; (2) having a well-established connection with Asia’s major energy importers. Price Globally, although the cost of production of green hydrogen is expected to continue falling, it is still more expensive than conventional grey hydrogen: AU$4-12/kg for green hydrogen compared to AU$1.5~3/kg for grey hydrogen. Australian green hydrogen, costing between AU$4-7/kg, is at the low end of global ranges thanks to its abundant low-cost renewable resources. On the long run, competitive pricing could be a key advantage of Australian green hydrogen. Australian National University predict that, as cost of production falls, Australian green hydrogen could equal the price of conventional and grey hydrogen by 2030, which would be cost-competitive with both fossil fuels. Promotion Sustainability, flexibility and multi-usage capability are major values to communicate when promoting green hydrogen.
- Sustainability: Highlight green hydrogen’s sustainable production process of using renewable energy and sustainably sourced water, which in turn helps decarbonise future energy production.
- Flexibility: As a flexible energy source, green hydrogen can be used immediately or be stored and transported for later use.
- Multi-usage capability: Green hydrogen can (1) support domestic energy needs; (2) be used as a clean transport fuel; (3) provide electricity to the grid, and (4) offset the carbon from manufacturing processes in factories.