NSW plan seen as ‘leap forward’ for hydrogen
“They currently have high production costs, suffer from limited enabling infrastructure, can cause significant energy losses from production to consumption and, in most cases, must be handled more carefully than liquid fuels. traditional. “
Industry representatives from dozens of Australian hydrogen developers such as Ampol, Woodside Petroleum, Origin Energy and Wesfarmers said planning, funding and targets would be key to boosting the needed investment in electrolysers, pipelines and other infrastructure needed to develop the industry.
“Australia has a tremendous opportunity to lead the world in the production, use and export of hydrogen and the NSW government has shown the leadership needed to spur the creation of the clean hydrogen industry.” said Australian Hydrogen Council CEO Fiona Simon.
“Plans and funding like this will mean Australia should not miss the boat on international opportunities and, instead, will be well positioned to be a leading producer and user of hydrogen in Australia and in the world.”
The NSW plan aims to dramatically reduce the cost of green hydrogen from $ 8.60 per kilogram to $ 2.80 by the end of the decade. Yet the target cost would remain above the federal government’s stated goal of making green hydrogen less than $ 2 per kilogram, at which point it believes it would be competitive.
Among the incentives contained in the NSW Hydrogen Plan is a 90% exemption from grid charges for green hydrogen producers who connect to parts of the grid with unused capacity.
Transgrid, which manages and operates New South Wales’ high-coal power transmission system, said Australia could potentially produce the world’s cheapest hydrogen and become a “superpower” in the world. green energy if the nation embarked on efforts to meet the Paris Agreement’s ambitious goal of limiting temperature. rises to 1.5 degrees.
“Renewable energy resources could enable Australia to produce some of the cheapest green hydrogen in the world, dropping to $ 1 / kg by 2050 at major hydrogen production sites on the south and east coasts from Australia, ”said Transgrid’s head of grid planning and operations. says Kasia Kulbacka.
University of Victoria’s Victoria Energy Policy Center director Bruce Mountain said it was likely that hydrogen could eventually help replace some fossil-fuel-based energy, export revenue and jobs. But he warned that hydrogen technology was in its infancy and it was not yet clear which of its potential applications would eventually become commercially viable.
Rapid improvements in battery technology may have already replaced the role of hydrogen fuel cells in cars, but hydrogen may play a role as a transportation fuel as well as in the manufacture of steel for cars. fertilizer, said Professor Mountain.
Rob Wheales, managing director of Australian gas pipeline APA Group, said it was “absolutely clear” that Australia and New South Wales have natural competitive advantages in hydrogen.
“While there are economic challenges and the science of developing a clean hydrogen economy continues to develop, Australia is ahead with an abundance of wind and solar power to power the world. production of renewable ‘green’ hydrogen and an existing network of pipelines potentially capable of transporting hydrogen for domestic use or for export, ”said Mr. Wheales.
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