Australia could have an industrial scale hydrogen industry by 2030 if the government gives clear guidance on energy policy.
That’s the message from Woodside Energy CEO Peter Coleman, who says investment will only flow from overseas if the government acts now to encourage clean energy.
A carbon price is also needed to genuinely reduce carbon emissions, Coleman said. Otherwise high-emitters like coal-fired power will be rewarded to the detriment of renewables like wind, solar power and hydrogen.
Industrial scale hydrogen in Australia: green and blue
Addressing the Melbourne Mining Club, Coleman said Woodside’s Japanese and Korean customers want Australia to adopt carbon-neutral hydrogen power.
The ultimate goal is to produce ‘green’ hydrogen sourced from water. However, Coleman said Australia should first transition to ‘blue’ hydrogen produced from natural gas.
Australia must learn to ship, transport and distribute hydrogen effectively, he added.
Woodside could then access the abundant natural gas off Western Australia to create blue hydrogen.
Federal Energy Minister Angus Taylor has accused Coleman of self-interest. Woodside just wants to “sell more gas” Taylor told ABC Radio National.
Climate change problem cannot wait
The Woodside chief also said Australia needs to get serious about addressing climate change. The right vision and leadership will attract investment in new technology.
“By 2030, we think hydrogen could already be providing industrial-scale power,” Coleman said.
Australia must therefore draw on renewable resources like solar energy to make hydrogen a significant energy source for the world.
“In the absence of an appropriate carbon price, we risk a perverse outcome where the lowest cost of reliable supply into the market remains the greatest emitter of carbon, offsetting the benefits renewables offer.”
Solar power to drive hydrogen industry
Woodside observed that solar energy will also play a critical role in bulk production of industrial scale hydrogen.
Along with low-cost natural gas, renewable power could start a ‘blue’ hydrogen phase. This infrastructure will then pave the way for ‘green’ hydrogen from water.
South Korean car manufacturer Hyundai is keen to partner with large-scale solar installations in Queensland to develop hydrogen-powered cars.
Queensland leads Australia in utility-scale solar projects, according to the Clean Energy Council. In addition, the state accounts for more than half Australia’s $5 billion investment in large-scale solar.
