State of the Hydrogen Industry

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Hydrogen

News and Insight

Platts launches hydrogen pump prices in Germany, Japan and California

S&P Global Platts has launched hydrogen pump price assessments in Germany, Japan and California, starting Sept. 2. The first monthly prices in Germany were assessed…

News and Insight

Platts launches hydrogen pump prices in Germany, Japan and California

S&P Global Platts has launched hydrogen pump price assessments in Germany, Japan and California, starting Sept. 2.

The first monthly prices in Germany were assessed at Eur9.50/kg ($11.26/kg), with prices in Japan and California set to be published later in the day.

The markets are the top three regions for hydrogen refueling stations globally, with 134 active stations in Japan, 90 in Germany and 48 in California, data from S&P Global Platts Analytics Hydrogen Market Monitor showed. A further 23 are planned in Japan, with 17 in Germany and 16 in California.

“Globally, Japan, Germany and California are three of the market leaders with the most active and planned stations,” S&P Global Platts EMEA pricing lead Jeff McDonald said.

“Other countries are catching up as well as economics improve either through subsidies, tax incentives or technology improvements. Along the way, pricing transparency will be critical.”

In California, Platts will conduct a monthly survey of pump prices from hydrogen fuel station operators across the state. The prices in Germany and Japan will be republished from posted prices from hydrogen station consortium H2 Mobility Deutschland and gas company Iwatani, respectively.

California leads the way in the US, with favorable legislation and carbon credits giving the fuel a head start in the state.

Platts, which expects the hydrogen retail market to become more dynamic over time, said its prices would increase transparency and provide an indicator of market adoption in the sector.

The EU aims to install hydrogen fueling stations every 150 km along the core Trans-European Transport Network routes as part of its so-called ‘Fit for 55’ package of measures to reduce CO2 emissions by 55% by 2030, from 1990 levels.

Germany has the most hydrogen refueling stations in Europe.

The hydrogen pump prices in Germany of $11.26/kg across the H2 Mobility network of public filling stations, is substantially lower than in the UK, for example.

In the UK, hydrogen refueling at stations run by ITM Power, which operates seven of the 11 operational public stations in the country, costs GBP12/kg ($16.55/kg), the company told Platts Aug. 12.

Fuel consumption

1 kg of hydrogen would power a vehicle for about 100 km, an H2 Mobility spokesperson told Platts Aug. 27, making fuel costs comparable with a gasoline-powered car consuming 7 liters per 100 km.

In the US, average fuel consumption for light-duty vehicles was 9.4 liters/100 km in 2018, according to the International Energy Agency, an improvement of 0.8% on the year.

In Europe, average fuel consumption was 5.1 liters/100 km in 2018.

“The global fuel cell electric vehicles fleet now exceeds 38,000 units, up 6.5% since last quarter, with the US still holding the largest fleet at 10,235 units, followed by South Korea (9,068), China (7,718), and Japan (4,422),” S&P Global Platts Analytics said in its latest Hydrogen Market Monitor, published June 29.

“France’s quarter-over-quarter growth resulted from adding 600 passenger vehicles to support plans to have 10,000 hydrogen-powered taxis before the 2024 Olympics, and New Zealand ordered 1,500 FCEV long-haul trucks.”

However, while the fuel cell electric vehicle fleets in the US and South Korea are dominated by passenger vehicles, the fuel demand from FCEVs in China is much greater, with the market largely composed of buses and commercial trucks.

Hydrogen for transport is expected to play a much larger role in these segments, along with potentially shipping and aviation, which are much more difficult to directly electrify.

Hydrogen

News and Insight

Platts launches new Australia hydrogen prices

News and Insight

Platts launches new Australia hydrogen prices

S&P Global Platts has launched new daily cost-based prices of hydrogen in Australia, from Aug. 16.

Platts has previously launched cost-based prices for hydrogen in North America, Europe and Japan. The new addition extends this suite of prices to include one of the expected production hubs of hydrogen.

The new prices reflect the daily cost of hydrogen production via the following five pathways: proton exchange membrane (PEM) electrolysis, alkaline electrolysis, steam methane reforming with carbon capture and sequestration, coal gasification with CCS, and lignite gasification with CCS. For both PEM and alkaline electrolysis, daily hydrogen prices will be published for the following states: New South Wales, Queensland, South Australia, Tasmania, Victoria and Western Australia. Daily hydrogen assessments for steam methane reforming with CCS will be published for Western Australia, based on coal gasification for New South Wales and Queensland, and for lignite gasification for Victoria.

Platts publishes a set of hydrogen prices reflecting feedstock costs alone, as well as a second set including additional assumptions for capital expenses (CapEx). Prices are published in A$/kg, A$/MMBtu, $/kg, and $/MMBtu.

Electricity costs are based on daily average Australian spot power prices per region from the National Electricity Market (New South Wales, Queensland, South Australia, Tasmania, Victoria) and the Wholesale Electricity Market (Western Australia), both operated by the Australian Energy Market Operator. Electricity transmission costs are not added to these prices.

The assumptions for coal and lignite gasification are based on industry research, including the International Energy Agency’s The Future of Hydrogen and Australia’s Commonwealth Scientific and Industrial Research Organisation (CSIRO)’s National Hydrogen Roadmap. Coal and lignite prices will be based on the Platts FOB Newcastle daily assessments, considering the energy intensity difference and prevalent price spread between coal and lignite.

Australian natural gas prices for the SMR with CCS path are based on Platts FOB Australia LNG prices, less a gasification cost based on market research.

Electrolysis assumptions for PEM and alkaline are based on market research including IEA’s The Future of Hydrogen and CSIRO’s National Hydrogen Roadmap.

Daily water prices would be based on market research including CSIRO’s National Hydrogen Roadmap.

Due to the timing and availability of major input data points, hydrogen assessments will be published the business day after these data inputs become available and will be databased against the date of inputs. In line with availability of major inputs, the assessments will follow the Singapore holiday schedule.

The published prices are as following:

Description Symbol

Hydrogen New South Wales Coal Gasification with CCS A$/kg HYAAA00

Hydrogen New South Wales Coal Gasification with CCS (inc. CAPEX) A$/kg HYAAB00

Hydrogen New South Wales Coal Gasification with CCS $/kg HYAAC00

Hydrogen New South Wales Coal Gasification with CCS (inc. CAPEX) $/kg HYAAD00

Hydrogen New South Wales Coal Gasification with CCS A$/MMBtu HYAAE00

Hydrogen New South Wales Coal Gasification with CCS (inc. CAPEX) A$/MMBtu HYAAF00

Hydrogen New South Wales Coal Gasification with CCS $/MMBtu HYAAG00

Hydrogen New South Wales Coal Gasification with CCS (inc. CAPEX) $/MMBtu HYAAH00

Hydrogen Queensland Coal Gasification with CCS A$/kg HYAAI00

Hydrogen Queensland Coal Gasification with CCS (inc. CAPEX) A$/kg HYAAJ00

Hydrogen Queensland Coal Gasification with CCS $/kg HYAAK00

Hydrogen Queensland Coal Gasification with CCS (inc. CAPEX) $/kg HYAAL00

Hydrogen Queensland Coal Gasification with CCS A$/MMBtu HYAAM00

Hydrogen Queensland Coal Gasification with CCS (inc. CAPEX) A$/MMBtu HYAAN00

Hydrogen Queensland Coal Gasification with CCS $/MMBtu HYAAO00

Hydrogen Queensland Coal Gasification with CCS (inc. CAPEX) $/MMBtu HYAAP00

Hydrogen Victoria Lignite Gasification with CCS A$/kg HYAAQ00

Hydrogen Victoria Lignite Gasification with CCS (inc. CAPEX) A$/kg HYAAR00

Hydrogen Victoria Lignite Gasification with CCS $/kg HYAAS00

Hydrogen Victoria Lignite Gasification with CCS (inc. CAPEX) $/kg HYAAT00

Hydrogen Victoria Lignite Gasification with CCS A$/MMBtu HYAAU00

Hydrogen Victoria Lignite Gasification with CCS (inc. CAPEX) A$/MMBtu HYAAV00

Hydrogen Victoria Lignite Gasification with CCS $/MMBtu HYAAW00

Hydrogen Victoria Lignite Gasification with CCS (inc. CAPEX) $/MMBtu HYAAX00

Hydrogen Western Australia SMR with CCS A$/kg HYAAY00

Hydrogen Western Australia SMR with CCS (inc. CAPEX) A$/kg HYAAZ00

Hydrogen Western Australia SMR with CCS $/kg HYABA00

Hydrogen Western Australia SMR with CCS (inc. CAPEX) $/kg HYABB00

Hydrogen Western Australia SMR with CCS A$/MMBtu HYABC00

Hydrogen Western Australia SMR with CCS (inc. CAPEX) A$/MMBtu HYABD00

Hydrogen Western Australia SMR with CCS $/MMBtu HYABE00

Hydrogen Western Australia SMR with CCS (inc. CAPEX) $/MMBtu HYABF00

Hydrogen New South Wales PEM Electrolysis A$/kg HYABG00

Hydrogen New South Wales PEM Electrolysis (inc. CAPEX) A$/kg HYABH00

Hydrogen New South Wales PEM Electrolysis $/kg HYABI00

Hydrogen New South Wales PEM Electrolysis (inc. CAPEX) $/kg HYABJ00

Hydrogen New South Wales PEM Electrolysis A$/MMBtu HYABK00

Hydrogen New South Wales PEM Electrolysis (inc. CAPEX) A$/MMBtu HYABL00

Hydrogen New South Wales PEM Electrolysis $/MMBtu HYABM00

Hydrogen New South Wales PEM Electrolysis (inc. CAPEX) $/MMBtu HYABN00

Hydrogen Queensland PEM Electrolysis A$/kg HYABO00

Hydrogen Queensland PEM Electrolysis (inc. CAPEX) A$/kg HYABP00

Hydrogen Queensland PEM Electrolysis $/kg HYABQ00

Hydrogen Queensland PEM Electrolysis (inc. CAPEX) $/kg HYABR00

Hydrogen Queensland PEM Electrolysis A$/MMBtu HYABS00

Hydrogen Queensland PEM Electrolysis (inc. CAPEX) A$/MMBtu HYABT00

Hydrogen Queensland PEM Electrolysis $/MMBtu HYABU00

Hydrogen Queensland PEM Electrolysis (inc. CAPEX) $/MMBtu HYABV00

Hydrogen South Australia PEM Electrolysis A$/kg HYABW00

Hydrogen South Australia PEM Electrolysis (inc. CAPEX) A$/kg HYABX00

Hydrogen South Australia PEM Electrolysis $/kg HYABY00

Hydrogen South Australia PEM Electrolysis (inc. CAPEX) $/kg HYABZ00

Hydrogen South Australia PEM Electrolysis A$/MMBtu HYACA00

Hydrogen South Australia PEM Electrolysis (inc. CAPEX) A$/MMBtu HYACB00

Hydrogen South Australia PEM Electrolysis $/MMBtu HYACC00

Hydrogen South Australia PEM Electrolysis (inc. CAPEX) $/MMBtu HYACD00

Hydrogen Tasmania PEM Electrolysis A$/kg HYACE00

Hydrogen Tasmania PEM Electrolysis (inc. CAPEX) A$/kg HYACF00

Hydrogen Tasmania PEM Electrolysis $/kg HYACG00

Hydrogen Tasmania PEM Electrolysis (inc. CAPEX) $/kg HYACH00

Hydrogen Tasmania PEM Electrolysis A$/MMBtu HYACI00

Hydrogen Tasmania PEM Electrolysis (inc. CAPEX) A$/MMBtu HYACJ00

Hydrogen Tasmania PEM Electrolysis $/MMBtu HYACK00

Hydrogen Tasmania PEM Electrolysis (inc. CAPEX) $/MMBtu HYACL00

Hydrogen Victoria PEM Electrolysis A$/kg HYACM00

Hydrogen Victoria PEM Electrolysis (inc. CAPEX) A$/kg HYACN00

Hydrogen Victoria PEM Electrolysis $/kg HYACO00

Hydrogen Victoria PEM Electrolysis (inc. CAPEX) $/kg HYACP00

Hydrogen Victoria PEM Electrolysis A$/MMBtu HYACQ00

Hydrogen Victoria PEM Electrolysis (inc. CAPEX) A$/MMBtu HYACR00

Hydrogen Victoria PEM Electrolysis $/MMBtu HYACS00

Hydrogen Victoria PEM Electrolysis (inc. CAPEX) $/MMBtu HYACT00

Hydrogen Western Australia PEM Electrolysis A$/kg HYACU00

Hydrogen Western Australia PEM Electrolysis (inc. CAPEX) A$/kg HYACV00

Hydrogen Western Australia PEM Electrolysis $/kg HYACW00

Hydrogen Western Australia PEM Electrolysis (inc. CAPEX) $/kg HYACX00

Hydrogen Western Australia PEM Electrolysis A$/MMBtu HYACY00

Hydrogen Western Australia PEM Electrolysis (inc. CAPEX) A$/MMBtu HYACZ00

Hydrogen Western Australia PEM Electrolysis $/MMBtu HYADA00

Hydrogen Western Australia PEM Electrolysis (inc. CAPEX) $/MMBtu HYADB00

Hydrogen New South Wales Alkaline Electrolysis A$/kg HYADC00

Hydrogen New South Wales Alkaline Electrolysis (inc. CAPEX) A$/kg HYADD00

Hydrogen New South Wales Alkaline Electrolysis $/kg HYADE00

Hydrogen New South Wales Alkaline Electrolysis (inc. CAPEX) $/kg HYADF00

Hydrogen New South Wales Alkaline Electrolysis A$/MMBtu HYADG00

Hydrogen New South Wales Alkaline Electrolysis (inc. CAPEX) A$/MMBtu HYADH00

Hydrogen New South Wales Alkaline Electrolysis $/MMBtu HYADI00

Hydrogen New South Wales Alkaline Electrolysis (inc. CAPEX) $/MMBtu HYADJ00

Hydrogen Queensland Alkaline Electrolysis A$/kg HYADK00

Hydrogen Queensland Alkaline Electrolysis (inc. CAPEX) A$/kg HYADL00

Hydrogen Queensland Alkaline Electrolysis $/kg HYADM00

Hydrogen Queensland Alkaline Electrolysis (inc. CAPEX) $/kg HYADN00

Hydrogen Queensland Alkaline Electrolysis A$/MMBtu HYADO00

Hydrogen Queensland Alkaline Electrolysis (inc. CAPEX) A$/MMBtu HYADP00

Hydrogen Queensland Alkaline Electrolysis $/MMBtu HYADQ00

Hydrogen Queensland Alkaline Electrolysis (inc. CAPEX) $/MMBtu HYADR00

Hydrogen South Australia Alkaline Electrolysis A$/kg HYADS00

Hydrogen South Australia Alkaline Electrolysis (inc. CAPEX) A$/kg HYADT00

Hydrogen South Australia Alkaline Electrolysis $/kg HYADU00

Hydrogen South Australia Alkaline Electrolysis (inc. CAPEX) $/kg HYADV00

Hydrogen South Australia Alkaline Electrolysis A$/MMBtu HYADW00

Hydrogen South Australia Alkaline Electrolysis (inc. CAPEX) A$/MMBtu HYADX00

Hydrogen South Australia Alkaline Electrolysis $/MMBtu HYADY00

Hydrogen South Australia Alkaline Electrolysis (inc. CAPEX) $/MMBtu HYADZ00

Hydrogen Tasmania Alkaline Electrolysis A$/kg HYAEA00

Hydrogen Tasmania Alkaline Electrolysis (inc. CAPEX) A$/kg HYAEB00

Hydrogen Tasmania Alkaline Electrolysis $/kg HYAEC00

Hydrogen Tasmania Alkaline Electrolysis (inc. CAPEX) $/kg HYAED00

Hydrogen Tasmania Alkaline Electrolysis A$/MMBtu HYAEE00

Hydrogen Tasmania Alkaline Electrolysis (inc. CAPEX) A$/MMBtu HYAEF00

Hydrogen Tasmania Alkaline Electrolysis $/MMBtu HYAEG00

Hydrogen Tasmania Alkaline Electrolysis (inc. CAPEX) $/MMBtu HYAEH00

Hydrogen Victoria Alkaline Electrolysis A$/kg HYAEI00

Hydrogen Victoria Alkaline Electrolysis (inc. CAPEX) A$/kg HYAEJ00

Hydrogen Victoria Alkaline Electrolysis $/kg HYAEK00

Hydrogen Victoria Alkaline Electrolysis (inc. CAPEX) $/kg HYAEL00

Hydrogen Victoria Alkaline Electrolysis A$/MMBtu HYAEM00

Hydrogen Victoria Alkaline Electrolysis (inc. CAPEX) A$/MMBtu HYAEN00

Hydrogen Victoria Alkaline Electrolysis $/MMBtu HYAEO00

Hydrogen Victoria Alkaline Electrolysis (inc. CAPEX) $/MMBtu HYAEP00

Hydrogen Western Australia Alkaline Electrolysis A$/kg HYAEQ00

Hydrogen Western Australia Alkaline Electrolysis (inc. CAPEX) A$/kg HYAER00

Hydrogen Western Australia Alkaline Electrolysis $/kg HYAES00

Hydrogen Western Australia Alkaline Electrolysis (inc. CAPEX) $/kg HYAET00

Hydrogen Western Australia Alkaline Electrolysis A$/MMBtu HYAEU00

Hydrogen Western Australia Alkaline Electrolysis (inc. CAPEX) A$/MMBtu HYAEV00

Hydrogen Western Australia Alkaline Electrolysis $/MMBtu HYAEW00

Hydrogen Western Australia Alkaline Electrolysis (inc. CAPEX) $/MMBtu HYAEX00

The new assessments are published in the Platts pricing database, and on Platts Dimensions Pro from Aug. 16 onwards.

Please send all feedback, comments or questions to hydrogenassessments@spglobal.com and pricegroup@spglobal.com. For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make comments not marked as confidential available upon request.

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Feature: Hydrogen targets in EU 2030 climate package will need huge renewable power

The European Commission’s 2030 renewable hydrogen targets will require huge amounts of renewable power generation, amounting to around half the EU’s total renewables generation in 2019, according to data from S&P Global Platts Analytics.

The EC in July unveiled one of its most ambitious legislative packages ever, publishing plans for new laws across numerous sectors designed to achieve its target of a 55% cut in greenhouse gas emissions by 2030 compared with 1990 levels, the so-called ‘Fit for 55’ program.

The EU has also set a 40-GW electrolyzer capacity target by 2030, producing 10 million mt/year of renewable hydrogen. Such volumes would require additional renewable power generation amounting to 477 TWh, Platts Analytics said in a report Aug. 13, over half of total EU renewable generation in 2019.

“Achieving the 10 million mt target would require a higher ramp-up of renewable electricity for hydrogen to 2030 than that of the entire power sector in the 2010-2020 period (around 380 TWh),” it said.

Fit for 55

Specific to hydrogen, the EU’s Fit for 55 proposals include a 50% renewable share for hydrogen used in industry and a 2.6% target for renewable fuels of non-biological origin (RFNBO) in transport by 2030. Hydrogen and its derivatives are expected to make up most of the RFNBO.

Platts Analytics estimates that around 11 million mt/y of hydrogen would be needed to meet the demand targets, with around 5.2 million mt going to industry and 5.8 million mt to transport.

However, the nature of the targeted sectors means much of the hydrogen will need to be converted to ammonia, leading to large conversion losses, resulting in lower final energy use or the need for higher input volumes.

Current EU industrial sector hydrogen demand is around 8 million-10 million mt/y, with 45% for refining, 38% for ammonia production and 8% for methanol.

In transport, the EU’s focus for hydrogen is on the aviation and maritime sectors, where there is limited potential for direct electrification.

“While the industry sector has a focus on replacing existing fossil hydrogen, the transportation sector target will lead to deployment of new technologies such as fuel cells and adoption of hydrogen as a new fuel,” Platts Analytics said.

The package also included measures for hydrogen in marine fuels, hydrogen fueling stations every 150 km along the core Trans-European Transport Network routes and tax incentives for the use of renewable and low-carbon hydrogen for end consumers.

In addition, the legislative proposals target tighter CO2 emissions standards for cars and vans, which could support the development of hydrogen fueling for heavy-duty vehicles, and revisions to the EU emissions trading scheme.

Renewable and low-carbon hydrogen production will be eligible for free allowances under the EU ETS proposal.

Power load

Questions have been raised over how the EU plans to meet the 10 million mt/y production target, given the utilization rate limitations of running electrolyzers from renewables, and the vast amounts of power needed to reach the target.

The EU has emphasized requirements that generation for green hydrogen must come from “additional” renewable power or curtailed existing capacity, with scope for possibly using repowered renewable facilities.

Platts Analytics said the potential surplus wind and solar for grid-connected electrolyzers in major European markets would be less than 6 TWh/y by 2030.

A source in the EC said it was focused on building hydrogen capacity rapidly, and anticipated that most electrolyzers would be connected to the grid, with power purchase agreements and guarantees of origin to ensure the renewable credentials of the electricity used.

The source said the EC’s forthcoming revisions to the Renewable Energy Directive would include amendments to definitions of renewable energy and the additionality requirements for electrolyzers.

The ramp-up of hydrogen would be gradual, the source said, as would the build-out of additional renewables capacity.

The EC envisaged industrial applications would provide the first-use cases for renewable hydrogen, with a later expansion into transport, while the business case for inter-seasonal power storage from hydrogen would come at a later date, the source said.

A policy framework for hydrogen would be completed in December, the EC said in July.

S&P Global Platts assessed the cost of producing renewable hydrogen via alkaline electrolysis in Europe at Eur5.74/kg ($6.73/kg) Aug. 20 (Netherlands, including capex). PEM electrolysis production was assessed at Eur7.08/kg, while blue hydrogen production by steam methane reforming (including carbon, CCS and capex) was Eur3.12/kg.

Proposed electrolyzer projects due online by 2024 in the EU amounted to 5.2 GW at the start of July, according to the Platts Analytics Hydrogen Production Asset Database, already approaching the EU’s target of 6 GW by that date.

A project survey by the European Hydrogen Alliance listed 997 projects proposed across the EU and its close neighbors, equating to a potential 9 million mt of hydrogen production by 2030, EC Energy Commissioner Kadri Simson said July 15.

Hydrogen

News and Insight

Australia has the potential to be Japan’s largest supplier of hydrogen

– Over 40 hydrogen projects have been announced in Australia with a potential capacity of 7.0 MT H2/year by 2030, representing a third of total announced capacity.

– Australia has plans to build two of the largest green hydrogen projects in the world

– Japan aims to become a ‘hydrogen society by 2050, Australia well positioned to supply growing hydrogen demand

The interest in hydrogen as a future clean energy feedstock and carrier is snowballing as governments around the world are planning their deep decarbonization goals and strategies. As a result, the global demand for hydrogen is rising. The future growth in demand can be even more promising considering the downstream applications in power, industrial, and transport (including marine) sectors.

Australia has established itself as a top exporter of key commodities such as coal, iron ore, and natural gas to the major economies of the region – China, Japan, South Korea, and India. It is also among the few countries that are uniquely placed to produce hydrogen at scale. In addition, Australia’s sizeable brown coal (lignite) reserves with carbon content as high as 60-70% could provide low-cost clean Hydrogen from coal gasification with carbon capture and sequestration (CCS) which can help kick-start the hydrogen export industry. Platts Australia Hydrogen price assessments for Victoria for lignite gasification with CCS were in the range of A$ 0.77-3.48/Kg for both with/without CAPEX considerations on Aug. 16. Although there are concerns around how clean such hydrogen can really be, given incremental energy needs/emission and upstream supply releases. Large-scale investments in clean technologies producing green hydrogen may follow as they mature and become economical over time.Platts Hydrogen Production Asset Database has seen around 7.0 MT H2/year of announced hydrogen capacity from renewables by 2030 (refer to Fig. 1), catering to the demand primarily from power, industrial, chemicals, and mobility sectors¹ (refer to Fig. 2).

In addition to domestic consumption, there appears to be a significant potential demand for hydrogen as a fuel source from Japan which Australian hydrogen producers can target. Japan intends to cut its GHG emissions by 46% from 2013 levels and aims to achieve carbon neutrality by becoming a ‘hydrogen society’ by 2050, an upgrade from its initial targets in the Basic Hydrogen Strategy by the Ministry of Economy, Trade and Industry (METI), Japan. Over the next decade, the Government of Japan has committed a US$19.2bn (¥2 trillion) fund to develop green technologies, including hydrogen, storage batteries, and carbon recycling². Currently, Japan has more than 4400 FCEVs on the road, and the plan is to increase the number to more than 811,000 by 2030ⁱ. Japan is planning hydrogen power generation using international hydrogen supply chains, leading to annual hydrogen procurement of around 300,000 tons (amounting to 1 GW in power generation capacity). METI in long-term plans to generate 15-30 GW of power through hydrogen with the annual procurement of 5-10 million tons of H2. Given Japan’s limited domestic H2 production capacity, Australia can target this huge H2 demand. It has a clear advantage over other H2 producers around the world in terms of the availability of low-cost clean hydrogen combined with its proximity to Japan.

¹Hydrogen Market Monitor – A Global Status Update of the Hydrogen Market (June 29, 2021)

²Asia-Pacific Hydrogen Policy Review (July 06, 2021)

Fig. 1 – Announced renewable H2 projects in Australia.

Fig. 2 – H2 end-use sectors in Australia

In past years, Australia has positioned itself as a developing hydrogen industry in the region through clean energy investments, research studies, and demonstration projects.
The Hydrogen Energy Supply Chain (HESC) project is one such pilot project that will demonstrate liquid hydrogen (LH2, H2 cooled to –253°C) transportation from Latrobe Valley in Victoria to Kobe City, Japan (planned for the year 2021). The LH2 will be transported using the world’s first LH2 carrier, Suiso Frontier, which will house a 1250 m3 vacuum-insulated double-shell-structure LH2 storage tank. The learning from this project in liquefaction, storage, and transportation will play a critical role in establishing an end-to-end supply chain between both countries.

In addition to LH2, the other viable technological options for H2 storage and transportation Include organic hydrides such as methylcyclohexane (MCH) and green liquid ammonia. Transporting liquid ammonia has an edge over the LH2 and MCH, it has higher energy density (11500 MJ/m3) than LH2 (8491 MJ/m3) on a volumetric basis combined with suitable temperature requirements, and it can carry around 17% of hydrogen by wt. compared to only 6% in case of MCH. Furthermore, ammonia has mature production technology, infrastructure, and shipping experience of many decades. For now, there are no large-scale renewable ammonia plants in Australia. Still, the country holds an edge as a likely hub of clean ammonia production, based on renewable energy potential and proximity to an end-user market in east-Asia.

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