AUSTRALIA'S
NATIONAL
HYDROGENSTRATEGY

3

AUSTRALIA'S NATIONAL HYDROGEN STRATEGY© Commonwealth of Australia 2019
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ii

AUSTRALIA'S NATIONAL HYDROGEN STRATEGYFOREWORD
As the Commonwealth Ministers representing Australia's energy and resources sectors, we arepleased to present Australia's National Hydrogen Strategy.
Technological developments that support energy affordability, improve energy system reliability
and contribute to long-term emissions reductions will be vital as global energy markets continue to
evolve. Hydrogen is one of the many tools that can help us on this evolution and Australia is in aunique position to maximise on this opportunity.
The development of our hydrogen resources could enhance Australia's energy security, create
Australian jobs and build an export industry valued in the billions. We have all the pieces needed tocreate this new industry and supply clean hydrogen to the world: the energy resources, expertise,and infrastructure.
This Strategy sets a path to build Australia's hydrogen industry. We plan to accelerate thecommercialisation of hydrogen, reduce technical uncertainties and build up our domestic supply
chains and production capabilities. The Strategy looks to initially concentrate hydrogen use in nichehubs that will foster domestic demand. A strong domestic hydrogen sector will underpin Australia's
exporting capabilities, allowing us to become a leading global hydrogen player.
The Australian Government has already committed over $146 million to hydrogen projects. These
projects will help us learn more about how hydrogen can form part of Australia's energy mix tohelp drive down prices and emissions, as well as provide a foundation of expertise to build acompetitive export industry.
Every state and territory in Australia has regions with excellent prospects for hydrogen production.
Through this Strategy, all of Australia's governments are committing to remove barriers to industry
development. This includes through nationally consistent and smart regulation, enhanced
engagement with customer countries, and in ensuring safety concerns are addressed. The
Australian Government will track progress and monitor emerging industry changes here andoverseas so that all jurisdictions can respond to market developments.
It is important that governments provide the right support at the right time for emerging
technologies, and this Strategy will give us an adaptive pathway to do so. Ultimately, business andindustry will be the ones to carry technology through to commercial scale when the time is right.
We thank the members of Energy Council for their commitment to this Strategy, and the resources
they allocated to its development. We look forward to future-proofing our position as a world
leader of this transformative technology.

The Hon Angus Taylor MP
Minister for Energy and Emissions Reduction

Senator the Hon Matthew Canavan
Minister for Resources and Northern Australia

iii

iv

AUSTRALIA'S NATIONAL HYDROGEN STRATEGYMESSAGE FROM THE CHAIR
In 1874, science fiction author Jules Verne envisioned a future in which'water will one day be employed as fuel, that hydrogen and oxygen which constitute it, usedsingly or together, will furnish an inexhaustible source of heat and light, of an intensity of whichcoal is not capable. Someday the coal-rooms of steamers and the tenders of locomotives will,
instead of coal, be stored with these two condensed gases, which will burn in the furnaces withenormous calorific power.'
Verne’s prescient vision has inspired governments and entrepreneurs in the 145 years since, but two factors
stood in the way of lift-off: the expense of manufacturing clean hydrogen and the durability of theequipment. Until now. Science and technology, and manufacturing experience in solar and wind electricity
generation, have given wings to Verne’s vision. Clean hydrogen as a fuel is now poised to become a reality.
Around the planet the pace of research, demonstrations, product development and pilot projects is
accelerating, seemingly by the day. For the anxious, progress is too slow, but look back a few decades fromnow and history will record the hydrogen industry as an overnight success.
Energy is the foundation of civilisation. To meet future demand while avoiding the by-products of ourcurrent energy sources we have to find alternatives. These will be a mix of primary energy sources such as
solar and wind electricity, and secondary energy carriers, of which hydrogen will make an essential
contribution as a high-density, zero-emissions fuel.
The potential to export clean hydrogen is substantial, with the International Energy Agency and the World
Energy Council both identifying Australia as a potential hydrogen production powerhouse. We can becomea leader in the new industry I call 'shipping sunshine', with our hydrogen exports being additional to ourother energy exports.
Domestic use of hydrogen will give us opportunities to expand into new and revitalised industries while
helping us to develop the skills and credibility that will contribute to the development of our export industry.
In our research and consultations, the COAG Energy Council Hydrogen Working Group has found that
Australian companies and investors are ready to apply their ingenuity and considerable experience toactivating the supply of hydrogen. The challenge is to develop the early demand that will enable thesuppliers to begin their journey down the cost curve. The best way to start this journey is for governments
and industry to work together in the manner outlined in this Strategy.
I take this opportunity to thank each of the Commonwealth, State and Territory energy and resources
ministers for inviting me to lead the development of this National Hydrogen Strategy. This Strategy’s
implementation now rests with them and the governments they represent. I was privileged to meet many ofthem throughout the process to seek their advice and to make sure we captured their aspirations andaddressed their concerns.
I have been ably supported by a taskforce of public service personnel who brought deep expertise,knowledge and commitment to the project. Together we have been guided by our steering committee,
drawn from public service leadership around the country, as well as a stakeholder advisory panel. I deeply
thank them and the many companies, institutions and individuals who made submissions in response to ourcalls. I also thank my colleagues and new acquaintances who have provided advice along the way.
Travelling around the country I have witnessed an extraordinary degree of passion for this industry fromministers, public servants, investors, industrialists and the general public. The future for hydrogen is brightand it is ours to seize.
Dr Alan Finkel AO
Australia’s Chief Scientist
Chair, COAG Energy Council Hydrogen Working Group
22 November 2019v

vi

AUSTRALIA'S NATIONAL HYDROGEN STRATEGYCONTENTS
FOREWORDIII

MESSAGE FROM THE CHAIR

V

EXECUTIVE SUMMARY
TAKING ACTION: ADAPTIVE PATHWAYVIIIXMEASURES OF SUCCESSXIIICONVERSIONS AND UNITSXIV

HOW MUCH HYDROGEN IS THAT?

XVJURISDICTIONAL SHOWCASE

XVI

1:

AUSTRALIA’S CLEAN HYDROGEN POTENTIAL

1

2:

MAKING AND TAKING AUSTRALIA’S OPPORTUNITY

21

3:

THE JOURNEY TO HYDROGEN POWERHOUSE

31

4:ENABLING INDUSTRY GROWTH

49

5:

BUILDING BENEFITS FOR THE AUSTRALIAN COMMUNITY

57

6:

TRACKING PROGRESS

67

7:

BEYOND 2030

75

STRATEGIC ACTIONS78

APPENDICES

85

A. SCENARIO ANALYSIS

86

B. ABBREVIATIONS, ACRONYMS AND GLOSSARY

88

C. SUPPORTING REPORTS

91

D. CONSULTATION

92

E. TERMS OF REFERENCE

95

F. COAG HYDROGEN WORKING GROUP

96

G. ACKNOWLEDGEMENTS

99

vii

EXECUTIVE SUMMARYIn December 2018, the Council of Australian Governments Energy Council set a vision for a clean,innovative, safe and competitive hydrogen industry that benefits all Australians and is a major global
player by 2030. The Council agreed to establish a Hydrogen Working Group, chaired by Australia’s Chief
Scientist, Dr Alan Finkel, to develop a National Hydrogen Strategy that can achieve this vision.
Australia has the resources, and the experience, to take advantage of increasing global momentum forclean hydrogen and make it our next energy export. There is potential for thousands of new jobs, manyin regional areas – and billions of dollars in economic growth between now and 2050. We can integrate
more low-cost renewable generation, reduce dependence on imported fuels, and help reduce carbon
emissions in Australia and around the world.i
Much of how this opportunity will evolve remains uncertain, but there are risks in not acting early.
Australia’s Strategy will follow an adaptive approach. It will focus on actions that remove market
barriers, efficiently build supply and demand, and accelerate our global cost-competitiveness. These will
equip us to scale up quickly as markets develop.ii
A key element of Australia’s approach will be to create hydrogen hubs – clusters of large-scale demand.
These may be at ports, in cities, or in regional or remote areas, and will provide the industry with its
springboard to scale. Hubs will make the development of infrastructure more cost-effective, promote
efficiencies from economies of scale, foster innovation, and promote synergies from sector coupling.
These will be complemented and enhanced by other early steps to use hydrogen in transport, industry
and gas distribution networks, and integrate hydrogen technologies into our electricity systems in a waythat enhances reliability.iii
Building and demonstrating broad capability in making, moving, and using clean hydrogen is only partof the story. We will set clear regulatory frameworks and ensure development has a positive influenceon energy prices and energy security. Through our international engagement, Australia will work withother countries to develop a scheme to track and certify the origins of internationally traded cleanhydrogen. We will work constructively to shape international markets and open new frontiers for trade.iv
Australians will want the new jobs and growth of clean hydrogen to be achieved without compromisingsafety, cost of living, water availability, access to land or environmental sustainability. Governments andindustry have the responsibility to ensure community safety, confidence and trust in the new industry,and deliver benefits for all Australians.v
The vision we set today, and the actions we plan, are not enough if we aren’t prepared to measure ourprogress and ultimately our successes. Nor can we be adaptive if we aren’t monitoring global
developments. For the next decade, the Strategy identifies indicators that will show where technology
and markets are advancing quickly, and where they are moving slowly or falling behind. At the sametime, tracking our progress on clear measures of success – such as being a top three supplier to the
Asian market, and maintaining an impeccable safety record – will ensure we are accountable to the highexpectations of the Australian public.vi, vii
The Strategy is the culmination of considerable analysis, consultation with experts, industry and the
public, and an extensive body of original research. It is designed to be a ‘living document’ – updated
and revisited as the industry develops.

viii

AUSTRALIA'S NATIONAL HYDROGEN STRATEGYIn total, the Strategy identifies 57 joint actions.viii These actions by themselves will not achieve the visionlaid out by Ministers. They are first steps, on which later actions can build. Actions are themed aroundnational coordination, developing production capacity, supported by local demand; responsive
regulation; international engagement; innovation and research and development (R&D); skills andworkforce; and community confidence. The actions consider hydrogen in relation to exports, transport,
industrial use, gas networks, electricity systems, and cross-cutting issues such as safety, skills, andenvironmental impacts.
All levels of government, private industry, and the research community have the opportunity to help
Australia realise its hydrogen potential and reap rewards for the economy, the community and theenvironment to 2030 and beyond. Success will rely on working together. The possibilities are exciting:our Strategy will help us realise the vision.

Endnotesi

See Australia’s clean hydrogen potential, from page 1

ii

See Making and taking Australia’s opportunity, from page 21

iii

See The journey to hydrogen powerhouse, from page 31

iv See Enabling industry growth, from page 49v

See Building benefits for the Australian community, from page 57

vi See Tracking success, from page 67
vii See Appendix Eviii See Strategic Actions, from page 78

ix

TAKING ACTION – THE ADAPTIVE PATHWAY

Scale-up activities

FOUNDATIONS AND DEMONSTRATIONS

TO 2025

Advance priority pilots, trials
and demonstration projects

Build demonstration scalehydrogen hubs

Assess supply chain
infrastructure needs

Develop supply chains forprospective hydrogen hubs

Hubs are regions where various usersof hydrogen across industrial, transportand energy markets are co-located.

Enabling activities

Scale-up support

Create, test and prove Australia’s clean hydrogen
supply chains, encourage global markets and develop
cost-competitive production capabilityxProvide targeted support for pilot, trial anddemonstration projects, to:• drive technology development• Incentivise growth of hydrogen hub
demonstrations• develop industry expertise• Support efficient hub supply chains• promote international collaboration• Develop country-to-country agreements• prove hydrogen supply chains at scale.

− complete the National Hydrogen
Infrastructure Assessment

Many projects are already in their early stages.

− support targeted and coordinatedinfrastructure investments

Enabling activities
to support theadaptive pathway
throughout the
decade include:• Responsive regulation: review
and reform underpinning
regulatory legal frameworks,
develop consistent
approaches for efficient
supply chains and markets,
ensure a supportive
investment environment,robust training requirements
and safety standards.

AUSTRALIA'S NATIONAL HYDROGEN STRATEGY• Strategic and coordinatedinternational outreach, focusedon key markets, harmonising
standards and encouraging
global trade to emerge.
• Develop a scheme with othercountries to track and certify
the origins of internationallytraded clean hydrogen.

LARGE-SCALE MARKET ACTIVATIONFROM 2025

Identify signals that large-scalehydrogen markets are emerging

Build and maintain robust andsustainable export and domestic
markets and supply chains

Scale up projects to support
export and domestic needs

Enable competitive domestic
markets with explicit publicbenefits

Build Australian hydrogen supply
chains and large-scale exportindustry infrastructure

Supply chain infrastructure includes
powerlines, pipelines, storage tanks,
refuelling stations, ports, roads andrailway lines and any other facilities
needed for hydrogen supply.

Additional actions to scale up the industry and activate
markets in light of global signals

Supporting actions could include:• Financing of clean hydrogen supply chains orother policies that attract private investment• Policies to build widespread domestichydrogen demand, including measures thatenable:− using clean hydrogen for industrial feedstocks
and heating• Ensure community safety and confidence,deliver benefits for all Australians, and protect
the environment.
• Provide long-term governance structures, andsupport market settings to foster industry
growth and competition.

− blending of hydrogen in gas networks− using hydrogen for long-distance heavy-dutytransport and development of associatedrefuelling infrastructure• Building industry capability
and capacity throughimproving skills andestablishing training regimes.
• Earning community confidence
by focusing on safety, explicitly
providing community benefits,
keeping the community
informed and by addressing
community concerns.

• Providing targeted support forhydrogen research anddevelopment activities todrive technology
improvements, ensure safety,
minimise environmental
impacts, inform project scale
up and stimulate collaborationand knowledge sharing.

• Enabling adaptation bymonitoring global indicators oftechnology and market
development.
• Tracking progress on measuresof success.

xi

xii

AUSTRALIA'S NATIONAL HYDROGEN STRATEGYMEASURES OF SUCCESS

xiii

CONVERSIONS AND UNITS
Currency
Unless otherwise stated, all currency amounts in this report are in Australian dollars (AUD).

Energy content of hydrogen
In this report, when referring to the energy content of hydrogen we use the lower heating valueof 120 MJ/kg (equivalent to 33 kWh/kg).i

References to hydrogen
Unless otherwise indicated, references to hydrogen in this report refer to clean hydrogen. Clean hydrogen is
produced using renewable energy or using fossil fuels with substantial carbon captureand storage (CCS). This definition reflects a technology-neutral stance.

Breakeven price points
This table shows the delivered prices hydrogen would need to achieve against competitor fuels.
Competitor fuel service

Hydrogen breakeven price ($/ kg H2)

Drive 100 km using petrol(retail price $1.43/ L)ii

$13.31

Drive 100 km using diesel(retail price $1.50/ L)iii$11.21

Deliver 1 GJ heat using natural gas(wholesale price approximately $10/ GJ)iv$1.20

Water inputs
Producing 1 kg of hydrogen requires at least:v
Electrolysis

9L

Coal gasification

9L

Steam Methane Reforming (SMR)

4.5 L

These are theoretical amounts of water based on the chemical pathway for each process. In practice waterrequirements for hydrogen production will vary depending on production method and technology, watercontent of inputs, and additional water needs for processes like cooling and input water purification.

Emissions intensity of production
Production technology
Electrolysis – Australian grid electricityvii

40.5Electrolysis – 100% renewable electricity0

Coal gasification, no CCSviii

xiv

Emissions (kg CO2-e/kg hydrogen)vi

12.7 – 16.8

Coal gasification + CCS – best caseix

0.71

Steam methane reforming (SMR), no CCSx

8.5

SMR + CCS – best casexi

0.76

AUSTRALIA'S NATIONAL HYDROGEN STRATEGYHOW MUCH HYDROGEN IS THAT?

Endnotesi

Department of Energy USA 2001, Hydrogen Fuel Cell Engines and Related Technologies, p 21,
https://www1.eere.energy.gov/hydrogenandfuelcells/tech_validation/pdfs/fcm01r0.pdf, accessed 7 November 2019

ii

Calculation based on driving a Hyundai Santa Fe for 100 km compared to driving a Hyundai Nexo for 100 km. Source for petrol price: AustralianInstitute of Petroleum Weekly petrol prices report: week ending 10 November 2019, 2019,https://www.aip.com.au/sites/default/files/download-files/2019-11/Weekly%20Petrol%20Prices%20Report%20-%2010%20November%202019.pdf,
accessed 11 November 2019

iii

Calculation based on driving a Hyundai Santa Fe for 100 km, compared to driving a Hyundai Nexo for 100 km. Source for diesel price: AustralianInstitute of Petroleum Weekly diesel prices report: week ending 10 November 2019, 2019,https://www.aip.com.au/sites/default/files/download-files/2019-11/Weekly%20Diesel%20Prices%20Report%20-%2010%20November%202019.pdf,
accessed 11 November 2019iv

Wholesale gas price derived from Australian Competition and Consumer Commission 2019, Gas inquiry 2017-2020 interim report June 2019,https://www.accc.gov.au/system/files/Gas%20inquiry%20July%202019%20interim%20report.pdf, p43, accessed 12 November 2019.

v

Bruce, S, Temminghoff, M, Hayward, J, Schmidt, E, Munnings, C, Palfreyman, D & Hartley, P 2018, National hydrogen roadmap CSIRO, p12, p20.

vi

Scope 1 and scope 2 emissions only.

vii

Calculation based on electrolyser efficiency of 54 kWh/kgH2 and Australian average emissions intensity of 0.75 kg CO2 / kWh. Source for electrolyser efficiency: Bruce, S, Temminghoff, M, Hayward, J, Schmidt, E, Munnings, C, Palfreyman, D & Hartley, P 2018, National hydrogen roadmap,
CSIRO, p79. Source for electricity emissions: Clean Energy Regulator, Electricity sector emissions and generation data 2017–18,
http://www.cleanenergyregulator.gov.au/NGER/Pages/Published%20information/Electricity%20sector%20emissions%20and%20generation%20
data/Electricity-sector-emissions-and-generation-data-2017–18-.aspx, accessed 12 November 2019.

viii CSIRO calculation based on Burgt, M.v.d. & Higman, C. 2011, Gasification, 2nd edn, Elsevier Science & Technology, Oxford.
ix

Bruce, S, Temminghoff, M, Hayward, J, Schmidt, E, Munnings, C, Palfreyman, D & Hartley, P 2018, National hydrogen roadmap, CSIRO, p67

xOffice of Air and Radiation, 2008, Technical support document for hydrogen production: proposed rule for mandatory reporting of greenhousegases, US Environmental Protection Authority, viewed 12 May 2019, https://www.epa.gov/sites/production/files/2015-02/documents/subpartp-tsd_hydrogenproduction.pdf

xi

Bruce, S, Temminghoff, M, Hayward, J, Schmidt, E, Munnings, C, Palfreyman, D & Hartley, P 2018, National hydrogen roadmap, CSIRO, p67

xv

AUSTRALIAN GOVERNMENTThe Australian Government supports growth of aclean, innovative, safe and competitive Australianhydrogen industry.
Priorities
Smart, consistent, light-touch regulation
The Australian Government will drive national regulatory reform to help all jurisdictions remove barriers
to industry development, while keeping Australians safe and protecting the environment.
We will ensure Commonwealth laws are reviewed and reformed where necessary, to allow for thedevelopment of a strong hydrogen industry in Australia. We will ensure baselines under the Safeguard
Mechanism are appropriate and provide investment certainty for new hydrogen facilities.
We support the Australian Hydrogen Council’s efforts to develop and implement industry undertakings
to guide the development of Australia’s hydrogen industry, safeguard the community, communicate
issues and engage with regulators.

Shaping international markets
The Australian Government will establish agreements with key international markets to underpin
investment. We have already signed a cooperation agreement with Japan and a letter of intent with
Republic of Korea.
Australia will spearhead development of an international certification scheme for hydrogen, working
closely with local and international companies. We will ensure the emerging global rules and regulations
for hydrogen trade do not disadvantage Australia, by working with like-minded countries and in
multi-lateral forums.

Accelerating technology commercialisation
The Australian Government supports clean energy technology, including hydrogen, from research anddevelopment through to commercialisation through the Australian Research Council, the CSIRO, theAustralian Renewable Energy Agency (ARENA), the Clean Energy Finance Corporation and theNorthern Australia Infrastructure Fund. Through these investments, we are building the pipeline oftechnologies needed to meet our Paris target and achieve emissions reductions beyond 2030.
Since 2015, the Australian Government has committed over $146 million to hydrogen projects along the
supply chain.

xvi

AUSTRALIA'S NATIONAL HYDROGEN STRATEGYACTIONS
Hydrogen mission
CSIRO is developing a hydrogen mission that will bring
together industry, government and other researchorganisations to deliver research, development anddemonstration projects. The mission will de-risk andfast-track emerging hydrogen technologies and catalyse
industrial demonstration of critical elements, linking
Australian activities with international projects. The overall
focus will be on enabling Australiaís domestic and exporthydrogen industries.

Hydrogen Industry Cluster
National Energy Resources Australia (NERA) will support
SMEs to take advantage of opportunities in the hydrogen
industry by forming an industry-led hydrogen cluster. The
Hydrogen Industry Cluster will help build capabilities anddrive industry collaboration across the hydrogen value
chain. This will maximise economic benefits by ensuring
Australian companies are well placed to supply newtechnology, products and services to Australia's hydrogen
industry and export markets.

International collaboration on safety
The Australian Government is a member of the U.S. Centerfor Hydrogen Safety. This gives all Australian governments
access to some of the worldís foremost expertise inhydrogen safety.

National Hydrogen Infrastructure Assessments
The Australian Government will lead a National Hydrogen
Infrastructure Assessment that will guide government andprivate sector investment as the industry grows.

CSIRO'S vanadium membrane technology enables ammonia
to be used as a carrier material for hydrogen storage andtransport – Image courtesy of CSIRO.
© John Nguyen Photography.

NEW SOUTH WALESNew South Wales (NSW) has a large and expanding renewable energy
sector, natural resources, skills and research capacity, which will
make it well positioned for the future development of hydrogen sector.
NSW is already home to an
established hydrogen-basedindustry. The foundations fora significant expansion of an
innovative and dynamichydrogen sector in NSW arebeing put in place.

Priorities

NSW is an important energy
exporter with significant
developed black coal resourcesand established internationalscale ports. Newcastle and Port
Kembla are potential export ports
for hydrogen.

By working with the renewable energy and resources sectors, and an
existing industrial sector that already utilises hydrogen, the New South
Wales Government will assess developing the supporting infrastructure
and capabilities which would eventually underpin a larger scalehydrogen sector, including an export market for North Asia and beyond.

There are also local market
opportunities for hydrogenproducers in NSW. NSW has anestablished industrial base,extensive transport networks
and major metropolitan andregional population centres.
NSW also has a large and skilledworkforce that has proven to beadaptable to changing skill
requirements and includes
expertise in gas transmission andsafety protocols. The ‘Smart andSkilled’ program can provide
subsidised training packages forbusiness to create the new skillsin the workforce they need.
As well, NSW is the home ofsignificant research andinnovation capability, including
in hydrogen. Over 60 hydrogenrelated research and innovation
projects are in train in seven of
the state’s universities, the CSIRO
and in private industry.

Develop the supporting infrastructure and capabilities
The New South Wales Government is aware of the high level of investor
interest in its hydrogen industry and is looking to encourage thedevelopment of domestic hydrogen production capabilities for domestic
or export purposes.

The NSW Transmission Infrastructure Strategy is the New South Wales
Government’s plan to unlock private sector investment in prioritytransmission infrastructure projects, which can deliver least-cost energy
to customers to 2040 and beyond.

Planning approval and infrastructure development
The NSW planning system provides a coordinated framework for statesignificant projects, including most large hydrogen projects.
The system of Special Activation Precincts (SAP) in NSW offers amechanism that can align with the development of hydrogen hubs inregional areas. SAPs are one of the focus areas of the $4.2 billion Snowy
Hydro Legacy Fund and offer fast track planning, tailored infrastructuredevelopment and government engagement to business development.

Regulatory oversight
The New South Wales Government is considering whether the regulatoryenvironment needs updating to ensure it is compatible with thedevelopment of a safe and expanding hydrogen sector.

Support for business and R&D
There are a number of New South Wales Government programs in placethat hydrogen researchers and businesses can access that are beneficial
for their business and research. The Investment Concierge provides afacilitation service including coordinating other government
departments, creating connections with potential partner organisations
and providing the latest information on available government assistancesuch as the Regional Investment Attraction Package and other programs.
The Office of the NSW Chief Scientist and Engineer provides coinvestment support to collaborative R&D initiatives, in particular
Australian Research Council Centres of Excellence, Australian ResearchCouncil Industrial Transformation Research Program, Cooperative
Research Centres-Projects, National Collaborative Research Infrastructure
Strategy facilities and new innovative devices through the PhysicalSciences Fund. As well, TechVouchers provide matched funding to small
and medium sized enterprises for co-partnered research projects with
universities or the CSIRO.
Coal Innovation NSW is also leading the NSW CO2 Storage Assessment
Program to identify opportunities across the state for the safe andsecure geological storage of CO2, which could potentially be used tosupport fossil-fuel based hydrogen production.

xviii

AUSTRALIA'S NATIONAL HYDROGEN STRATEGYJEMENA WESTERNSYDNEY GREEN GASPROJECT
The Western Sydney Green Gas
Project involves designing andconstructing a Power-to-Gas
facility which will convert solar
and wind power into hydrogen via
electrolysis.
The $15 million project, co-funded by the ARENA, will inject
and store a small percentage of hydrogen (less than 2% byvolume) into part of the Jemena Gas Network, Australia’s
largest gas distribution network. This will demonstrate how
existing gas pipeline infrastructure can be used to store
excess renewable energy.
The hydrogen injected into the network can be used toprovide energy for up to 250 homes, and the hydrogengenerated onsite can provide responsive generation to thegrid via a micro-turbine as well as supply hydrogen to afuture vehicle refuelling station.

Artist impression of Jemena's Western Sydney Green Gas
Project – Image courtesy of Jemena .

VICTORIA
The Victorian Government is embracing the opportunities thatcome with the clean energy transformation, and hydrogen could
play a pivotal role in this.
As the energy sector transitions,
the Victorian Government is
putting in place a broad range ofprograms and initiatives to support
emerging industries and position
Victoria at the forefront of thetransition to clean energy.
Victoria continues to demonstrateleadership through its integrationof climate and energy policy. Local
governments and community
groups across Victoria are alreadyidentifying opportunities forhydrogen-based projects on a local
and regional level.
We have legislated a world-leadingclimate change framework with acommitment to net zero
greenhouse gas emissions by 2050.
We have set strong renewableenergy generation targets,
including a goal of 50% renewableenergy generation by 2030.
We are leveraging our extensive
natural resources, infrastructureand skills to reduce emissions andcreate economic opportunities forthe state, working closely withindustry to encourage private
investment by creating anenvironment for innovation andnew market development.
Victoria also has a skilledworkforce and leading educational
institutions that are well placed todevelop and deliver a cleanhydrogen industry.

Priorities
Delivering the Victorian Hydrogen Investment Program
The Victorian Hydrogen Investment Program (VHIP) is supporting thedevelopment of a green hydrogen industry through market testing, policy
development and a targeted investment program.
The VHIP aims to:• build an understanding of Victorian industry capability and capacity;• identify pathways for government, businesses, academics and thecommunity to address barriers constraining development of ahydrogen economy;• establish a program of support for hydrogen research, trials, pilots anddemonstrations, creating a strong base of industry knowledge and skills;• identify the best way for government to create anenabling environment; and• align with the National Hydrogen Strategy.
A follow-up discussion paper will seek further feedback on how toeffectively build a Victorian hydrogen industry.

Delivering Victoria’s Zero-Emissions Vehicle Roadmap
A Zero-Emissions Vehicle Roadmap is planned for release in 2020.
Key priorities include:• identifying actions to address barriers;• integrating planning for zero-emissions vehicles (ZEVs) withgovernment policies for the energy system transition and energy
infrastructure planning;• identifying economic opportunities; and• capturing the environment and health impacts of ZEVs for all Victorians.

Exploring hydrogen opportunities to decarbonise Victoria’s
gas networks
Victoria has the highest rate of access to the reticulated gas network anduses a significant amount of natural gas. As part of Victoria’s commitment
to net zero emissions by 2050, the government is exploring opportunities
to decarbonise the gas network while still meeting the needs of consumers.

New energy technologies and research
The new energy technologies sector is one of the government’s priority sectors
for development in Victoria. The Victorian Government was a sponsor andmember of the Government Advisory Group of the CSIRO National Hydrogen
Roadmap and continues to support CSIRO’s hydrogen work by sponsoring aforthcoming report on research, demonstration and development contributions
to hydrogen technologies.
Victoria is also actively pursuing opportunities to use its brown coal resource in
new ways, consistent with the Statement on Future Uses of Brown Coal. The
production of hydrogen from brown coal, when coupled with CCS presents asignificant opportunity and comparative advantage for Victoria. The
conveniently located CarbonNet Project could enable production of cleanhydrogen for domestic and export markets.

Building international partnerships and investment
Victoria has 23 trade and investment offices around the world that arefocused on building international partnerships and investment. Hydrogen
opportunities are being pursued as part of the overarching work program.

xx

AUSTRALIA'S NATIONAL HYDROGEN STRATEGYWORLD FIRST FULLYINTEGRATED HYDROGEN
SUPPLY CHAIN
The Hydrogen Energy Supply
Chain (HESC) Pilot Project isdemonstrating a full supply chain
starting with hydrogen production
from brown coal in the Latrobe
Valley and ending with its
transportation to Japan.
The four year (2018–2021) HESC Pilot Project comprises
multiple stages to produce and export hydrogen to Japan
from the Latrobe Valley, using established and scientifically
proven technologies. The Pilot Project is the world’s largest
hydrogen demonstration project and includes thetransportation of liquified hydrogen in a world-first,
purpose-built liquified hydrogen carrier.
The Pilot Project is delivered by a consortium of reputablecompanies with expertise across the entire hydrogen supply
chain – Kawasaki Heavy Industries, Ltd (KHI), Electric Power
Development Co., Ltd (J-Power), Iwatani Corporation,
Marubeni Corporation, Sumitomo Corporation and AGL.
The Pilot Project is also supported by the Japanese,
Australian and Victorian governments.
This project is also underpinned by the Japanese
Government’s desire to decarbonise the Japanese economy
and build a hydrogen society.
A commercial hydrogen supply chain from Victoria to Japan
would be in operation by the 2030s. Any commercial HESC
project is dependent on a successful pilot, and a commercial
decision by the project consortium.
A commercial HESC requires a low-CO2 hydrogen energy
supply chain. A carbon sequestration solution, such as the
CarbonNet project, could provide this service forcommercial HESC operations in the 2030s. The Australianand Victorian governments have together invested$150 million in the development of the CarbonNet project in
the Gippsland Basin, and its commercialisation timelines are
expected to align with those of the HESC.
The HESC project provides Victoria with the opportunity to
be at the forefront of the developing hydrogen industry inAustralia, accelerating research and development
collaborations, helping to build the necessary skills andexpertise and large-scale infrastructure required to support
the emergence of a hydrogen industry at a scale thatenables both domestic supply and international exports.
Image courtesy of HySTRA.

QUEENSLAND
Queensland is well placed for renewable hydrogen production
with significant renewable energy resources and existing andplanned renewable energy projects.
In addition to domestic uses,
Queensland has the potential to
become a global player in the
production and export ofhydrogen, helping to meet theworld’s growing demand forrenewable energy.

Priorities

The Queensland Hydrogen
Industry Strategy 2019–2024(Queensland Hydrogen Strategy)
sets a vision that ‘by 2030,
Queensland is at the forefront of
renewable hydrogen productionin Australia, supplying anestablished domestic market andexport partners with a safe,
sustainable and reliable supply ofhydrogen.’• facilitating private sector investment

Implement the Queensland Hydrogen Strategy
The Queensland Hydrogen Strategy includes the $15 million Hydrogen
Industry Development Fund, providing funding for investors developinghydrogen projects in Queensland. The strategy focuses on five areas:• supporting innovation• ensuring an effective policy framework• building community awareness and confidence• facilitating skills development for new technology.

International technology exchange, attracting investment
and creating new export markets
In addition to domestic opportunities for renewable hydrogen, priorities
include: attracting investment, collaborative research and development,
and creating new export markets through our international partnerships.
In 2019, Queensland signed a Memorandum of Understanding with theJapan Oil, Gas and Metals National Corporation (JOGMEC) to cooperateon hydrogen and a Statement of Intent with the University of Tokyo’s
Research Center for Advanced Science and Technology (RCAST).
Professor Masakazu Sugiyama from the University of Tokyo, a leading
expert in renewable energy and hydrogen technologies, was alsoannounced as Queensland’s Hydrogen Envoy in Japan.

Planning and development framework for large scaleindustrial development
Queensland has an established and well-coordinated planning anddevelopment framework. Dedicated State Development Areas for large
scale industrial development are located throughout the State. The
independent Coordinator-General administers land within the State
Development Areas, and has extensive powers to assist with thecoordination and streamlining of the assessment of large industrial
projects across the State. The State is working with a large number ofprivate sector proponents to support the delivery of their renewablehydrogen projects.

Supporting innovation and hydrogen research
The Queensland Government’s Redlands Research Facility will establish
the Hydrogen Process Research and Development Project. The projectwill use existing solar array technologies to experiment and undertake
integrated modelling of a hybrid renewable energy process that utilises
solar power, energy storage and non-potable water to produce, store,
and use hydrogen. With funding in excess of $8 million from the
Queensland Government, ARENA, national and international research
partners and industry, the facility will be an important platform. It will
optimise the integration of components in a hybrid renewable energy
system to model system performance for translation to megawatt scale
implementation.

xxii

AUSTRALIA'S NATIONAL HYDROGEN STRATEGYPARTNERING WITH BOC
TO DRIVE A HYDROGENFUELLED FUTURE
The Queensland Government willtrial a Fuel Cell Electric Vehicles(FCEVs) fleet. This was a key
factor in BOC deciding to progress
their $3.1 million renewablehydrogen project at Bulwer Island.
BOC will produce up to 2400 kilograms of renewablehydrogen per month at its Bulwer Island production
facility as part of a $3.1 million end-to-end renewablehydrogen project.
The renewable hydrogen will be produced by a 220 kW
electrolyser, which will be powered by onsite solar or gridsourced renewable energy. Partially funded by ARENA, theproject will allow BOC to supply renewable hydrogen to
Queensland customers and a hydrogen refuelling station.
Located at QUT’s Kelvin Grove campus in Brisbane, therefuelling station is expected to be operational by mid-2020.
Bulwer Island – Image courtesy of BOC.

Discover more about Queensland's vision
for hydrogen—Queensland Hydrogen
Industry Strategy 2019-2024
https://www.dsdmip.qld.gov.au/resources/
strategy/queensland-hydrogen-strategy.pdf

X | CHAPTER

xxiii

WESTERN AUSTRALIA
Western Australia’s world-class renewable energy resources,
established energy production and export industry, andproximity to key international markets make it well placed to
produce, use and export renewable hydrogen for economic andenvironmental benefit.
Western Australia has a strong
foundation for a renewablehydrogen industry including:
1. High-intensity renewableenergy resources – including
among the highest solar
irradiance in the world and,due to being on the westernedge of the continent,
excellent wind resources.
2. Land – with an area of
2.5 million km2 (one-third theAustralian continent), lowintensity land use, and low
population density, Western
Australia is an ideal location todevelop large-scale renewableenergy generation.
3. Infrastructure – world-classindustrial and export
infrastructure that canaccommodate a hydrogen
industry.
4. Skilled workforce – Western
Australia has a technicallyskilled workforce, expertise
across the energy sector andrelevant research capabilities.
5. Established LNG industry withstrong international
partnerships – many of theworld’s largest oil and gas
companies have a local
presence in Western Australia
and are looking at transitioning
to a hydrogen future.
6. Access to international
markets – Western Australia is
Australia’s western gateway to
Asia and has a long term
partnership with Asian
economies, in particular in theenergy sector.

Priorities
Western Australia will develop industry and markets to be a major
exporter of renewable hydrogen. To facilitate the export of hydrogen,Western Australia will develop domestic production capabilities andapplications of renewable hydrogen, improving the State’s hydrogen
industry expertise, contributing to global decarbonisation anddecarbonising the State’s economy.

Western Australian Renewable Hydrogen Strategy
Released in July 2019, the Western Australian Renewable Hydrogen
Strategy details the vision, goals and implementation pathways required
for Western Australia to be a significant producer, exporter and user ofrenewable hydrogen.

Strategic Focus Areas• export• remote applications• blending in the gas network• transport
The role that renewable hydrogen could play in other areas such asstabilising the electricity network and in decarbonising industry is also
acknowledged.

Partnerships
The Western Australian Government will actively support industry
efforts to accelerate the development of the renewable hydrogen
industry in Western Australia. Government actions and investment in
partnerships, seed funding and fit-for-purpose regulatory support aswell as efficient approval processes will assist the industry to overcome
its economic, regulatory and technical challenges.

Investment
The Renewable Hydrogen Fund aims to facilitate private sector
investment and other avenues for financial support to the renewablehydrogen industry. The Fund provides financial support for feasibility
studies and capital works projects.

Regulations
The Western Australian Government will continue to work closely with
the Australian Government and relevant bodies to support regulatory
reform that will enable the growth of the renewable hydrogen industry
while ensuring strong safety and consumer protections.

Collaborations
The Western Australian Government will continue to strengtheninternational partnerships, identify opportunities and secure technology
partnerships with a focus on Asia and Europe.

xxiv

AUSTRALIA'S NATIONAL HYDROGEN STRATEGYATCO CLEAN ENERGYINNOVATION HUB
ATCO’s industry leading Clean
Energy Innovation Hub (CEIH) is atest bed for solar photovoltaics,
battery storage, hydrogenproduction and use as well ashydrogen blending with natural
gas infrastructure.
This $3.53 million project is located at ATCO’s operations
and training facility in Jandakot. Supported with
$1.66 million in Australian Renewable Energy Agency
funding it was opened in July 2019.
The CEIH incorporates the production, storage and use ofhydrogen produced by solar powered water electrolysis.
The hydrogen is injected into a demonstration gas network
and is also being tested in a fuel cell generating electricity
as well as a direct and blended combustion fuel fordomestic appliances.
The trial is addressing several safety and technicalchallenges including optimising hydrogen storage and gas
distribution network requirements for blending hydrogenwith natural gas.
The solar photovoltaic array is 300 kW and the site also has
a 400 kWh battery bank. When the battery is full and thesite is consuming less than the solar output, the excess
solar is used to produce hydrogen. This approach sets thisproject apart from other hydrogen trials currently underway
in Australia.
Compressed hydrogen storage tank and gas blending pipes
at ATCO's Clean Energy Innovation Hub in Jandakot – Image
courtesy of ATCO.

Discover more about Western Australia'svision for hydrogen—Western Australia
Renewable Hydrogen Strategy
http://www.drd.wa.gov.au/Publications/
Documents/wa_renewable_hydrogen_strategy.pdf

SOUTH AUSTRALIASouth Australia is committed to leveraging its wind, sun, land,
infrastructure and skills through effective collaboration
between government and industry to become a world-classrenewable hydrogen exporter.
The Government of South Australia was thefirst jurisdiction to publish a hydrogenstrategy, in 2017, and to date has committed
more than $40 million in grants and loans to
the development of hydrogen projects.
Building on this investment, the government
released South Australia’s Hydrogen Action
Plan in 2019, setting out the next steps for thedevelopment of the state’s hydrogen industry.

The opportunity
South Australia is Australia’s leading mainlandstate for renewable energy penetration.
The state is almost 1 million square kilometres,with expansive areas available for co-locatedwind and solar energy generation projects,
which can be used to create renewablegreen hydrogen.
The Government of South Australia isinvestor-focused, working to showcase
investment opportunity while creating aneffective, transparent regulatory environmentthat provides certainty and advocates forinternationally harmonised codes andstandards.
Working in collaboration with the leadinginternational regulation, codes, and safety
standards organisations, including theInternational Association for Hydrogen Safety
and the Centre for Hydrogen Safety, the state
government is developing consistent training
material, guidelines and procedures involving
the production, handling, transportation anduse of hydrogen.
The Government of South Australia is working
proactively with the community and industry
to increase knowledge and support for a
growing hydrogen industry.
To support investor decision making, theSouth Australian Government has an
Interactive Hydrogen Map and is developinga Hydrogen Export Modelling Tool.

xxvi

Priorities
Implement South Australia’s Hydrogen
Action Plan
Launched at the International Conference on Hydrogen
Safety hosted in Adelaide in September 2019 the Action Plan
will help underpin a safe and secure export sector as well as
accelerate hydrogen into the South Australian domestic
economy. Twenty actions across five key areas intend toachieve its objective of scaling-up renewable hydrogenproduction for export and domestic consumption:
1. Facilitate investments in hydrogen infrastructure
2. Establish a world class regulatory framework
3. Deepen trade relationships and supply capabilities
4. Foster innovation and workforce skills development
5. Integrate hydrogen into our energy system

Develop South Australia’s Hydrogen
Export Modelling Tool
A key commitment of South Australia’s Hydrogen Action Plan
is the development of a South Australian Hydrogen Export
Modelling Tool to inform the establishment of renewablehydrogen export supply chains.
The Government of South Australia is engaged with hydrogenconsortia, international customers, infrastructure developers
and investors to address the key strategic questions abouthydrogen exported from South Australia.
Examples of areas the prospectus will consider are:
1. South Australian locations suited to large-scale hydrogenproduction and export facilities (land, renewable electricity
and water availability, infrastructure)
2. Timeframes and estimated capital cost associated with
development of renewable hydrogen production andexport facilities
3. Estimated production volumes and cost per kilogram fromthose South Australian locations
Key findings will be summarised as a modelling tool anddetailed prospectus to be made available in 2020.

AUSTRALIA'S NATIONAL HYDROGEN STRATEGYCOORDINATEDREGULATORY APPROACH
FOR HYDROGEN
PROJECTSSouth Australia’s regulatory
expertise, close collaboration with
the national and internationalhydrogen communities and our
focus on safety, is developing aworld-leading hydrogen regulatory
regime designed to meet the needsof investors and the community.
As one of the top regulatory regimes in the world for tightand shale gas, South Australia has a proven record ofproviding effective, transparent regulatory frameworks thatfacilitate economic growth.
Working in close collaboration with our international andnational colleagues, we are advocating for best practice andharmonised codes and standards, making it simpler andmore efficient for investors working across multiple
jurisdictions and delivering consumer benefits.
Our Hydrogen Regulatory Working Group is currently
supporting three megawatt-scale projects the South
Australian Government has co-invested in with over $40
million in grants and loans:1.

Hydrogen Park South Australia Australian Gas Networks

2.

Renewable hydrogen and green ammonia supply chain
demonstrator - The Hydrogen Utility™ (H2U)

3.

Hydrogen Superhub - Neoen Australia

These projects will generate learnings for industry andregulators, grow community awareness and understanding
and develop workforce skills.
The South Australian Government is continuing to maintainand further develop its strong international hydrogen
network, and working with other internationally respectedorganisations in the research and development of hydrogentechnologies and its safe use, as part of our ambition toreach net 100% renewables in the 2030’s.
Waterloo Wind Farm, South Australia – Image courtesy of
Milton Wordley.

Discover more about South Australia'svision for hydrogen—South Australia's
Hydrogen Action Plan
http://www.hydrogen.sa.gov.au

TASMANIA
Tasmania is uniquely placed to develop a competitive largescale renewable hydrogen industry using its abundant existingand expandable world-class renewable wind energy firmed byhydro power, abundant fresh water, and access to industrial
zones with high quality infrastructure.
The Tasmanian Government’s vision is for
Tasmania to use its abundant renewableenergy resources to be a significant supplierof renewable hydrogen to meet emerging
export and domestic demand.
Tasmania’s key attributes include:• Highly cost-competitive and reliablehydro and wind generation, reflecting theworld-class nature of Tasmania’s
renewable energy resources, with close to
three gigawatts of installed renewableenergy capacity.
• A very high renewable energy contribution,with Tasmania on track to meet its target
to be self-sufficient in renewables by 2022,
making it the first state or territory inAustralia with 100% renewable power
generation. This is almost unique globally,and provides Tasmania with the capacity
to develop a large-scale renewablehydrogen industry now.
• Feasible and abundant further renewableenergy development potential, including
approximately eight gigawatts of windand multiple gigawatts of pumped hydroidentified through the Battery of the
Nation initiative, which could supporthydrogen production on a multi-gigawatt
scale over the longer term.

xxviiiPriorities
Facilitate the development of a hydrogen industry
The Tasmanian Office of the Coordinator General is actively
working with a range of proponents to facilitate investment inrenewable hydrogen production for both domestic use andexport, with a focus on developing the Bell Bay Advanced
Manufacturing Zone as a hydrogen hub. The Tasmanian
Government will work with proponents to assist in navigating
the State regulatory and planning approval processes, with a
key focus on timely assistance that puts community safety
and social acceptance at the forefront.

Utilise Tasmania’s renewable energy for hydrogenproduction
Over the past 100 years Tasmania has built its economy
around renewable energy developments, throughGovernment-owned hydro power and network assets, withthe existing power system supporting a range of energy
intensive major industries across the State.
The high capacity factors of Tasmanian renewable generation,
together with the firming capability of hydro power, allows
for high utilisation of Tasmanian renewable hydrogenproduction, ultimately improving its economic
competitiveness. In addition to renewable energy, Tasmania
has an abundance of available fresh water that could be used
for large-scale renewable hydrogen production.

Facilitate the development of an export basedindustry• The combination of predominately wind
power and capacity firming hydro power(and proposed future pumped hydroschemes) that can provide a highelectrolyser utilisation, compared toregions which have wind and solar
generation, but limited firming of variable
renewable generation.

The potential scale and competitiveness of Tasmanianrenewable hydrogen production, in industrial precincts withexisting and adaptable deep-water ports, makes Tasmania
ideally suited to be a significant exporter of renewablehydrogen to supply emerging global demand.

• Access to a highly skilled and innovative
workforce, supporting Tasmania’s
renewable energy and major industries,
and world-class educational and research
institutions. This includes the Blue
Economy Cooperative Research Centre
which is investigating renewablehydrogen production and use inAustralia’s marine environments.

While supporting the development of a hydrogen export
sector is a strategic priority for the Tasmanian Government,
the creation of a domestic market for hydrogen in parallel isrecognised to be equally important.

Identify opportunities for domestichydrogen demand

Tasmania is well placed to integrate renewable hydrogen intoa range of domestic end-uses, including; blending ofhydrogen into the existing hydrogen-compatible natural gas
network, as a carbon-neutral feedstock in Tasmanianindustries, and using hydrogen to support; fuel cell electricvehicles (e.g. light vehicles, buses and trucks), marine
applications (e.g. passenger ferries), and remote power
supplies (e.g. Bass Strait island power stations).

AUSTRALIA'S NATIONAL HYDROGEN STRATEGYBELL BAY ADVANCED
MANUFACTURING ZONE –AN IDEAL HYDROGEN HUB
The Bell Bay Advanced
Manufacturing Zone (the ‘Zone’) is
Tasmania’s premier major industrialzoned precinct that has available
land and is ideally suited to largescale renewable hydrogen industry
development for export and fordomestic applications.
The Zone has a suite of existing infrastructure well-suited torenewable hydrogen production, including access to highvoltage transmission assets, and fresh water. In addition,
there is good access to the Zone by rail, road, air and sea
links, with close proximity to an adjacent deep-water port
which handles domestic and international bulk goods, andcould be adapted for hydrogen exports.
From a domestic perspective, the Zone is just 45 kilometresfrom Launceston in the north of the state, and within
250 kilometres of all major Tasmanian population centres.
The Zone could supply hydrogen for a number of domestic
applications including for road, rail and marine transport, andfor injection into local gas distribution networks.
Tasmania’s small geographic size allows for more efficienthydrogen infrastructure investment. For example, hydrogenfrom the Zone could supply a relatively small number ofhydrogen refuelling stations to cover Tasmania’s main
population centres and heavy transport routes.
Bell Bay has a long-held reputation for actively supportingand promoting business, industry and job opportunities in theregion including housing the first aluminium smelter in thesouthern hemisphere. It is a hub of knowledge and expertisein light and heavy industry, and the Zone has attracted anumber of energy intensive major industries, including BellBay Aluminium, South 32 TEMCO (manganese smelting),
wood fibre facilities and the Tamar Valley Power Station.
These attributes make the Bell Bay Advanced
Manufacturing Zone an ideal Hydrogen Hub site, utilising
Tasmanian renewable energy for large-scale renewablehydrogen production, storage, export and domestic
end-use applications.
Repulse Dam – Image courtesy of Hydro Tasmania.

Discover more about Tasmania's vision forhydrogen—Tasmanian Renewable
Hydrogen Action Plan
https://www.stategrowth.tas.gov.au/energy_
and_resources/energy/hydrogen

X | CHAPTER

xxix

NORTHERN TERRITORY
The Northern Territory’s vision is to produce renewable hydrogento strengthen and diversify the Territory economy and to expand
into new energy export markets.
The Northern Territory is in an ideal
position to develop a renewablehydrogen industry and is already a
key energy exporter to Asia. With
one of the best solar resources in
the world, expertise, and existingenergy export infrastructure, theNorthern Territory has the capacity
to not only integrate renewablehydrogen across the Territory’s
economy, but also to export todomestic and international markets.

Priorities
New energy export markets
The Northern Territory is seeking investment and collaborative partnerships
to develop projects that are aligned with our strategic areas of focus.
Strategic focus areas include:• exports• enhancing renewable energy access and energy security in remote areas• blending of hydrogen to provide low-carbon gas• green ammonia production• combined desalination and solar electrolysis systems.
In addition to participating in the National Hydrogen Strategy through COAGand developing the renewable hydrogen strategy, the Northern Territory
Government has a 50% Renewable Energy Target by 2030 that serves tocomplement the development of a renewable hydrogen industry.

xxx

AUSTRALIA'S NATIONAL HYDROGEN STRATEGYINDUSTRIAL RENEWABLE
HYDROGEN PROJECTSThe Northern Territory
Government is in active
discussions with national andinternational companies todevelop world-class industrial
renewable hydrogen projects in
the Northern Territory.
In addition to having one of the best solar resources in theworld and the space to develop large-scale renewableenergy generation, our geographical proximity to Asia andour energy corridor for domestic and international export(rail; pipeline; road; and port) make the Territory an
attractive location for renewable hydrogen investment.
Darwin Harbour and City – Image courtesy of Nothern
Territory of Department Trade, Business and Innovation.

AUSTRALIAN CAPITAL TERRITORY
The Australian Capital Territory (ACT) is an internationallyrecognised centre for renewable energy research and innovationand continues to deliver world-leading policies and programs.
This is demonstrated by the
Territory’s legislated 100%
renewable electricity by 2020
target, its legislated net zero
emissions by 2045 target, andrenewable energy research
investment.
The ACT offers an excellent test
environment for demonstratinghydrogen technologies and isleading Australia in severalhydrogen R&D trials across a wide
spectrum, including hydrogenproduction (electrolysis), vehicle
refuelling and vehicle use, blendinghydrogen in gas networks, andregulatory reform.
The ACT’s legislated 100%
renewable electricity by 2020
target will attract over $2 billion
investment in large-scale
renewables over the 20-year life ofexisting contracts and has
demonstrated the ACT’s national
and international leadership as arenewable energy and climate
action capital.

Priorities
Net Zero Emissions Territory
The ACT Climate Change Strategy 2019–2025 sets out the next steps in how
the ACT Government will work with the community to respond to climatechange and achieve net zero emissions by 2045.
When the ACT achieves 100% renewable electricity in 2020, natural gas andtransport will become the largest remaining contributors to the Territory’s
greenhouse gas emissions. In response to this, the Government will:• develop a plan for achieving net zero emissions from natural gas use
by 2045• facilitate the transition to zero emissions vehicles, including bytransitioning to a zero emissions bus fleet by 2040.
As a result, the ACT is actively looking at innovative research anddevelopment solutions to support this transition, including
renewable hydrogen.

Research and development capital
The ACT Government fosters R&D opportunities and collaboration between
Canberra’s world class education and research institutions.
The Australian National University has a broad portfolio of hydrogen
research spanning across the hydrogen value chain, including technologicalexpertise in hydrogen production, transportation and storage, as well associal license issues, governance, and economics to address prerequisites
and underpinnings of an Australian hydrogen economy.
The ACT gas network operator Evoenergy has established Australia’s first
100% hydrogen test site at the Canberra Institute of Technology. The facility
aims to test 100% hydrogen on existing materials, equipment and work
practises. The facility will be used to train and equip tradespeople with skills
well into the future.

Renewable Energy Innovation Fund
The ACT Government will seek to recapitalise its Renewable Energy
Innovation Fund and make further investments in ACT energy industry
development, following the completion of the next renewableelectricity auction.

xxxii

AUSTRALIA'S NATIONAL HYDROGEN STRATEGYHYDROGEN FOR
TRANSPORT PILOT
The first public hydrogen
refuelling station in Australia
will be built in Canberra and ison track to be operational inearly 2020.
The ACT Government has partnered with Neoen, Hyundai
and ActewAGL on a hydrogen mobility demonstration
project, which includes refuelling infrastructure and theintegration of 20 hydrogen fuel cell vehicles into the ACT
Government fleet. The construction of the station andprovision of vehicles are being funded by industry, at no
cost to the ACT Budget, as a project funded from the ACT’srenewable electricity reverse auction.
This project will allow Canberra-based industry andresearchers to gain valuable firsthand knowledge ofhydrogen refuelling operating models, transport supply
chains, and consumer refuelling patterns.
The ACT Government offers stamp duty exemption for
new zero emissions vehicles, including hydrogen fuel cellvehicles, and offers a 20% discount on registration fees forzero emissions vehicles.
Image courtesy of ActewAGL.

1

AUSTRALIA’S
CLEAN HYDROGEN
POTENTIAL

A global transformation of the energy sector isunderway. To support a future where all our energy
comes from clean sources, the world needs clean,flexible, storable and safe fuels. Hydrogen has all ofthese characteristics. When used as a fuel, it
produces no carbon emissions, only water. It can besafely used in a broad range of applications.
Australia is well-placed to make hydrogen its next
big export. We have all the natural resources needed
to produce it, a track record in building large-scaleenergy industries and a reputation as a provenpartner to Asia’s biggest energy importers.
An Australian hydrogen industry could generate
thousands of jobs, many of them in regional areas. It
could add billions of dollars to GDP over coming
decades. Managed well, it could help us to reliably
integrate extensive renewable generation into theelectricity grid. Using hydrogen, we can reduce
dependence on imported fuels. And we can reducecarbon emissions, in Australia and around the world.
The National Hydrogen Strategy aims to lay thefoundation for Australia to capture the hydrogen
opportunity and become a leading player in a
growing global market.

1 | AUSTRALIA'S CLEAN HYDROGEN POTENTIAL

1GLOBAL ENERGY IS CHANGING
Energy markets across the globe are undergoing substantial change, driven by the need to reduce carbon
emissions while meeting growing demand for energy.
The falling cost of new energy technologies is aiding the change. The result will transform the ways energy is
produced and used.
We are already seeing unprecedented growth in low-emissions electricity generation. However, in otherenergy-consuming sectors, such as heavy transport, heavy industry and providing heat, the journey to clean
energy is less advanced. Decarbonising these sectors is an urgent challenge.

2

AUSTRALIA'S NATIONAL HYDROGEN STRATEGYA FUEL FOR THE 21ST CENTURY
Hydrogen is a flexible, safe, transportable and storable fuel. It can be used to power vehicles and generate heatand electricity. It is a key ingredient for producing chemicals such as ammonia and methanol.
When used as a fuel, hydrogen’s only by-product is water. There are no carbon emissions. But whether
hydrogen is truly a zero or low-emissions fuel depends on how it is produced. Pure hydrogen is not foundnaturally on Earth. It must be extracted from the substances that contain it – water mainly, but also coal,natural gas and biomass – and this takes energy. Because of this, hydrogen is better thought of as an energy
carrier than an energy source.

Producing clean hydrogen
Hydrogen can be produced from water in three main ways. One way is through a process known as electrolysis,
which extracts hydrogen from water using electricity. If renewable electricity is used, this process produces nocarbon emissions. We can call this clean ‘renewable hydrogen’. The other two ways are throughthermochemical reactions, using coal (in a process known as gasification) or natural gas (in a process known as
steam methane reforming). These latter two techniques are how most hydrogen is now produced. Using fossil
fuels means there are carbon emissions, but if these emissions can be captured at a high level and permanently
stored, clean ‘CCS hydrogen’ can be produced.
Figure 1.1 demonstrates the three main pathways to produce clean hydrogen. Hydrogen is versatile and can beused in a broad range of applications, as shown in Figure 1.2.
Figure 1.1 Production pathways for clean hydrogen

1 | AUSTRALIA'S CLEAN HYDROGEN POTENTIAL

3

Figure 1.2 Potential uses of Australian hydrogen

4

AUSTRALIA'S NATIONAL HYDROGEN STRATEGY

Using hydrogen
Hydrogen can be used, like natural gas, to heat homes and industry, and for cooking. Delivery of hydrogen forthese uses would most likely be via new or existing gas networks. Hydrogen can also be blended with natural
gas for heating and cooking.
Hydrogen can power fuel cell electric cars, trucks, buses and trains. The advantages of hydrogen powered
vehicles compared to battery electric vehicles are faster refuelling times and the ability to travel longer
distances carrying larger loads before refuelling. Refuelling hydrogen vehicles requires a network of refuelling
stations, similar to what exists for petrol and diesel.
Hydrogen can also be used to generate electricity (through fuel cells or being burned to drive turbines). If
made when there is surplus or cheap electricity available, hydrogen can be stored and then used to produce
electricity when there is insufficient electricity available from other sources. Hydrogen can also be used in
combination with renewable electricity to power remote sites like mines and small regional communities.
Finally, hydrogen can be exported, either as an energy carrier or for use as a chemical feedstock – hydrogen‘s
most common use today is as a chemical ingredient.

The world already safely uses hydrogen
Globally, hydrogen makers now produce about 70 million tonnes of hydrogen per year.1 A further
48 million tonnes is produced as a by-product of other industrial processes. The large majority of all hydrogenproduced comes from fossil fuels without carbon capture and storage. Renewable electricity is used to produce
less than 0.3%.1
Hydrogen is used for refining petrochemicals and making ammonia (which in turn is used mostly to makefertilisers). It is used in smaller volumes to make chemicals and metals, and in the electronics and glass making
industries. Though demand for it as an energy carrier is still small, there is growing interest in its use for suchthings as fuel cell vehicles.
The safety expertise, standards and regulations that industries have developed over decades of large-scalehydrogen use provide a solid platform on which to prepare for more widespread hydrogen use. Developing
protections for the safe use of hydrogen are discussed in Chapter 5.

1 | AUSTRALIA'S CLEAN HYDROGEN POTENTIAL

5GLOBAL MOMENTUM FOR CLEAN HYDROGEN
Three of Australia’s top four trading partners – Japan, the Republic of Korea and China – have already madeclear commitments to use clean hydrogen to decarbonise their energy systems.
Clean hydrogen is also gaining interest in Europe, especially in transport applications such as trains and lightvehicles. The United States is seeing similar growth.
Globally, industries such as shipping, steel making and chemical production see hydrogen as a long-term
alternative to their dependence on fossil fuels.
Interest has been bolstered by the falling costs to produce and use hydrogen. Over the past decade, forexample, the cost of generating electricity from wind has fallen by about 70%, and from solar PV by about
80%. The cost to make a hydrogen fuel cell, meanwhile, has fallen by about 60% since 2006.2 With foreseeable
technology improvements and higher manufacturing volume, it is anticipated that the cost of fuel cells mightfall by about another 30% by 2025.2 The cost of storing hydrogen will also become cheaper with scale,technology and efficiency improvements – by up to 40% as ammonia and up to 80% as liquid hydrogen.3
As costs fall, clean hydrogen will become increasingly competitive. When and where this occurs will also
depend on factors such as the cost of alternatives. This will vary across different uses of hydrogen. In certain
sectors, notably transport and industrial uses, the cost gap with other fuels is narrow and competitiveness inAustralia appears likely within a decade, as shown in Figure 1.3.4

Figure 1.3 Breakeven cost of hydrogen against alternative technology for major
applications, in 2030.

Chart is illustrative, as the exact breakeven point will be region-specific, and will bedifferent when comparing to other alternatives (such as petrol or diesel).66

AUSTRALIA'S NATIONAL HYDROGEN STRATEGYGlobal strategies support hydrogen’s future
Japan, the Republic of Korea, China, Germany, Britain, the European Union and New Zealand all have plans forclean hydrogen.5 In fact, around the world there are 19 other hydrogen strategies and roadmaps. The Future
Fuels Cooperate Research Centre (CRC) has identified key points in these plans:•

The drive to reduce carbon emissions has led to considerable interest in rapidly deploying hydrogentechnologies over the next several decades.

•

This could give rise to export opportunities for countries with a comparative advantage in producing
hydrogen.

•There is uncertainty about how quickly costs will drop and efficiencies improve for hydrogen andcompeting technologies.

•

Only a few countries are focusing on producing hydrogen, while many are focusing on using hydrogen.

•

The core focus of new strategies should reflect the broader international environment, address
barriers, and build on comparative advantages.

•

The timing and scale of activities should reflect the transition to hydrogen and how it can bepractically achieved.

•

Access to low-cost and low-emissions electricity is likely to be critical to hydrogen export trade in themedium term, along with the availability of carbon capture and storage.

•

International producers and users of hydrogen will need to collaborate on standards, technology andhydrogen certification.

The general consensus appears to be that large-scale and rapid deployment of hydrogen technologies will
emerge from 2030 onwards.

1 | AUSTRALIA'S CLEAN HYDROGEN POTENTIAL

7

The International Energy Agency and International Renewable Energy Agency are among thosepredicting significant growth in global demand for hydrogen. Analysis undertaken for the Strategy also
indicates growth in demand.6 Figure 1.4 shows a range of possible global demand outcomes to 2030
and 2050. The actual trajectory will depend on factors such as technological developments, policy
settings and consumer uptake. Chapter 2 explores possible scenarios in greater detail.

Figure 1.4 Range of possible hydrogen demand over the next three decades

8

AUSTRALIA'S NATIONAL HYDROGEN STRATEGYAUSTRALIA AS A SUPPLIER
OF CLEAN HYDROGEN
The global interest in clean hydrogen presents a major opportunity for Australia.
Australia has significant competitive advantages for developing a substantial hydrogen export industry.
It has all the natural resources needed to make clean hydrogen. It has a track record in building largescale energy industries. It has an established reputation as a trusted energy supplier to Asia. It cancompete with any other nation.6

1 | AUSTRALIA'S CLEAN HYDROGEN POTENTIAL

9Renewable energy
There is arguably no country better placed than Australia to harness solar energy. We have some of theworld’s best wind resources, especially on our southern and western coastlines. Tasmania, Victoria and
New South Wales also have major hydroelectric resources.
Based on the quality of wind, solar and hydro resources alone, Geoscience Australia estimates about
11% of Australia (872,000 square kilometres) could be highly suitable for renewable hydrogenproduction, as shown in Figure 1.5.7
However, producing hydrogen also requires water. So the most ideal sites for production facilities will
have access to renewable electricity and water supplies. Using desalinated seawater or waste water, if
available, may be the most feasible approach.
Figure 1.6 shows the coastal areas highly suitable for hydrogen production using electricity fromrenewable sources. These areas occupy about 3% of Australia (262,000 square kilometres).7 Analysis
indicates this amount of land could be used to make more than the global demand predicted by the
Hydrogen Council for 2050. It is worth noting that access to inland water would increase the area ofAustralia suitable for hydrogen production from renewable electricity.

Figure 1.5 Renewable hydrogen potential, without infrastructure constraints

120°

130°

140°

150°
-10°

DARWIN"NT

Prospective hydrogen production
regions of Australia"""

Renewable wind,solar and hydropower resource
potential, without infrastructure
constraints-20°

SCALE 1:14,000,000

QLD

0

500
Km

Spatial Reference: GDA 1994 Australia Albers

WA

Capital cities"

Hydroelectricity generation
Ports

SA

""

BRISBANEElectricity transmission lines
Protected/Unsuitable areas

"
"

NSW

"

"

PERTH

"

-30°

Suitability

High

"
"

ADELAIDE

"

"

"

"
"

"
"
""

"
""

""

"" "

"

"

-40°

"

"
" "" "
TAS
""""
"

"

"

"
""
"""

" """
"
"

Low

CANBERRA, ACT""""
MELBOURNE"

SYDNEY

"

"

VIC

"

HOBART© Commonwealth of Australia (Geoscience Australia) 2019 With the
exception of the Commonwealth Coat of Arms and where otherwise
noted, all material in this publication is provided under a Creative
Commons Attribution 4.0 Australia Licence.
(http://www.creativecommons.org/licenses/by/4.0/au/deed.en)eCat 130930
MAP PPI_19016-1b

10

AUSTRALIA'S NATIONAL HYDROGEN STRATEGY

Tools to estimate
Australia’s hydrogenproduction potential
Australia has developed an interactive toolfor hydrogen.
Potential investors can explore varioushydrogen production scenarios and identify
project sites by varying the priority of spatial
data relevant to hydrogen production site
selection - with a range of criteria. These
include criteria such as: proximity to relevant
renewable and fossil fuel energy sources,
water, electricity power lines, gas pipeline
easements, ports, CCS storage basins andindustrial zones.
Geoscience Australia has also published areport, Prospective hydrogen production
regions of Australia.7 Geoscience Australia’s
tool and report are available from its website.

Figure 1.6 Renewable hydrogen potential, including access to water, ports, pipeline easements
and electricity infrastructure
120°

130°

140°

150°
-10°

DARWIN

Prospective hydrogen production
regions of Australia

NT

Renewable Hydrogen– Future coastal production andconstrained by existing
infrastructure-20°

SCALE 1:14,000,000

QLD

0

500
Km

Spatial Reference: GDA 1994 Australia Albers

WA

Capital cities
Ports
Electricity transmission lines

BRISBANE

SA

NSW

-30°

Protected/Unsuitable areas

Suitability

High

PERTH
SYDNEYADELAIDE
VIC

Low

CANBERRA, ACT
MELBOURNE

-40°

TAS
HOBART© Commonwealth of Australia (Geoscience Australia) 2019 With the
exception of the Commonwealth Coat of Arms and where otherwise
noted, all material in this publication is provided under a Creative
Commons Attribution 4.0 Australia Licence.
(http://www.creativecommons.org/licenses/by/4.0/au/deed.en)eCat 130930
MAP PPI_19016-2b

1 | AUSTRALIA'S CLEAN HYDROGEN POTENTIAL

11

WATER FOR HYDROGEN PRODUCTION
While the water required for a large-scale hydrogen production industry will be significant, it is not unusualcompared with other industrial uses.
Figure 1.7 shows the theoretical amount of water needed to produce a kilogram of hydrogen for eachproduction pathway.
In practice water requirements for hydrogen production will vary depending on factors including production
method and technology, the water content of the input fuel and the need for additional water for indirect
production requirements such as cooling and input water purification. Different electrolysis technologies
have differing water consumption requirements. Coal gasification water requirements will vary widely
depending on the coal’s moisture content and how the coal is prepared and processed.
To produce enough hydrogen to satisfy Japan’s projected annual imports in 2030 would require less than
one per cent of the water now used by Australia’s mining industry each year. To be a major supplier of alarge-scale global hydrogen industry in 2050, however, would require more water. Under strong hydrogen
growth settings, water consumption in 2050 in Australia may be the equivalent of about one-third of thewater used now by the Australian mining industry.
Australia will therefore need to consider how to balance hydrogen’s demands with other water priorities. In
many areas there will be limited capacity given existing demand from agriculture, industry, mining andhouseholds. Other uses for water may have higher economic, social or cultural value. Social acceptance ofhydrogen production will depend on it not unduly affecting these existing uses.
Some regions, such as Tasmania, have abundant fresh water. There are also options to increase supply,
including recycling and desalination. The cost of the electricity to desalinate seawater to produce hydrogenis minor – likely less than five cents per kilogram of hydrogen.
Figure 1.7 Theoretical water consumption by three production pathways

These are theoretical amounts of water based on the chemical pathway for each process. In practice waterrequirements for hydrogen production will vary depending on production method and technology, watercontent of inputs, and additional water needs for processes like cooling and input water purification.

12

AUSTRALIA'S NATIONAL HYDROGEN STRATEGY

Fossil fuels and carbon capture and storage
Australia is also well situated to take advantage of carbon capture and storage technologies to produce
low-emissions hydrogen from coal and natural gas. Carbon capture is likely to be more cost-effective forhydrogen production than for electricity generation. This is because the carbon emissions are separated
as part of the hydrogen production process. They are easier to capture because the gas mixture
produced during coal gasification and steam reformation is at much higher pressure than the flue gases
produced during electricity generation. To produce hydrogen from natural gas or coal at acceptably low
levels of carbon emissions, capture rates of 90% or more will likely be required. These rates aretechnically feasible.8
The best areas for CCS hydrogen production would be close to coal or gas sources and to subsurface
storage for carbon dioxide. Geoscience Australia has identified Australia’s most prospective areas,considering these two requirements along with pipeline access and availability of water (in this case,not limited to desalination).7 Figure 1.8 shows these areas. In the near term, the best CCS opportunities
are in the Carnarvon Basin; off-shore Western Australia (the site of one of the world’s largest carbon
capture and storage projects on Barrow Island); in the Gippsland Basin, in offshore Victoria (site of the
CarbonNet project); and onshore regions near the Cooper Basin (Queensland and South Australia), andSurat Basin (Queensland).
Given interest from international partners in projects such as the Hydrogen Energy Supply Chain in the
Latrobe Valley – a pilot project looking at the viability of producing hydrogen from the valley’s coalreserves and exporting it to Japan – CCS hydrogen may be an acceptable option in some potential
markets to meet decarbonisation goals. Establishing carbon capture and storage sites will, of course,
require close engagement with nearby communities.

Figure 1.8 Fossil fuel with CCS production potential, based on proximity to advanced CCS sites
120°

130°

140°

150°
-10°

DARWIN

Prospective hydrogen production
regions of Australia

NT

CCS Hydrogen– Advanced development
SCALE 1:14,000,000
-20°

QLD

0

500
Km

Spatial Reference: GDA 1994 Australia Albers

Capital cities

WA

Ports
Gas pipeline
Protected/Unsuitable areas

BRISBANE

SA

NSW

-30°

Suitable offshore storage basins

Suitability

High

PERTH
SYDNEYADELAIDE
VIC

Low

CANBERRA, ACT
MELBOURNE

-40°

TAS
HOBART© Commonwealth of Australia (Geoscience Australia) 2019 With the
exception of the Commonwealth Coat of Arms and where otherwise
noted, all material in this publication is provided under a Creative
Commons Attribution 4.0 Australia Licence.
(http://www.creativecommons.org/licenses/by/4.0/au/deed.en)
Pipeline routes provided by GPinfo petroleum database.
eCat 130930
MAP PPI_19016-4b

1 | AUSTRALIA'S CLEAN HYDROGEN POTENTIAL

13

Supportive environment for industry
Government policies and regulatory settings support industry development. Australia is one of theeasiest places in the world to do business, especially in comparison to other potential hydrogenproducers.9 We welcome foreign investment, and our record with investors in large-scale exportindustries is regarded as being exemplary. Development finance facilities such as the Clean Energy
Finance Corporation, the Northern Australia Infrastructure Fund and various state initiatives can provide
tailored support for hydrogen-related investments.

Growing hydrogen expertise
Australia sits near the top of global research impact rankings for hydrogen, and it leads the world on
Normalised Citation Impact for research into storage, distribution and use.10 Australia’s research,development and demonstration community works extensively with other prominent hydrogen-active
countries, providing a strong foundation for further future collaboration. More than 30 pilot projects
across Australia are developing capability in producing, storing, transporting and using hydrogen,supported by Commonwealth, state and territory governments.

Gas and renewable energy expertise
Australia has useful expertise in building new large-scale industries, notably the liquefied natural gas
export industry and the renewable energy sector. Since the 1960s, the Australian LNG industry has
grown to become one of the world’s biggest exporters of LNG. More recently, Australia has become aworld leader in renewable energy deployment.

14

AUSTRALIA'S NATIONAL HYDROGEN STRATEGYCREATING A NEW ENERGY INDUSTRY FOR
AUSTRALIA, PART ONE: THE LNG EXAMPLE
Australia now exports $50 billion of LNG a year. Australia is vying with Qatar as the world’s largest exporter of LNG,
accounting for more than 20% share of global exports.11
To get to this position took decades of vision, learning from experience, and a willingness of industry and government
to take risks together, and leverage the connection between domestic and export opportunities.
Figure 1.9 LNG exports over the past three decades 121963 Woodside granted North West Shelf oil andgas tenements
1967 Commonwealth Government introduces the
Petroleum (Submerged Lands) Act 1967
1979 Western Australian Government underwrites
the future LNG export industry by entering
long-term take-or-pay contracts for the NorthWest Shelf Venture (NWSV)
1981		 NWSV signs formal LNG sales agreement witheight Japanese gas and power companies
1984 First domestic gas delivered to WA by NWSV.
1989 First export of LNG from Australia by NWSV.
1995 Discovery of the Bayu-Undan field north-westof the Northern Territory
1999 Commonwealth establishes annual Offshore
Petroleum Exploration Acreage Release topromote oil and gas exploration

2006 First LNG exports from the Northern Territory
2008 LNG production commences at the fifth andfinal LNG processing train at the NWSV
Karratha Gas Plant
2009 Blueprint for Queensland’s LNG industry
released2012 LNG production commences at Woodside’s
Pluto LNG Plant near Karratha, Western
Australia
2015 First LNG exports from Queensland
2015 Australia becomes second-largest LNG
exporter in the world
2016 LNG production commences at Gorgon Gas
Plant at Barrow Island, Western Australia
2017 LNG production commences at WheatstoneGas Plant near Onslow, Western Australia

2000 Queensland Government announces 13% Gas
Scheme, sparking an estimated $1 billion ofcoal seam gas development over the next
seven years24

1 | AUSTRALIA'S CLEAN HYDROGEN POTENTIAL

15CREATING A NEW ENERGY INDUSTRY FOR
AUSTRALIA, PART TWO: WIND AND SOLAR
ENERGY IN AUSTRALIA
Australia can also build on world-class renewable electricity experience. Between 2018 and 2020, we
will install more than 16 gigawatts of wind and solar, an average rate of 220 watts per person per year.
This is four to five times the rate in Europe, Japan, the US or China, and ten times the world average.13
Australian governments have created enabling conditions for much of this investment.
Figure 1.10 Growth of Australian wind and solar capacity 14

1997 First grid-connected wind turbine installedat Kooragang Island, NSW (600 kW)

2012 Clean Energy Finance Corporation createdto facilitate investment in clean energy

1998 First solar farm installed at Singleton, NSW(200 kW)2013 Number of homes with solar panels
reaches 1 million

2001 Mandatory Renewable Energy Target
commences with target of an extra
9,500 GWh in 20102015 ARENA co-funds development of 500 MW
large-scale solar competitive round2010 Renewable Energy Target expands withlegislated target rising to 45,000 GWh(amended to 33,000 GWh in 2015)2012 Australian Renewable Energy Agency
created to increase supply andcompetitiveness of renewable energy

16

AUSTRALIA'S NATIONAL HYDROGEN STRATEGY2018 Number of homes with solar panels
reaches 2 million
2020 Renewable Energy Target expected to bereachedBENEFITS FOR ALL AUSTRALIANS
Seizing the hydrogen opportunity can benefit all Australians. A new industry will create jobs andeconomic growth, contribute to a cleaner environment, strengthen industrial competitiveness andenhance Australia’s fuel security.

Jobs and prosperity
A cautiously optimistic scenario could see an Australian hydrogen industry generate about 7,600 jobs
and add about $11 billion a year in additional GDP by 2050.6 If global markets develop faster, it could
mean another ten thousand jobs and at least $26 billion a year in GDP.
The jobs created will include technicians, tradespeople, engineers and professionals. Many of the jobs
will be in regional areas, especially around ports and industrial clusters where development is most
likely to occur.
Like other resource industries, an Australian hydrogen industry could also export more than thecommodity. There could be a valuable secondary market in expertise, selling technical skills, equipment,
intellectual property, education and training.
Hydrogen can be used to refine minerals, produce chemicals or manufacture steel. These are currently
emissions-intensive industries. A local supply of clean hydrogen gives domestic businesses anopportunity to create jobs and take a share of potential future markets for low-carbon products such as
green ammonia, green fertilizer and green steel.

A resilient and diverse energy system
Hydrogen technologies are well-suited to balancing supply and demand in an electricity grid that
increasingly relies on variable renewable sources such as solar and wind. If managed well, this could
lower electricity costs for consumers.
In a rapid demand-response scenario, when electricity supply exceeds conventional demand, hydrogenelectrolysis can be ramped up within seconds; when electricity demand exceeds supply, hydrogenelectrolysis can be equally rapidly ramped down. This makes hydrogen production from electrolysis
well-suited to renewable electricity generation – it can run when renewable electricity is abundant anduse electricity which would otherwise be curtailed. This can improve project economics.
In areas where renewable energy varies with the seasons, hydrogen can be produced in large volumes
during times of plentiful supply, such as in summer for predominantly solar regions. It can then be usedin times of limited supply to generate electricity through fuel cells or gas turbines. Or, it can be stored asgas for winter heating.

A cleaner environment
Australia’s potential to produce clean hydrogen doesn’t just support carbon emissions reduction. Its
potential as an industrial and transport fuel provides a pathway to eliminate the nitrous oxides, sulfur
oxides and particulate pollution associated with burning fossil fuels. Improved air quality is likely to
reduce a range of respiratory ailments, cancers, and the health costs associated with them.

Fuel security
Using locally made hydrogen can help reduce Australia’s heavy dependence on importing liquid fuels,
especially for transport. This would potentially strengthen Australia’s strategic security and maximise
our energy resilience. The Australian Government has considered the opportunity for hydrogen alongwith other alternative fuels to improve Australia’s resilience to disruptions in fuel supply through the
Liquid Fuel Security Review.15 Reducing fuel imports could also improve Australia’s terms of trade.

1 | AUSTRALIA'S CLEAN HYDROGEN POTENTIAL

17

CAPTURING AUSTRALIA’S CLEAN
HYDROGEN OPPORTUNITY
Australia must be strategic to capture the hydrogen opportunity and be one of the world’s great
energy players.
The Australian Government has supported nine projects in the past two years alone. The state
and territory governments have also made early moves through supporting specific projects
and in some cases, releasing their own hydrogen strategies.
These strategies allow them to prioritise action areas that make sense for their resources, needs
and strengths. The purpose of the National Hydrogen Strategy is to coordinate all these actions
and provide a strategic vision for Australia’s national hydrogen industry.

18

AUSTRALIA'S NATIONAL HYDROGEN STRATEGYEndnotes
1

International Energy Agency 2019, The Future of Hydrogen, https://webstore.iea.org/the-future-of-hydrogen

2

United States Department of Energy 2017, DOE Hydrogen and Fuel Cells Program Record.
Accessed from: https://www.hydrogen.energy.gov/pdfs/17007_fuel_cell_system_cost_2017.pdf

3Bloomberg New Energy Finance 2019, Hydrogen: The Economics of Storage, p. 2

4

McKinsey & Company 2019, The hydrogen opportunity for Australia (presentation to Australian Energy Week, sources for analysis include: McKinsey projectteam, DoE, BNEF, Energy Insights, IEA, IHS Markit)

5

Kosturjak, A, Dey, T, Young, M, D, Whetton, S, 2019, Advancing hydrogen: Learning from across the globe, Future Fuels Cooperative Research Centre,
https://www.futurefuelscrc.com/files/download/450181d39712b07, accessed 11 November 20196

Deloitte 2019, Australian and Global Hydrogen Demand Growth Scenario Analysis,
http://www.coagenergycouncil.gov.au/publications/reports-support-national-hydrogen-strategy

7

Geoscience Australia 2019, Prospective Hydrogen Production Regions of Australia,
https://d28rz98at9flks.cloudfront.net/130930/Rec2019_015.pdf, accessed 11 November 20198

Bui, M, et. al 2018. Carbon capture and storage (CCS): the way forward. Energy & Environmental Science, 11(5), 1062-1176, p. 1078

9

The World Bank, 2019 Ease of doing business index, https://data.worldbank.org/indicator/ic.bus.ease.xq, accessed 11 November 201910 Normalised Citation Impact (NCI) measures citation impact relative to a world average. It is one of the most robust metrics available and is used by leadinginternational bibliometric institutions, though there are others. Further discussion of Australia’s current research strengths will be available in a forthcoming
CSIRO report, National Hydrogen Research, Development and Demonstration (RD&D) Priorities & Opportunities for Australia.
11

Commonwealth of Australia 2019, Resources and Energy Quarterly June 2019 Historical Data;
https://publications.industry.gov.au/publications/resourcesandenergyquarterlyjune2019/index.html, accessed 11 November 2019.

12 Hydrogen Strategy Group 2018, Hydrogen for Australia’s Future, p. 50
https://www.chiefscientist.gov.au/wp-content/uploads/HydrogenCOAGWhitePaper_WEB.pdf
13 Stocks, M, Baldwin, K, Blakers, A, 2019, Powering ahead: Australia leading the world in renewable energy build rates.
https://energy.anu.edu.au/files/Renewable%20energy%20target%20report%20September%202019_1_0.pdf accessed on 11 November 201914 Data (actual and forecast) from the Clean Energy Regulator, provided on 17 October 2019.
15 Commonwealth of Australia 2019, Liquid Fuel Security Review – Interim Report, Commonwealth of Australia 2019, p 54-55.
https://www.environment.gov.au/system/files/consultations/7cf6f8e2-fef0-479e-b2dd-3c1d87efb637/files/liquid-fuel-security-review-interim-report.pdf
accessed 11 November 2019

1 | AUSTRALIA'S CLEAN HYDROGEN POTENTIAL

19

20

AUSTRALIA'S NATIONAL HYDROGEN STRATEGY

2

MAKING
AND TAKING
AUSTRALIA’SOPPORTUNITY

Australia’s natural resources, investment
environment and track record as an energy
exporter provide a strong foundation to build aclean hydrogen industry. Even so, there is a need
to be strategic, with scale and timing depending
on how global demand evolves.
All decisions to act in an uncertain environment
come with risks. These must be balanced against
the risks from not acting. A strategic approach isan adaptive approach, taking the steps that
position us for growth without losing the ability
to adjust to changing circumstances.
Imagining alternative future scenarios can help
us shape that adaptive approach, by identifying
the outcomes and events that could trigger
decisive steps.

2 | MAKING AND TAKING AUSTRALIA'S OPPORTUNITY

21

POSSIBLE HYDROGEN FUTURES
The global energy system has many dynamically evolving and interrelated parts. The size and timing ofAustralia’s hydrogen opportunity could play out in many different ways.
Industry strategies and policy choices in other countries, including for emissions reductions and for
economic growth, will influence their future energy choices. Expected technology cost reductions
are promising but yet to be realised. History has shown, though, that technology developments canoccur faster than expected and competition can emerge from many corners. Other countries are
already moving to establish trading arrangements and position themselves for hydrogen growth.
To identify and shape the path Australia takes, we must understand the drivers behind different
futures and what those futures might mean for the scale and timing of hydrogen opportunities.
Besides business as usual, the Strategy considers three scenarios (Figure 2.1) for hydrogen growth.
These scenarios represent different pathways for technology and market development.1
The scenarios consider additional demand from new hydrogen uses in energy or industrial processes.
In the future, existing demand for hydrogen, currently met by traditional (non-clean) hydrogenproduction, could be replaced by clean hydrogen. Current global demand for hydrogen is around70 million tonnes per year.2
Figure 2.1 Global hydrogen market growth scenario outcomes

The scenario outcomes (see Appendix A) emphasise the diversity of pathways that could lie ahead.
The range of additional global demand is between 2 and 9 million tonnes in 2030; and from around 20
to over 230 million tonnes in 2050.
An Australian hydrogen industry could generate about 7,600 jobs and $11 billion in GDP in 2050 withtargeted global deployment; if global markets develop faster, consistent with the energy of the futurescenario, estimates rise to around 17,000 jobs and $26 billion in GDP.

22

AUSTRALIA'S NATIONAL HYDROGEN STRATEGYSCENARIO

Hydrogen: energy of the future• Deep and rapid global
decarbonisation• Australia leads in thriving
global market• Hydrogen is a fuel ofchoice for importers,industry, transportand heatingThis scenario provides insights into what very strong adoption ofhydrogen in global energy systems could mean for Australia. There isstrong uptake of hydrogen across all promising uses, including for
pipeline gas, transport fuel, steel making, and industrial and domestic
heating. Uptake is driven by strong and early global commitments to
reduce carbon emissions, supported by deep decarbonisation ofelectricity generation. Australia acts to create cost and innovation
advantages over export rivals in a thriving global market, and supplies
up to about 30% of demand in some Asian markets.

SCENARIO

Targeted deployment• Enhanced global efforts
on emissions reduction• Australia competitive instrong global market• Hydrogen complements
other energy innovations,with promising niches inindustry and heavytransport

This scenario envisages growing hydrogen use, targeted in high-value
sectors. For example, sectors with fewer low-emissions alternatives –such as steel making and other niche industrial and heavy transportapplications – may adopt hydrogen intensively even if uptake is low inother sectors such as light vehicles and domestic heating. This uptake isdriven by a step up in global efforts to reduce carbon emissions,
supported by progress towards lower emissions electricity. Australia is
an export leader in a smaller, but active, international hydrogen market.

SCENARIO

Business as usual• Global emissions
reduction aligned withcurrent policy
announcements• Australia loses
competitiveness
relative to export rivals

This scenario assumes the global market grows in line with existing
emissions reduction efforts, but Australia falls behind others. Without
the leadership of a major supplier of Australia’s calibre, hydrogen’s
global prospects are diminished. At the same time, export rivals
develop capability faster. Technology learning is slower, costs higher
and demand more subdued.

SCENARIOElectric breakthrough••Enhanced global efforts
on emissions reduction
Minimal new demand,with breakthroughs inother energy technology

This scenario imagines technology breakthroughs that mean clean
electricity (in combination with battery and pumped hydroelectricity
storage) can meet almost all energy needs. Electricity replaces the useof gas for heating and cooking, and the use of petrol and diesel in roadtransport. Consequently, despite strong global commitments to reducecarbon emissions, there is minimal uptake of hydrogen for energy.

2 | MAKING AND TAKING AUSTRALIA’S OPPORTUNITY

23

HOW THE SCENARIOS COMPARE1
The scenarios are not forecasts. They are possible futures. Comparisons with other published estimates arepresented in Figures 2.2 and 2.3.

Figure 2.2 Comparing 2030 global hydrogen demand growth estimates

Figure 2.3 Comparing 2050 global hydrogen demand growth estimates

24

AUSTRALIA'S NATIONAL HYDROGEN STRATEGY2 | MAKING AND TAKING AUSTRALIA’S OPPORTUNITY

25

CREATING A GLOBAL HYDROGEN FUTURE
Despite the uncertainty about the extent of global hydrogen demand growth over coming decades, thecase to act quickly to realise our full potential is clear. The business as usual scenario underlines thestrategic, economic and environmental benefits Australia may forego by taking a passive approach.
For a market to develop, it’s not just a matter of waiting for demand to occur. Australia has a role to playon the supply side. Investments in research and development that reduce production costs, for example,
will increase demand. This in turn will create incentives to invest in more production capacity andtechnological development, unlocking economies of scale, reducing prices further and stimulating moredemand. This mutually reinforcing cycle is shown in Figure 2.4.
We can watch for indicators of how this cycle is progressing, which scenarios are becoming more likely,
and where we can take action to drive the process for Australia’s benefit. Chapter 6 describes the
tracking and monitoring functions that will allow Australia to determine what kind of future is emerging
and how we can influence it.

Figure 2.4 Cycle of technology learning

26

AUSTRALIA'S NATIONAL HYDROGEN STRATEGYAN ADAPTIVE PATHWAY TO CLEAN
HYDROGEN GROWTH
Australian governments support an adaptive approach that means we can be ready to move quickly toscale up as signs of large-scale markets emerge.
A ‘review-revise-adapt’ feedback loop will support and refine actions as technology and marketschange (Figure 2.5). Some early actions are ‘no regrets’ steps we can take now. Others are steps weshould identify and plan for now, but only act on when the time is right.
This allows us to proceed without overreaching, locking out the ability to move quickly, or locking inactions that make it difficult to change course.
The adaptive approach is focused on actions that remove market barriers, efficiently build supply anddemand, and accelerate the global cost-competitiveness of Australia’s hydrogen industry.
The approach is guided by four principles:
1. Take an adaptive and nationally coordinated approach to support industry development, including
regular reviews
2. Prioritise regulatory consistency and a coordinated approach to project approvals
3. Support partnerships to activate the market
4. Put safety, environmental sustainability and benefits to Australians at the forefront.

Figure 2.5 Adaptive approach to industry development

2 | MAKING AND TAKING AUSTRALIA'S OPPORTUNITY

27

The actions by Australian governments are themed around seven areas.
• National coordination• Developing production capacity, supported by local demand• Responsive regulation• International engagement• Innovation and R&D• Skills and workforce• Community confidence
However the global market develops, Australian governments support a pathway for developing a local
industry, initially by removing regulatory barriers to hydrogen use and encouraging it through policies tohelp overcome investment barriers.
Mandating use of hydrogen will require evidence there will be a net benefit to consumers, and thatindustry can meet regulated requirements.

SHAPING THE FUTURE
Australia’s clean hydrogen opportunities are ours to make and take. Our own history shows us what it
takes to become an energy exporting powerhouse. Governments and industry have worked together
before to leverage global energy opportunities. It can be done again.

Endnotes

28

1Deloitte 2019, Australian and Global Hydrogen Demand Growth Scenario Analysis,
http://www.coagenergycouncil.gov.au/publications/reports-support-national-hydrogen-strategy

2International Energy Agency 2019, The Future of Hydrogen, p.32 https://webstore.iea.org/the-future-of-hydrogen

AUSTRALIA'S NATIONAL HYDROGEN STRATEGY

30

AUSTRALIA'S NATIONAL HYDROGEN STRATEGY

3

THE JOURNEYTO HYDROGEN
POWERHOUSE

The first steps in Australia's adaptive approach
position us to build a large-scale clean hydrogen
industry as international demand grows.
A key to Australia’s approach will be creatinghydrogen hubs – regions where users of hydrogenare co-located – in metropolitan, regional andremote areas.
These hubs will help the hydrogen industry in
the early stages of development. They will makeinfrastructure more economic, allow for efficiencies
from scale, foster innovation, facilitate the sharing ofexpertise and services and promote sector coupling.

3 | THE JOURNEY TO HYDROGEN POWERHOUSE

31

IMPLEMENTING AN ADAPTIVE APPROACH
Australia will take an adaptive approach to capitalise on growth in domestic and global hydrogen demand.
The early steps in this approach make sense under all the scenarios outlined in Chapter 2 because thepathways are largely the same until at least 2030. Development across the upcoming decade is likely tofall into two phases.

Foundations and demonstrations
In the first phase (already underway), our objectives are to:• create, test and prove Australia’s clean hydrogen supply chains• encourage global markets to emerge in line with mutual interests• build cost-competitive production capability.
Early actions will focus on developing clean hydrogen supply chains to service new and existing usesof hydrogen (such as ammonia production) and developing capability for rapid industry scale-up.
Demonstration scale hydrogen hubs will help prove technologies, test business models and build
capabilities.
Activities in this phase include:• Developing supply and demand: Pilots, trials and demonstration projects will drive technologicaldevelopment, develop industry expertise, promote international collaboration, enable business model
innovation and prove hydrogen supply chains at scale. Many projects that support this are already intheir early stages.
• Responsive regulation: Review and reform underpinning regulatory and legal frameworks, to develop
consistent approaches for:– efficient supply chains and markets– a supportive investment environment– robust training requirements and safety standards.
• International engagement: Strategic and coordinated international outreach, focused on key
markets, to harmonise standards and encourage trade.
• Skills and workforce: Improve workforce skills and establish training regimes.
• Community confidence: Work with industry to earn the community’s trust and build confidence inhydrogen.
• Innovation and R&D: Provide targeted support for research and development activities, with a focus
on international collaboration and Australian priorities.

32

AUSTRALIA'S NATIONAL HYDROGEN STRATEGYLarge-scale market activation
In this phase, which is likely to emerge later in the coming decade, activities will broaden towards
supply chain scale-up and large-scale market activation, as signals around the global hydrogen market
become clearer.
Many projects that will underpin this phase are already on the drawing board but it will take significant
investment and clear demand to make them a reality. Creating an attractive environment for industry
scale-up and supply chain development will be a shared responsibility of governments and industry.
Governments will consider the most appropriate support to scale up the industry and activate markets
in light of global signals. Support may include financing to support the development of clean hydrogen
supply chains, policies to create hydrogen demand or other policies that stimulate private investment.
Building widespread domestic hydrogen demand could include measures for:• using clean hydrogen for industrial feedstocks and heating• blending of hydrogen in gas networks• using hydrogen for long-distance heavy-duty transport and development of associated refuelling
infrastructure.
It is too early to say whether setting targets for hydrogen use in any sector would be warranted inAustralia. Governments have agreed that mandatory national targets would not be appropriate at thistime, but will revisit this question periodically as the market develops.
Activities in this phase would build on lessons from early projects. Scale-up and widespread deployment
will enable business model innovation, economies of scale, and improvements in processes, incremental
technology costs and safety. Activities to advance legal and regulatory reforms, engage internationally,build skills and workforce capability and earn community confidence would continue. Targeted support
for research and development will focus on step-change technology improvements, ongoing cost
reductions and operational efficiencies.
As the industry matures, governance structures and market settings will ideally emerge to foster
industry growth and competition, ensure community safety, protect the environment, provide broader
benefits to Australians and support ongoing innovation for cost reductions and operational efficiencies.

3 | THE JOURNEY TO HYDROGEN POWERHOUSE33

HYDROGEN HUBS AS A SPRINGBOARD
TO SCALE
Scale is key to becoming a globally competitive supplier. The International Energy Agency and otheranalysts have identified the development of hydrogen hubs as a cost-effective route to achieving scale.
Hubs aggregate various users of hydrogen into one area. Doing so minimises the cost of providing
infrastructure – such as powerlines, pipelines, storage tanks, refuelling stations, ports, roads or railway lines– and supports economies of scale in producing and delivering hydrogen to end users. Hubs also help focus
efforts for innovation and building a 'hydrogen-ready' workforce.
Hydrogen hubs could be situated to take advantage of existing users or potential hydrogen markets.
Supplying hydrogen to ammonia makers and oil refineries, for example, are clear early opportunities.
Some hubs will likely be located near port facilities, for access to export opportunities. Stakeholder
consultations and research has identified more than 30 ports as potential hub locations. These are outlinedin the ARUP report, Australian Hydrogen Hubs Study.1
Other hubs may be near or in cities or in regional and remote areas with high demand (such as a large minesite, for example). A number of metropolitan and regional councils across Australia are looking atopportunities to use hydrogen in their communities.
Factors influencing hubs site choice include:
•
•
•
•
•
•
•
•
•
•
•
•

access to demand
land availability and ownership
port potential (including current capacity, shipping distance and scalability)
grid connectivity
road and rail infrastructure access
access to existing gas transmission pipeline easements
water accesseconomic, social and environmental factors (such as workforce access, weather, safety and other factors)
stakeholder and community interest and acceptanceproximity to prospective hydrogen production regions
potential for hydrogen storage
electricity pricing.

Figure 3.1 overleaf shows a conceptual overview of a hydrogen hub.

Coupling of the electricity and export sectors
Sector coupling can provide additional value streams for hydrogen projects and other sectors. For example,
effective coupling of hydrogen production for export with electricity system operation could benefit boththe electricity and export sectors.
Electrolysers, which use electricity to produce hydrogen, can take advantage of excess power when windand solar generators are operating at capacity. They can be rapidly ramped up or down to provide demand
response and frequency control services to the electricity grid. At times when the electricity grid is underpressure, hydrogen production can be halted, and stored hydrogen converted back to electricity whenneeded to meet peak electricity system needs. Used effectively this could allow for better integration ofrenewable energy technologies into Australian electricity grids and improved investment confidence forrenewable energy projects. Further, it would increase options for electricity market operators to maintainpower supplies in an emergency, improving energy supply security and reliability.
A more secure and reliable grid will help to ensure constant energy supply to underpin hydrogenproduction. Changes to energy market operation may be needed to fully enable these benefits. Actions to
consider integration of hydrogen into energy markets are discussed further in Chapter 4.

34

AUSTRALIA'S NATIONAL HYDROGEN STRATEGYHubs and sector coupling
Hubs can facilitate sector coupling – integration of hydrogen production and end-use sectors tomaximise services and benefits. For example, in the future, hydrogen production and use will moreclosely link operation of the electricity grid, the gas distribution network for building heating and theinfrastructure supplying fuel for vehicles. Hydrogen production by electrolysis will use substantial
quantities of electricity and could provide grid firming and stabilisation services, while the hydrogenproduced could be used to refuel fuel cell vehicles, add to gas supply, provide feedstocks or heat or beexported overseas.
Intelligently co-optimising these links could create additional benefits such as greater fuel security,
energy storage, improved use of gas and electricity assets or better ability to integrate variable
renewable electricity sources such as wind and solar energy into electricity supply. These benefits will
be easier to realise in the early days through co-locating users in hubs.

Government action for hydrogen hubs
Australian governments support the hub model as a prospective early-stage approach to achieve thescale needed for a competitive industry. Most Australian jurisdictions have existing industry incentives
that could apply to hubs, such as concessional finance, access to funding for new public infrastructure,favourable zoning, prioritisation of planning approvals and public-private partnerships to share the costand risk of infrastructure development.
Governments will consider respective planning and funding timelines, and to the extent possible,
harmonise funding application processes for hub projects.
While hubs are expected to be early focal points for growth, governments and industry may choose tosupport projects outside of hubs. Not all hydrogen uses will necessarily occur in or around hydrogenhubs – back-up power supplies, remote area farms and defence facilities, for example. Pilots and trials
outside hubs may have other advantages. The development of hubs should be complementary to arange of applications for hydrogen. It will be important to be flexible and consider the merits of specificprojects on a case-by-case basis.

3 | THE JOURNEY TO HYDROGEN POWERHOUSE

35

36

AUSTRALIA'S NATIONAL HYDROGEN STRATEGY3 | THE JOURNEY TO HYDROGEN POWERHOUSE

37

Assessing hydrogen infrastructure needs
The growth of hydrogen hubs will increase the use of local infrastructure, such as for water, electricity,
gas and transport. Managing these new demands and expanding infrastructure capacity will require
strategic planning and coordination at all levels of government.
Australia will complete a National Hydrogen Infrastructure Assessment by the end of 2022, led andcoordinated by the Australian Government. The assessment will consider hydrogen supply chain needs
such as electricity and gas networks, water supply networks, refuelling stations, roads, rail and ports,
while taking into account local community concerns and priorities.
The Assessment will be reviewed and updated at least every five years to highlight priorities for future
infrastructure for competitive hydrogen supply chains.
The Assessment will be a useful tool to help inform government decisions around future support forpilots, trials, demonstration projects, approval processes and future hydrogen infrastructure.

Sector coupling in the blue economy
Clean hydrogen from offshore renewable energy could offer beneficial synergies by coupling with other marine
industries, potentially in offshore hydrogen hubs. For example, co-locating electrolysers with offshore windturbines can do more than just make hydrogen for exports and land-based users. It could supply oxygen toaquaculture industries in the same location, and provide fuel for vessels. Existing parts of platforms from
offshore oil and gas facilities could potentially be repurposed or reused to support hydrogen production.
Australia is exploring these and other opportunities through the Blue Economy Cooperative Research Centre.
The Tasmanian-based Centre brings together national and international expertise in aquaculture, marine
renewable energy and offshore engineering. It is supported by the Australian and Tasmanian Governments.

38

AUSTRALIA'S NATIONAL HYDROGEN STRATEGYACTIONS FOR DOMESTIC GROWTH
Over the next five years, with international markets still emerging and domestic demand uncertain,
investing in hydrogen production and use will be quite high-risk. But not investing is even riskier.
Without early-stage investment, Australia will fail to secure important supply relationships and capture
the market share on which further growth will be built. Governments can help industry to manage thisrisk by encouraging both supply and demand during this critical phase.

Supporting research, pilots, trials and demonstrations
along the supply chain
CSIRO regards Australia's research, development and demonstration (RD&D) capability as wellpositioned to support hydrogen industry development.2 Australian RD&D has the potential to reduce
capital and operating expenses through incremental improvements to mature technologies. We have theexpertise to deliver new technologies that offer step-change benefits to hydrogen supply chains. RD&D
will also help ensure and demonstrate safety across production, storage, transport and use of hydrogen;and in understanding and minimising environmental impacts of a large-scale hydrogen industry.
As well, our researchers and innovators will be able to provide clear direction on demonstration andscale-up requirements and help to maintain focused effort and a long-term perspective. Our RD&D
capability can support and encourage participation in both domestic and international forums. Many in
the Australian research and innovation community are already participating in national and international
collaboration and knowledge sharing.
Research institutions can also support efforts to educate the public about hydrogen and its benefits,with demonstration projects showing it can be used safely. This is particularly important given recent
findings that Australians view research institutions, such as CSIRO and universities, as a trusted andnon-biased source of information.3 While recognising that other innovation priorities may emerge,
governments agree that the following areas should be priorities for research, pilots, trials anddemonstration projects:• Switching current industrial hydrogen users to clean hydrogen• Investigating new opportunities for clean hydrogen such as clean ammonia exports, clean fertiliser
exports, industrial heating, iron ore processing and steel making• Using hydrogen in remote applications, such as in microgrids for mining and remote communities, in
farming and marine applications, at remote defence facilities and as fuel for heavy-duty mining vehicles• Opportunities for backup power supply, such as for mobile phone towers, hospitals and other criticalinfrastructure• Enabling blending of hydrogen with natural gas and eventual use of 100% hydrogen in gas networks• Using hydrogen for transport, with a focus on heavy and long-range road transport, rail and shipping• Optimising hydrogen and electricity system interactions, such as through timing hydrogenproduction to match variable renewable generation and through use of hydrogen for storage anddispatchable generation• Testing and proving technologies that reduce the cost of making, moving, storing and using hydrogen• Using water from sustainable sources, such as waste water or from seawater for hydrogen production• Developing cross-sector linkages and deriving value from sector coupling.
Further details about research priorities and opportunities for Australia can be found in the CSIRO
report, Hydrogen research, development and demonstration: Opportunities and priorities for Australia.4
Australian governments support improved knowledge sharing from hydrogen-related projects, to help
remove some of the information barriers the hydrogen industry faces and improve community
awareness and rate of scale-up.
Jurisdictions often have funding arrangements in place to support industry pilots, trials anddemonstrations. Governments may consider coordinating their respective funding arrangements tofacilitate larger hydrogen projects.

3 | THE JOURNEY TO HYDROGEN POWERHOUSE

39

The ammonia advantage
The single biggest current use for hydrogen globally and in Australia is for making the chemicalammonia. Ammonia production could be a key driver in creating a clean hydrogen industry.
Ammonia, comprised of hydrogen and nitrogen, has been used in industrial applications for more thana century. Its major uses are in fertiliser, explosives and production of plastics, textiles, pesticides, dyes
and other chemicals. Although ammonia is toxic in its concentrated form, industry has a good safety
record in handling, storing and transporting it.
Globally, more than half of hydrogen produced goes to making ammonia.4 In Australia, it is almost
three-quarters, amounting to more than 350,000 tonnes of hydrogen a year. As typically occurs
elsewhere around the world, that hydrogen is currently made using natural gas without CCS.
Ammonia made from clean hydrogen provides an opportunity for Australia to jump-start large-scale
production of clean hydrogen for other uses.
Not only is potential global demand for ammonia produced from clean hydrogen a future export
market in itself, ammonia is also an immediately available carrier to export clean hydrogen. There are
currently no commercially available ships to transport liquefied hydrogen, but ammonia is alreadycommonly transported in tankers. It can be used as a carrier of hydrogen (just as hydrogen is a carrierof energy). It is easier to transport and store, can be used as a fuel and can be separated back tohydrogen and nitrogen when needed.
While it does take energy to turn hydrogen to ammonia and back again, CSIRO has developed a gamechanging technology that makes extracting hydrogen from ammonia much easier.
Given its potential as a cost-effective low carbon energy source, there is growing consideration of using
ammonia (produced with clean hydrogen) directly as a fuel.
Because of its toxicity, it is likely using ammonia for fuel will be limited to large-scale industrial
activities. Applications being explored include its direct use as fuel for ships, burning it alongside coalin existing coal-fired power stations and directly using it in fuel cells for electricity generation. Theseand other new uses for ammonia made from clean hydrogen could provide significant future growth forammonia in an otherwise relatively mature industry.

40

AUSTRALIA'S NATIONAL HYDROGEN STRATEGYCSIRO’S BREAKTHROUGH MEMBRANETECHNOLOGYCSIRO researchers have developed a new game changing technology to convert ammonia to high-purity
hydrogen at its point of use. The technology uses thin vanadium membranes to allow hydrogen to passthrough, while blocking all other gases.
CSIRO is currently completing a two year research project to develop and demonstrate a hydrogenproduction system that uses its vanadium membrane technology.

Image courtesy of CSIRO – CSIRO's vanadium membrane technology, which enables ammonia to be used as acarrier material for hydrogen storage and transport. © John Nguyen Photography.

3 | THE JOURNEY TO HYDROGEN POWERHOUSE
X | CHAPTER

41

Using clean hydrogen in Australian gas networks
Adding clean hydrogen in Australian gas distribution networks has advantages for stimulating early hydrogen demand
growth. This is because governments can directly influence when and by how much demand for hydrogen isincreased, whereas other sources of hydrogen demand depend on market uptake of hydrogen end-use technologies.
However, it is clear that further research and reforms are needed before widespread hydrogen blending in gas
distribution networks can occur. For example:• Analysis of the effects of gas blending on gas end users (including user piping and appliances) is still underway.
Many existing residential gas appliances are tested to operate under limited conditions with hydrogen at levels of
13%. This is to factor in a safety margin well above the likely naturally occurring levels of hydrogen in natural gas,
and is not meant to represent a safe upper limit for general appliance operation.
• It is unclear whether the definition of natural gas in the National Gas Law captures blended gas. The extent towhich the existing regulatory framework applies to blended gas and the implications of this for blending activities
are uncertain.
• Better understanding is needed of the technical and regulatory effects on gas networks and end users and thechanges required for blending above 10% and of switching to 100% hydrogen in Australian gas networks.
• Agreement is needed on how to determine and set safe upper limits for the injection of hydrogen in gas networks,
considering issues including appliance readiness and end user and market effects.
• Additional economic analysis is needed to understand the relative costs and benefits of blending and of switchingto 100% hydrogen into Australian gas networks.
• Analysis is needed of consumer experiences from blending trials currently underway.
Further details of required research and reforms can be found in the reports Hydrogen in the Gas Distribution
Networks and Hydrogen impacts on downstream installations and appliances developed by GPA Engineering.8, 9

Clean Gas Supply Using Hydrogen
Efforts are underway globally to investigate whether hydrogen can replace natural gas to decarbonise the gas supply.
In Australia, these considerations raise three questions: Is Australia’s gas infrastructure physically suitable? Is usinghydrogen achievable at a reasonable cost? Will consumers accept it?
Early investigations suggest hydrogen can be safely blended into Australia’s gas distribution networks at low volumes,
at yet to be determined limits. Preliminary technical and regulatory investigations have not found any significant
implications for gas quality or safety from blending up to 10% hydrogen by volume in gas distribution networks,
where the gas mixture is homogenous throughout the network.5
Changes will be needed to appliances and to gas networks to manage the different properties of hydrogen comparedto natural gas once these limits are achieved. A switch to 100% hydrogen use would be required at this time.
High level modelling of two pathways to decarbonise Victoria’s gas consumption – full conversion to renewableelectricity for existing uses of electricity and natural gas, and the use of hydrogen as a means of decarbonising gas
use – suggests that replacing natural gas use with hydrogen using existing infrastructure may be up to 40% lessexpensive than full electrification.6
Preliminary consumer research by the University of Queensland reveals that safety is consumers’ primary concern
when it comes to hydrogen use in homes and in the community. However, most of those surveyed indicated they
trusted that there would be adequate safety precautions in place should hydrogen use become widespread.7 They
wanted more information about the costs of appliance upgrades. Most people interviewed, however, wereunconcerned about blends of up to 10% hydrogen by volume.8
These results suggest that further investigation of the benefits of using hydrogen in future gas supply is warranted.

42

AUSTRALIA'S NATIONAL HYDROGEN STRATEGYTo help to inform this research and any reforms, governments support continuing pilots, trials anddemonstrations of hydrogen in gas distribution networks, where distributors can satisfy relevant
regulators that:• The distribution network is comprised of materials confirmed to be safe and suitable for hydrogen
blending• End user gas supply infrastructure (including appliances) is safe and suitable for hydrogen blending• The distributor has adequate safety and training procedures in place• The effects of blending for gas network users who currently use natural gas as chemical feedstock
have been considered and mitigated.

Government action from 2020
Governments will complete a review by the end of 2020. The review would:• Consider the application of the National Gas Law and relevant jurisdictional laws and regulations tohydrogen and advise the COAG Energy Council of recommended options to best address regulatory
ambiguity, remove unnecessary regulatory barriers and improve the consistency of laws acrossjurisdictions.
• Consider the economics of blending and of eventual use of 100% hydrogen in Australian gas
networks.
• Advise the COAG Energy Council recommended options for setting and allowing updates of upper
limits on the volume of hydrogen allowed to be blended in gas networks. This will focus on keeping
consumers safe, encouraging innovation and effectively managing any appliance readiness, end user
and market effects issues.
Once this review and any actions that might arise from the review are completed, governments may
support changes to gas networks and markets to allow widespread blending, and later, sole use ofhydrogen in gas networks. This would only occur where such use of hydrogen in gas networks:• Carries an acceptably low level of safety risk
• Is broadly supported by affected communities, and• Minimises impacts on gas prices and is in the long-term interests of consumers.
Australian governments may develop incentives to support the widespread blending of hydrogen inAustralian gas distribution networks at a later date. Where governments introduce such blending
incentives, Australian governments agree that, amongst other objectives, these incentives will:• Where appropriate, encourage blending to occur in a manner that supports the development ofhydrogen hubs
• Be consistent with the COAG Principles of Best Practice Regulation, in particular with respect to net
benefits to consumers.

Hydrogen in gas transmission networks
Lastly, regarding use of hydrogen in existing high pressure gas transmission networks, research has
identified potential pipeline safety and longevity issues. Australian governments will not support theblending of hydrogen in existing gas transmission networks until such time as further evidence emergesthat hydrogen embrittlement issues can be safely addressed. Options for setting and allowing forongoing updates of safe limits for hydrogen blending in transmission networks will form part of thereview in 2020. Industry and researchers will continue to complete relevant research through initiatives
such as the Future Fuels Cooperative Research Centre.

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43

AGIG BUILDS 1.25 MW HYDROGEN PLANT
FOR LOW-CARBON GASAustralian Gas Infrastructure Group (AGIG) – the nation’s largest gas distribution business – will producehydrogen from mid-2020 from a new $11.4 million demonstration plant. The hydrogen will be blended withnatural gas and provided to nearby homes and businesses.
AGIG’s facility will be called Hydrogen Park SA (HyP SA) and feature a 1.25 MW electrolyser to producehydrogen using renewable electricity from the grid and on-site solar. The electrolyser will play a role inshowing how this technology can be integrated into electricity networks to help stabilise grid supply,
providing an important service supporting renewable electricity generation. The South AustralianGovernment supported HyP SA with a $4.9 million grant.

Artist impression of AGIG’s proposed Hydrogen Park SA (HyP SA), featuring a 1.25 MW electrolyser capable ofsupplementing electricity grids with power generated from renewable sources.

44

AUSTRALIA'S NATIONAL HYDROGEN STRATEGYInitial steps towards using hydrogen for transport
One of the most exciting prospects for hydrogen is the transport sector – Australia’s largest end user ofenergy.10 Analysis by the International Energy Agency already shows hydrogen to be cost-competitive inselected uses.11
Hydrogen fuel carries much more energy than the equivalent weight of batteries. It complements
battery electric vehicle technology, by providing a viable alternative for powering buses, trucks andships carrying heavy loads and travelling long distances. Shorter refuelling times can support businessproductivity and consumer convenience, especially for consumers without off-street parking.
Further, public benefits such as improved fuel security (through greater choice of fuel supply options
and reduced dependence on fuel imports), reduced carbon emissions, cleaner urban air and noise
reduction provide added incentives for use.
Recognising these advantages, governments have a shared vision of hydrogen being a clean, costcompetitive fuel option for Australian land and marine transport, in particular for heavy-duty andlong-range transport applications.
Governments support an adaptive approach to building demand for hydrogen as a transport fuel. The
initial focus will be on transport tasks that do not require an extensive network of refuelling stations andoffer compelling performance and industry development advantages.

3 | THE JOURNEY TO HYDROGEN POWERHOUSE

45

Refuelling station viability can be improved where demand can be concentrated or coupled with otheruses of hydrogen. Refuelling stations established for large users could support hydrogen access forsmaller users, such as light vehicles. Governments also support refuelling stations on major freight andpassenger road corridors to support greater range for hydrogen vehicles. Preliminary work to map someof these requirements has already begun.12
Refuelling stations and hydrogen supply should develop in step with hydrogen vehicle deployment. This
will ensure refuelling stations are commercially viable. Fuel infrastructure priorities will be included in
the proposed National Hydrogen Infrastructure Assessment so Ministers can periodically reconsider theneed for action and calibrate relevant support mechanisms.
Early opportunities for hydrogen vehicles include industrial users, such as at ports, or remote industrialsites; ‘back to base’ transport applications, such as fleet vehicles and metropolitan public transport; andfreight transport.13 These and other opportunities are explored in the Aurecon report, Hydrogen forTransport: Prospective Australian use cases. Governments will consider opportunities for new vehicle
technologies, including hydrogen vehicles, in government fleets and large government contracts.
Consortium models that bring together vehicle manufacturers, hydrogen producers and fuel suppliers
could be used by industry to build up supply and demand at the same time and lower project risk.13
These multi-partner approaches can be effective for overcoming different supply and demand sidebarriers in a coordinated way. Governments will encourage consortium-based approaches to building
refuelling infrastructure, with industry contributing to associated costs to promote long-termcommercial viability.
Governments agree if providing support for refuelling infrastructure, to promote open access whereverpractical. This would encourage projects to unlock further investments, maximise public benefit andminimise barriers to scaling up the industry.
The COAG Transport and Infrastructure Council will finalise a work program in 2020 to address barriers
for low and zero emission vehicles, including hydrogen vehicles, in Australia. Key themes will include
government leadership, infrastructure availability, upfront purchase costs and model availability, andaccess to public information. It will complement and build on the National Hydrogen Strategy.
Actions to build hydrogen supply and demand are only one part of building a flourishing hydrogen
industry. Other actions are also needed to remove unnecessary market barriers, create an attractive
investment environment and build relationships to underpin global supply chains.

Endnotes
1

ARUP Australia Pty Ltd 2019, Australian Hydrogen Hubs Study,
http://www.coagenergycouncil.gov.au/publications/reports-support-national-hydrogen-strategy

2

CSIRO 2019, Hydrogen research development and demonstration (RD&D): Opportunities and priorities for Australia

3

Ashworth, P., Witt, K., Ferguson, M., & S. Sehic, 2019, Developing Community Trust in Hydrogen,http://www.coagenergycouncil.gov.au/publications/reports-support-national-hydrogen-strategy

4

Hydrogen Europe, Hydrogen Applications, https://hydrogeneurope.eu/hydrogen-applications , accessed 28 October 2019

5

GPA Engineering 2019, Hydrogen in the Gas Distribution Networks, p i,
http://www.coagenergycouncil.gov.au/publications/reports-support-national-hydrogen-strategy

6

Hydrogen Strategy Group 2018, Hydrogen for Australia’s Future, p 30

7

Lambert, V., and Ashworth, P. 2018, The Australian public’s perception of hydrogen for energy
https://arena.gov.au/assets/2018/12/the-australian-publics-perception-of-hydrogen-for-energy.pdf

8

GPA Engineering 2019, Hydrogen in the Gas Distribution Networks, p i,
http://www.coagenergycouncil.gov.au/publications/reports-support-national-hydrogen-strategy

9

GPA Engineering 2019, Hydrogen impacts on downstream installations and appliances,
http://www.coagenergycouncil.gov.au/publications/reports-support-national-hydrogen-strategy

10 Commonwealth of Australia 2019, Australian Energy Statistics, Table H2
11

International Energy Agency 2019, The Future of Hydrogen, p 135

12 Bureau of Infrastructure, Transport and Regional Economics 2019,
Location options for a freight-based limited initial deployment of hydrogen refuelling stations.
13 Aurecon 2019, Hydrogen for Transport: Prospective Australian use cases,
http://www.coagenergycouncil.gov.au/publications/reports-support-national-hydrogen-strategy

46

AUSTRALIA'S NATIONAL HYDROGEN STRATEGYTOYOTA AUSTRALIA'S HYDROGEN CENTRE
Up to 60 kg of hydrogen will be produced each day from Toyota’s new renewable energy hub
in Altona, Victoria.
Toyota is building a new Hydrogen Centre as part of a larger plan to transform Toyota's former
manufacturing site. An electrolyser and hydrogen refuelling station will be fully operational by late 2020. It
will be Victoria’s first commercial-scale station for refuelling hydrogen fuel cell vehicles. Solar PV and battery
storage will contribute to the incremental energy needs of the site.
An education centre is expected to be open in 2020. The Australian Renewable Energy Agency (ARENA) willcontribute $3.1 million to the centre, with Toyota investing $4.3 million.

Artist impression. Part of Toyota Australia's former Altona manufacturing facility will be transformed in a
Hydrogen Centre, set to be Victoria's first commercial-scale refuelling station.

3 | THE JOURNEY TO HYDROGEN POWERHOUSE

47

48

AUSTRALIA'S NATIONAL HYDROGEN STRATEGY

4

ENABLING
INDUSTRYGROWTHFor Australia to become a global leader in cleanhydrogen by 2030, governments, industry andthe community need to work together towards
a common vision.
This common vision includes:• An environment conducive to investment,
through better and more consistent
regulation• Helping to build relationships with futurecountry markets• Supporting early stage technology
development, then stepping back and letting
the market take over as the industry matures.
Governments also recognise the role regulation
can play in driving change and promoting
technology switching. In tandem, industry candrive growth by taking risks on new ideas andtechnology.
There are practical and immediate actions that
we can undertake to improve the regulatoryenvironment and build international
relationships.

4 | ENABLING INDUSTRY GROWTH

49

RESPONSIVE REGULATION
Governments play an important role in ensuring the regulatory environment is consistent andpredictable to support industry investment and innovation. While safety is paramount, regulation should
also be efficient to secure opportunities for jobs and economic development.
While existing regulations already apply to industrial applications of hydrogen in Australia, there is a needto prepare the legal framework for the large-scale production and use of hydrogen as an energy carrier.
A preliminary legal review across the jurisdictions has identified about 730 pieces of legislation and 119
standards potentially relevant to hydrogen industry and supply chain development. Of greatest priority
for further detailed legal review are the subset of these laws and standards identified as directly
applicable to hydrogen’s production, transport to market, use as a fuel, use in gas networks, safety,
project approvals, environmental protection and economic effects of the industry.1
Governments will review existing legislation, regulations and standards (legal frameworks) as needed toaddress whether their respective legal frameworks can support hydrogen safety and hydrogen industry
development. In their reviews, governments will consider the principles and prioritisation criteria set out
in the preliminary legal review, and the legislation, regulations and standards it identified.
Governments agree to coordinate reviews of legal frameworks where practical, and work together to:• Support the development of technical safety standards for the hydrogen industry, noting the role ofStandards Australia (refer to the box below).
• Consider and evaluate, with the aim of developing a nationally consistent approach as far aspracticable, regulatory models to address and support:– hydrogen safety, noting the role of SafeWork Australia (refer to the box below) and state-based
safety agencies– hydrogen industry developmentwith the aim of developing a nationally consistent approach as far as practicable.
• Where necessary, amend existing legislation and regulations or draft new legislation to addresshydrogen safety and support hydrogen industry development.

Standards Australia and SafeWork Australia
Standards Australia has formed a Hydrogen Technologies technical committee to facilitate developing
national hydrogen standards. Key functions of the committee include synchronising with international
standards and the national standards of trade partners, and working with other bodies to include
specific requirements for hydrogen in other standards frameworks.
SafeWork Australia is an Australian Government statutory body established in 2008 to develop national
policy relating to work health and safety (WHS) and workers’ compensation. It is jointly funded by the
Commonwealth, state and territory governments through an Intergovernmental Agreement. As anational policy body, SafeWork Australia does not regulate WHS laws. Australian, state and territory
governments retain responsibility for regulating and enforcing WHS laws in their jurisdictions.

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AUSTRALIA'S NATIONAL HYDROGEN STRATEGYShared principles for nationally consistent regulation
Delivering nationally consistent regulation is best supported by shared principles. For any new
regulations associated with hydrogen, Australian governments will follow the COAG Principles of Best
Practice Regulation.2 Further, the following will be important to advance industry growth:• Collaboration: aligning national and international regulations, considering the broader regulatory
ecosystem. Governments should share expertise to promote consistent frameworks• Fit for purpose: taking a systems approach to regulation, focusing on outcomes and performance.
Governments should ensure regulation is consistent with strategic objectives• Flexibility: recognising that, as the industry evolves, regulatory frameworks may require continuous
adjustment. Governments should use adaptive, iterative approaches, and use standards, codes ofconduct and other tools to allow flexibility• Innovation: fostering innovation and using models such as regulatory sandboxes and accelerators totest new ideas. Governments should be open to experimentation and new approaches to frameworks
appropriate for an emerging industry.

A coordinated approach to planning and regulatory
approvals for hydrogen projects
Most Australian governments have processes to facilitate their planning and regulatory approvals. This
includes coordinating the requirements of their various departments and regulatory agencies to give
project proponents a visible single entry point to access multiple regulatory approvals.
To improve their ‘hydrogen-ready’ capabilities in performing these functions, several state and territory
governments have established cross-government working groups to develop competency in andawareness of hydrogen across government. These groups identify and address regulatory gaps, andprovide advice to proponents of hydrogen projects to ensure compliance with existing requirements.
These groups include emergency services personnel and workplace safety, environmental, planning andtechnical regulation authorities involved in the permitting of hydrogen facilities.
To encourage private investment in hydrogen projects, governments will develop and incorporate‘hydrogen-ready’ capabilities into planning and regulatory approval mechanisms where required. For
example, more knowledge of how hydrogen projects work may be required to understand how theyshould be treated under government approval processes.
Industry associations should also play a role by sharing knowledge with their member businesses aboutnavigating approval processes. This includes informing members and regularly providing feedback togovernments on how processes are working from industry’s perspective.

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BUILDING MARKETS AND
ATTRACTING INVESTMENT
Integrating hydrogen into energy markets
As discussed in previous chapters, hydrogen enables energy to flow between the electricity, gas, andtransport sectors. Electrolysers, as large electrical loads, can be ramped up and down to provide demand
response and frequency control services for electricity systems. Hydrogen from electrolysis can be
blended with natural gas, stored as a gas, used as a fuel for transport or converted back to electricity as
needed to manage daily and seasonable variability in renewable energy supply or to meet peak energy
system needs.
Future energy market planning and reforms will need to account for how hydrogen will change the way
energy systems and markets operate. For example, AEMO's Integrated System Plan and current andfuture electricity market reforms should consider the impact of electrolyser loads and increased need forgeneration in electricity systems. Other areas where large-scale hydrogen production may affect energy
markets include:• ancillary services• grid connection arrangements• demand response mechanisms• investment coordination• the value of energy storage• management of distributed energy resources• network system strength and likely future congestion.
Governments will ask energy market bodies to account for the possible effects of hydrogen industry
growth in their planning and future reforms. Industry will need to communicate its preferred market
settings early to help guide market bodies.
Governments further agree to a future review, drawing on experience from pilot projects, trials anddemonstrations, to consider options for energy market reforms to improve the integration of hydrogen
into energy markets and to deliver additional benefits from hydrogen to consumers. The review will becompleted by 2024.

52

AUSTRALIA'S NATIONAL HYDROGEN STRATEGYHydrogen’s role in a secure and affordable energy supply
The domestic production and use of hydrogen offers potential energy security benefits for Australia.
These benefits could include improved ability to manage the integration of variable wind and solar
generation into electricity supply, improved electricity system resilience to generation and transmission
disturbances, greater diversity in energy supply options and reduced reliance on fuel imports.
To capitalise on these benefits, governments will consider the role of hydrogen in supporting Australianenergy security by 2025. Areas for consideration will include:• National Energy Security Assessments – reviews of Australia’s energy needs, and assessments ofrisks to energy supply and costs• Electricity, gas and liquid fuel emergency provisions – government powers and response plans that
apply in emergencies• Mandatory reporting requirements, such as those under the Petroleum and Other Fuels ReportingAct 2017 – requirements for the Commonwealth Department of the Environment and Energy tocollect data and report on the production and stockholdings of liquid fuels in Australia.
The ongoing availability and affordability of energy is key to Australia’s economic prosperity. This isparticularly important for large industrial business consumers who need affordable energy to remaincompetitive. Large-scale domestic hydrogen production and use may drive changes to the distributionof energy costs and availability of hydrogen for consumers.
To support continued energy affordability for all consumers, governments will monitor the impacts ofhydrogen on energy costs, and where necessary, consider the need for changes to energy affordability
and consumer protection policies.
Governments do not see a need to apply market constraints, such as domestic hydrogen reservations or
price caps, at this time. However, this stance will be revisited periodically as the market develops.

Certainty around taxation, excise and other fees orlevies for hydrogen
Most energy commodities produced are subject to taxation, excises, fees or levies. Hydrogen is not
explicitly considered as an energy source in these regimes. As hydrogen production and use grows,
appropriate taxation, excises, fees or levies could help ensure that the community shares in theeconomic benefits from developing a hydrogen industry. Australian governments recognise theimportance of the Australian public receiving a share of future benefits from a hydrogen industry andfor investors to have certainty about future revenue arrangements.
Governments will continue with the revenue arrangements that now apply to hydrogen, but may review
them in the future. Governments will consult industry and the community before making any changes tocurrent revenue arrangements that are specific to hydrogen. For indicators that may inform thesereviews refer to Chapter 6.
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INTERNATIONAL OUTREACH AND ENGAGEMENT
Partnerships for a global hydrogen market
Australia is already a valued and experienced energy provider to the Asian economies set to become majorhydrogen importers, such as Japan, Republic of Korea, Singapore, and Taiwan. Australia’s proximity to Asia,
abundant renewable energy assets and experience developing resources and energy projects position it to be
the hydrogen supplier of choice.

Bilateral partnerships to build markets
Australia sees bilateral agreements as crucial to indicate our commitment and capability as a hydrogen partnerof choice. Australia will be actively seeking to establish these partnerships and ensure they meet our national
interests.
Bilateral agreements between Australia and partner countries will ideally showcase both countries’ level ofambition, areas of mutual benefit and areas of comparative advantage. Agreements would also include acommitment to work together to develop common standards and international regulations, and encourage
industry participation in these processes. This could include participating in and promoting an internationalhydrogen certification scheme. Joint actions to address safety challenges will also be important to Australia.
Australia will also seek to work with bilateral partners to promote trade and investment in hydrogen. This will
include advocating for Australian industries’ engagement in the design of market settings that facilitate trade,long-term investment, regional price transparency, efficient market operation, and commitment to sharing
industry knowledge and skills between partners.
Australia also considers bilateral technical collaborations important to support the pace of research,development and deployment, and similarly, cooperation on pilot projects. Australia is already working withJapan on one such pilot project – the Hydrogen Energy Supply Chain.

Multilateral forums to promote efficient hydrogen tradeand innovation
Australia already engages on hydrogen-related issues across multilateral and regional organisations. To provide
our hydrogen industry with the best opportunity to develop and compete internationally, Australia willprioritise participating in forums that demonstrate leadership, shape the rules for hydrogen trade andinvestment, foster heightened sharing of best practices across research, development, deployment, andcommunity engagement, and foster private sector investment that helps develop hydrogen production and use.

Leadership
The G20 and the Hydrogen Energy Ministerial have shown strong leadership in advancing international support forindustry development. Australia is an active member of both and looks forward to continuing this engagement.

Shaping the rules
Australia will participate in forums such as the International Partnership for Hydrogen and Fuel Cells in the
Economy (IPHE), and others that focus on technical hydrogen industry standards and protocols to underpin
trade and investment. These could include issues like safety standards, developing regulations, codes andstandards and certification, trading and statistics benchmarks, intellectual property protection, and recognitionof education and skills.

Sharing best practices
Australia will use forums like the Clean Energy Ministerial, Mission Innovation and the Center for Hydrogen
Safety to advance international coordination, collaboration and sharing of best practices, including for
emergency services. Australia’s participation in the Center for Hydrogen Safety is discussed further in Chapter 5.
Our participation in these forums will help Australia influence the global pace of innovation, encourage ourindustry’s engagement and provide opportunities for research and development collaboration. These forums
also provide communication, education and outreach activities to increase government, industry andcommunities’ understanding of hydrogen.

Fostering private sector investment
Australia will work through the Clean Energy Ministerial and the Leadership Group for Industry Transition topromote private sector investment in transitioning carbon-intensive industries such as steel making from fossil
fuels to hydrogen.

54

AUSTRALIA'S NATIONAL HYDROGEN STRATEGYAustralia’s participation in global hydrogenforumsAustralian governments, businesses and researchers already participate in the following forums to progresshydrogen development:

•
•
•
•
•
•
•

•
•
•
•
•

Asia-Pacific Economic Cooperation (APEC)
Finance Ministers’ Coalition on Climate Action
Global Green Growth Institute (GGGI)Green Ammonia Consortium
Hydrogen Council
International Association for Hydrogen Safety (HySafe)
International Energy Agency (IEA) forums, including the Hydrogen Technology Collaboration
Programme, the Advanced Fuel Cells Technology Collaboration Programme and Tracking Clean Energy
Progress
International Maritime Organization Maritime Safety Committee
International Standards Organization (ISO) and International Electrotechnical Commission (ITC)
Mission Innovation and the Mission Innovation Clean Hydrogen Challenge
Organisation for Economic Co-operation and Development (OECD)
United Nations Framework Convention on Climate Change (UNFCCC)

Australia will continue to engage and work collaboratively with these initiatives where appropriate.

Hydrogen certification
Hydrogen consumers here and overseas will expect transparency around the environmental impacts of thehydrogen they use. While certification schemes generally focus on carbon emissions, there may also be scope
to consider other impacts, such as water consumption.
Ideally a single global certification scheme will emerge that facilitates international trade as well as providing
domestic consumers with the assurances they seek. Australia wants to be a leader in developing aninternational scheme. As far as practicable, any Australian domestic scheme should build on or harmonise withinternational certification schemes. We encourage Australian industry and customers to have a role in thedesign and development of the scheme. Consideration will be given to the European CertifHy framework indeveloping a certification scheme.
Australia does not want to see any international disagreement about certification delaying investment inhydrogen production. One way to avoid this would be to quickly establish a minimal certification scheme thatverifies and tracks production technology, scope 1 and scope 2 carbon emissions, and production location. The
scheme could be expanded later to include water consumption and other factors. Such an approach would
allow countries to set their own definitions of ‘green’ or ‘low-emissions’ hydrogen, with reference to agreed
international standards.

Building community confidence
As the hydrogen industry scales up and Australia becomes a major exporter, a certification scheme will be justone of the measures needed to meet community expectations and build trust and confidence. Measures will
also be needed to ensure compliance with environmental and safety regulations and standards, and that theAustralian public benefits through jobs and economic development.
Endnotes
1

Clayton Utz, 2019, Hydrogen Industry Legislation,
http://www.coagenergycouncil.gov.au/publications/reports-support-national-hydrogen-strategy

2Council of Australian Governments, 2007, Best Practice Regulation: A guide for Ministerial Councils and National Standard Setting Bodies, p 4,
https://www.pmc.gov.au/resource-centre/regulation/best-practice-regulation-guide-ministerial-councils-and-national-standard-setting-bodies
accessed 11 November 2019

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56

AUSTRALIA'S NATIONAL HYDROGEN STRATEGY5

BUILDING
BENEFITS FOR
THE AUSTRALIANCOMMUNITY

Building a clean hydrogen industry requires publictrust and confidence.
While a clean hydrogen industry will create newwell-paid jobs and contribute to the nation’s
economic prosperity, Australians expect this can beachieved without compromising safety, cost of living,water availability, access to land or environmental
sustainability.
This chapter outlines the actions governments willtake to ensure benefits and impacts are shared fairly
and that community concerns are heard andresponded to.

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57

COMMUNITY CONFIDENCE AND EDUCATION
Australian governments recognise a large-scale hydrogen industry can only be created with community
support. Central to earning public trust and confidence in the industry is ensuring that the production,
storage, transport and use of hydrogen is safe, environmentally friendly and in the public interest.
Community expectations about hydrogen are not unique: any proposed large industrial, renewableelectricity or resource project needs to address local concerns to earn the public’s confidence. Thisrequires engaging with local communities to ensure governments and industry take into accountsocietal expectations and respond accordingly.
Work to date has identified that raising public knowledge and awareness of hydrogen and its benefits is
critical to success. Lessons learned from other sectors show it is important for project proponents andgovernments to be visible and readily available to local people in areas being considered for projects.
Insights can be drawn from capturing real-time community feedback and providing immediate
information to answer concerns as they are raised. Ensuring the community has factual information froma source they trust is fundamental.
Building community support will be easier when there are explicit community benefits. These might be,for example, a reliable and affordable supply of hydrogen for heating, or new jobs.
A robust regulatory and enforcement regime for safety standards, and the presence of trained
emergency services personnel will also be required to ensure hydrogen is seen as safe.

Building community knowledge about hydrogen
Enhanced understanding of hydrogen is another key to increasing public confidence in a hydrogen
industry. A University of Queensland study suggests the more Australians know about hydrogen, themore likely they are to support developing a hydrogen industry.
While acceptance of hydrogen is likely to grow of its own accord as people get used to its everyday use,
public education will help accelerate the process. The University of Queensland study suggests
Australians want governments and trusted research institutions, such as the CSIRO and universities toprovide them with accessible, easy to understand information about the emerging hydrogen industry.1
Community consultations to inform the Strategy suggest the same.
To begin building community knowledge, Australia will develop a community education program toprovide clear and accessible information about hydrogen’s risks, benefits and safe use. The program willcommunicate the particular benefits hydrogen development can bring to regions as well as moregeneral benefits such as economic growth, lower carbon emissions and reduced air pollution.

58

AUSTRALIA'S NATIONAL HYDROGEN STRATEGYBRINGING THE MESSAGE HOME
Following the 8th International Conference on Hydrogen Safety, held in Adelaide, in September 2019, theSouth Australian Government hosted a hydrogen safety public forum, attended by students, representatives
from community organisations and interested members of the public.
International and local hydrogen experts spoke about how hydrogen is being delivered safely across many
applications. Attendees had a chance to inspect hydrogen vehicles and eat sausages cooked on a hydrogenfuelled barbeque.
Providing such opportunities for the public to see hydrogen used in day-to-day activities is an ideal way toincrease confidence in its large-scale use.

Enjoying a barbecue cooked with hydrogen. Image courtesy of Andre Gascoigne, South Australian Department
for Energy and Mining.

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59

Providing for community engagement
Giving local communities a say at the early stages of hydrogen project development is critical tobuilding trust. There is an opportunity to draw on lessons from other sectors to ensure best practice incommunity engagement.
Communities are diverse, and effective community engagement requires understanding thosedifferences.2 There is often benefit to building and maintaining ongoing relationships between
businesses, conservation groups, Indigenous groups and other interested stakeholder groups, theproject developer and local governments. Building such relationships takes time and will include a rangeof activities from one-on-one individual meetings, to small group discussions, as well as specificactivities such as focus groups, participatory planning exercises and public meetings. The test of these
efforts and activities is that they lead to meaningful outcomes for communities.2
A review by the University of Queensland of national and international resources to inform the Strategy
provides guidelines and tools for best practice community participation and engagement.2 The review
suggested criteria for best practice community engagement including:• have a clear purpose• be inclusive• be timely• be transparent• build relationships• create positive images around the momentum for change• be well-resourced in both time and money• be tailored to local needs
Australian governments support best practice for community engagement and its use to build
community awareness and ensure community engagement for large or significant projects.

Responsible industry development
Australians expect the hydrogen industry to listen and respond to community concerns, operate in asafe and acceptable way and protect the environment.
Focus group results suggest specific community interest in the number and type of local jobs theindustry might create, especially where hydrogen production facilities will take land away from other uses
and whether hydrogen production will put more pressure on water resources.2 Land and water concerns
were particularly pointed in farming communities, especially those with recent experience of drought.
Key to building community confidence will be providing accurate information and responding to thesecommunity concerns in a way that meets both legislative requirements and community expectations.
One opportunity is to work with local communities to ensure benefits are distributed as fairly as possible.
A focus on local outcomes will help to build trust in both project developers and government regulators.
Australian governments support the development and implementation of a set of industry undertakings toaddress community concerns and guide the development of Australia’s hydrogen industry. This work willbe led and designed by the Australian Hydrogen Council in collaboration with governments. It will specify
appropriate principles to safeguard the community, communicate issues and engage with regulators.

60

AUSTRALIA'S NATIONAL HYDROGEN STRATEGYWHAT DO AUSTRALIANS THINK OF HYDROGEN?
RESULTS FROM 2019 FOCUS GROUPSIn 2019, nine focus groups were conducted in Townsville,
Warrnambool and Darwin. Within each city, two focus groups
included the general public split into two age demographics(18-35 years and 35-65+ years), while a third comprised influential
stakeholders. Across the three groups a total of 72 people
participated: 25 in the 18-35 age group, 27 in the 35-65+ age groupand 20 influential stakeholders.
Overall support for Australianhydrogen industry development

What about water?

Across all public focus groups, only two participants
had heard about the National Hydrogen Strategy, withneither being able to provide any details about it.
However, just over half of the influential stakeholders
had heard of the Strategy, and were aware of many ofthe details.
After watching a video3 introducing hydrogen in theAustralian context, participants were enthusiastic about
the potential of hydrogen both within their respective
regions, as well as Australia more broadly. Many noted
how their level of understanding and support had
improved as a result of the focus group, and many were
eager for more information. Support grew whenparticipants heard about the environmental benefits
and the potential for more regional jobs. They
acknowledged the need to maintain safety and manage
community expectations about realistic timelines, andin particular, not creating false hope.

In Townsville and Darwin, there were mixed responses
around water availability. In Townsville, some felt there
was plentiful water with the Burdekin River being
nearby, while others were more skeptical. Concerns
were raised around competing uses for fresh water andthe issues that arose with the Murray Darling Basin.
There were questions raised about the likely byproducts from desalination and implications that may
arise for the Great Barrier Reef.

Renewable energy projects for towns
For large-scale solar developments, participants
had mixed responses. In Warrnambool, influential
stakeholders mentioned the Camperdown solar
farm failed to gain approval due to concerns overco-existence issues with agricultural land and withlandscape impacts. In contrast large scale winddevelopments were seen to be more accepted by thecommunity as there were a number of local wind farms
already in use.

5
5 || BUILDINGBUILDING BENEFITSBENEFITS FOR
FOR THETHE AUSTRALIAN
AUSTRALIAN COMMUNITYCOMMUNITY

61
61

WHAT DO AUSTRALIANS THINK OF HYDROGEN?
RESULTS FROM 2019 FOCUS GROUPS
Mixed feelings about carbon
capture and storage
Some participants in Townsville and Darwin were very
supportive of the concept of CCS hydrogen, but others
expressed reservations about whether CCS was reallysolving the problem of carbon emissions. In contrast,
all three focus groups in Warrnambool acknowledged
CCS has potential to reduce global emissions.

Economic benefits need to beshared fairly
Participants in Townsville and Darwin were positive
about the potential for hydrogen export to create jobs
and benefit the local economy. However, someparticipants in Darwin were concerned about a boomand-bust situation developing, and that a 'fly-in fly-out'
workforce might result. Older participants in
Warrnambool expressed concern about jobs being
created in metropolitan areas rather than regional areas.

Local interests come first
While the development of an export industry was
generally seen as a positive opportunity for Australia,
participants across all three cities thought the domestic
benefits from hydrogen should be prioritised, and that anational strategy should 'look after the locals'.

62
62

AUSTRALIA'S
AUSTRALIA'S NATIONAL
NATIONAL HYDROGENHYDROGEN STRATEGYSTRATEGY

People want to know more
Participants wanted access to factual information with
up-to-date information on costs, risks and benefits. They
wanted information from trusted sources, such as
governments and research institutions. Companies
operating in the hydrogen industry were also seen tohave a role to talk about specific projects and being able
to answer questions as needed.

Role of governments
Participants tended to see the Commonwealth as primarily
having an enabling and coordinating role. They were very
keen for the federal government to ensure a level playing
field between regions and states. There was some concern
about states and territories competing with each other tohost facilities. Therefore, it was seen as critical that theCommonwealth foster a collective rather than competitive
approach to developing the industry in Australia.

EDUCATION AND TRAINING
An important part of ensuring a clean hydrogen industry benefits Australians is providing opportunities
for the education and training needed to work in the industry.
As noted in Chapter 1, the industry could provide about 7,600 jobs in 2050 with targeted global
deployment – more if global markets develop faster.
Jobs will include engineers, technicians, gas fitters, plumbers and builders and other associated trades
and services. While many skills will be transferable from other sectors, ‘hydrogen-ready’ workers will
have to be qualified and licensed to safely and legally work with hydrogen. New training opportunities
will also be needed to avoid skills shortage in other sectors.

Technical and professional education
Governments, industry, educational institutions and registered training organisations will need towork together to develop and deliver quality education and training. Courses and qualifications willneed to take account of standards and codes as they are developed and reviewed over time, bothinternationally and domestically.
Governments will develop nationally consistent training materials and guidelines for procedures to dowith the production, handling, transport and use of hydrogen. The South Australian Government will
work with relevant agencies and industries from other states and territories to develop these guidelines
and training materials and facilitate knowledge sharing on safe work practices.

Work already underway
In the gas sector, the Gas Industry Reference Committee has a proposed schedule of work to review andupdate training packages (made up of units of competency, skill sets and qualifications) to includehydrogen by 2020–21, in relation to nationally recognised Vocational Education and Training
qualifications for the gas sector.
In other sectors, relevant Industry Reference Committees should also review and update their respective
training packages, to be ready for hydrogen uptake. If Industry Reference Committees recognise anurgent need for this work be completed, the COAG Energy Ministers could ask the Australian Industry
and Skills Committee to assist.
Reviewers of training packages should consult with occupational licensing regulators to ensure updated
training will lead to suitable licensing outcomes. The COAG Skills Council will endorse new and updated
units of competency and qualifications once they are approved by the Australian Industry and Skills
Committee.
Interstate workforce mobility is facilitated by the Mutual Recognition Act 1992. Under this Act, a person
who is licensed or registered in one state or territory, is entitled to be licensed or registered in anotherstate or territory for an equivalent occupational licence or registration, if one exists, in that state or
territory. The Trans-Tasman Mutual Recognition Act 1997 supports a similar arrangement between
Australia and New Zealand.
State and territory governments could consider a system of automatic mutual recognition
arrangements across jurisdictions for hydrogen-related occupations. These are arrangements that
permit a license holder working in another state or territory, without needing an additional licence orregistration. These arrangements are negotiated on a bilateral or multilateral basis between
participating states and territories.
In the longer term (2025–2030), Australian governments and industry will work together to ensure:• Industry Reference Committees are reviewing, updating and developing units of competency andqualifications, as hydrogen becomes relevant to the training packages of more industry sectors• clear pathways are established between hydrogen-related education and training and hydrogenrelated employment, including recognition of prior learning and credit• clear and accurate information is available to anyone interested in hydrogen-related education,
training and careers.
The COAG Skills Council will be responsible for endorsing any changes to hydrogen-related education,
training and career pathways as they are developed by Industry Reference Committees and approvedby the Australian Industry and Skills Committee.

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63

Hydrogen training for Australian emergency services
It is important to maintain a safe environment for the community, emergency services and industry.
Appropriate training for emergency services on how to deal with a hydrogen-related incident isessential to minimise the risk to themselves, others, and property and equipment. In the United States,for example, concerted effort has gone into training firefighters, police and ambulance officers to
respond to incidents that involve hydrogen. Involving emergency services in planning projects increases
community confidence and the likelihood of local support. As hydrogen technology becomes morewidespread, new and refresher training and assessments will be required to ensure hydrogen incidents
are appropriately dealt with and affected areas are safe.
COAG Energy Ministers will ask the Australian Industry and Skills Committee and Public Safety Industry
Reference Committee to update training packages for hydrogen safety, including the Public Safety
Training Package that contains training materials and guidelines for managing emergencies. This
training package will be updated by creating or importing hydrogen-related units, drawing on work by
the International Association for Hydrogen Safety (HySafe) and the US Center for Hydrogen Safety. To
enable this process, COAG Energy Ministers will write to the Chair of the Skills Council, which directs thework of the Australian Industry and Skills Committee.

Hydrogen training for regulators
Ensuring government regulators adequately understand hydrogen infrastructure, projects andtechnologies will help to achieve coordinated and efficient planning approvals processes. With
appropriate knowledge, regulators will also be able to help hydrogen project proponents navigate
government processes (which consultation has identified as a problem, especially in ‘first-of-a-kind’
projects). To develop an attractive investment environment, governments will need to prioritise prompt
resolution of new issues and ensure learnings are effectively shared.
Australian governments will review training and upskilling arrangements to ensure regulators haveadequate understanding of hydrogen infrastructure, projects and technologies.
Australian governments and industry will be at the forefront of responding transparently to community
interests and expectations, and will not wait for community concerns to emerge or accidents to happen
before putting measures in place.

Endnotes
1.

Lambert, V., and Ashworth, P., 2018, The Australian public’s perception of hydrogen for energy,
https://arena.gov.au/assets/2018/12/the-australian-publics-perception-of-hydrogen-for-energy.pdf accessed 11 November 2019

2. Ashworth, P., Witt, K., Ferguson, M., & S. Sehic 2019, Developing Community Trust in Hydrogen,http://www.coagenergycouncil.gov.au/publications/reports-support-national-hydrogen-strategy
3. Commonwealth of Australia 2019, Australia’s hydrogen opportunity, https://www.youtube.com/watch?v=nO63TyoTNxE accessed 11 November 201964

AUSTRALIA'S NATIONAL HYDROGEN STRATEGYAUSTRALIA COLLABORATES WITH GLOBALHYDROGEN COMMUNITY ON SAFETY AND
BEST PRACTICESThe Center for Hydrogen Safety is a globally oriented non-profit organisation dedicated to promotinghydrogen safety and best practices worldwide.
The Center identifies and addresses concerns regarding the safe use of hydrogen as a sustainable energy
carrier, in commercial and industrial applications and in hydrogen and fuel cell technologies. The UnitedStates is leading the Center in collaboration with 60,000 members from 110 countries.
Australia is a member of the Center and is exploring opportunities for Australia’s emergency service
personnel to learn best practices in hydrogen safety. Membership gives Australia access to accredited
training and outreach materials and to the Hydrogen Safety Panel – a team of experts who can provide
independent advice on safety aspects of hydrogen projects, infrastructure and regulation.
In a further example of international collaboration on hydrogen safety, Adelaide hosted the 8th International
Hydrogen Safety Conference in September 2019 organised by the International Association of Hydrogen
Safety (HySafe). This biennial conference is a platform for presenting and discussing new findings andinformation on hydrogen safety.

Community engagement on gas innovation. Image courtesy of Andre Gascoigne, South Australian Department
for Energy and Mining.

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66

AUSTRALIA'S NATIONAL HYDROGEN STRATEGY6

TRACKING
PROGRESSThe actions we are taking now are the start of along journey. Building a new industry is not
something that can happen overnight. It will taketime and we will need to be agile, innovative andcoordinated in our actions.
We will need to monitor global hydrogen industry
development and make judgements based on how
the industry evolves. To help with this process, wehave developed a set of industry development
signals.
We have also developed 15 measures of success,which align with the Strategy’s vision for theindustry in 2030.
Through comprehensive analysis of the futureenergy scenarios discussed in Chapter 2, we havedeveloped a set of signals for global industry
development. They focus on indicators of growthalong the supply chain, including investment,
production project scale, hydrogen costcompetitiveness and hydrogen use. Progress inresearch, development and demonstration is also
featured, highlighting that innovation andcommercialisation is still required in parts of the
supply chain.

6 | TRACKING PROGRESS

67

2020

2025
Clean hydrogen advances quickly

Investment

Corporate investment has taken a larger
share in mainstream hydrogen technologies
than government investment

Corporate investments in hydrogentechnology are not seen as viable andinvestor interest is increasingly directed toother technologies

Project scale

Hydrogen production projects are at100-300 MW or equivalent

Hydrogen production projects are still at
1-10 MW or equivalent

Hydrogen technology breakthroughs are
occurring and uptake is driving cost
reductions. Hydrogen scale is driving supply
chain costs down rapidly

No or few hydrogen technology
breakthroughs and there are minimal trials
underway, meaning costs are not falling

Capital is going into hydrogen supply chain
infrastructure. Export agreements exist

There have been no front end engineering
design studies commenced or completed forany commercial scale hydrogen export
facility

Industrial users of hydrogen as a chemical
feedstock are starting to place additional
value on clean hydrogen. Clean hydrogen isbeing blended into production atdemonstration scale (>10 MW)

Industrial users of hydrogen as a chemical
feedstock continue to use traditional
methods for producing hydrogen, rather thantrialling clean hydrogen production

Electricity grid support

Trials using grid connected electrolysis units
for load balancing, grid firming and ancillary
services are occurring

No or few trials underway using gridconnected electrolysis units for balancing,firming or ancillary services

No off-grid hydrogen trials have occurred

Mining and off-gridHydrogen is being trialled with large-scale
renewables in off-grid electricity generation
to displace diesel
Research, development and demonstrationof hydrogen heavy vehicles is progressing
favourably. Initial heavy haulage projects
exist and vehicle availability is being
addressed

Hydrogen starts to become cost-competitive
with fossil fuels but other low-emissions
technologies are attracting more investment
than hydrogen heavy vehicles

Light transport

Hydrogen refuelling infrastructure is being
deployed in major centres to service regularuse

Hydrogen starts to become cost-competitive
but other low-emissions technologies are
attracting more investment than hydrogenvehiclesGas networks

Cities and regions are pursuing opportunities
to blend hydrogen or even use 100%hydrogen in gas networks

Gas blending occurs in a piecemeal approach
and, in some cases, cities and regions begin
turning to other low-emissions technologies

Electricity generation

Projects are underway internationally to
co-fire or use hydrogen based fuels forelectricity generation

Limited or no trials underway internationallyto co-fire or use hydrogen based fuels forelectricity generation

Steel making

Research and development in hydrogenutilisation in steel making is occurring,
moving the process towards economic andtechnical viability

There is limited or no use of hydrogen insteel making and the process is not being
widely pursued in research and development

Industrial heat

Hydrogen is being trialled in at least nicheapplications, if not more widely, andindustrial stakeholder acceptance ofhydrogen is increasing

Hydrogen is being trialled in a few nicheapplications but other low-emissions
technologies are preferred

Cost-competitiveness

Australia's exports

Chemical feedstock

Heavy transport

68

Clean hydrogen advances slowly

AUSTRALIA'S NATIONAL HYDROGEN STRATEGY2030
Clean hydrogen continues to advanceClean hydrogen is falling behind

Investment

Corporate investment in hydrogen-related
technologies are commonplace and risks ofinvesting are well understood. Government
grant support no longer necessary to bridge
economics

Corporate investment in hydrogen-related
technologies is minimal or not occurring at all,with other technologies providing lowemissions solutions for most or all sectors

Project scale

A clean hydrogen production project is at500-1000 MW or equivalent

There are few, if any, large-scale cleanhydrogen production projects

Cost-competitivenessHydrogen is cost-competitive compared toalternative fuel sources for some, if not most,hydrogen applications

Hydrogen is not cost-competitive and othertechnologies are the preferred low-emissions
option in most, if not all, sectors

Australia's exports

Australia is a major global supplier of hydrogenand is leading innovation providing a costadvantage relative to other countries

The costs of hydrogen technologies in Australia
are not decreasing and a large-scale cleanhydrogen export market has not emerged

The cost of clean hydrogen is reducing as aresult of major advances in technology andmajor users are upgrading their facilities to use
clean hydrogenA small number of industrial users are placing
additional value on clean hydrogen but most
do notGrid connected electrolysis units are commonlyused to provide electricity system support
services. At least one trial using hydrogen forseasonal energy storage is underway

Electricity sector is using other balancing,firming and ancillary service technologies

Mining and off-gridOff-grid electricity systems commonly
incorporate renewables with hydrogen acting
as the load balance and seasonal battery

Off-grid trials have not been expanded due toeconomics or other technologies

Heavy transport

Hydrogen used in multiple heavy vehicle
applications rapidly becoming the choice for
new sales of on road heavy vehicles

Innovation and efficiency gains in other
low-emissions technologies for heavy vehicles
leads to low uptake of hydrogen heavy vehicles

Light transport

Widespread deployment of hydrogen refuelling
infrastructure in major centres and on
highways to service regular use

Innovation and efficiency gains in other
low-emissions technologies for light vehicles
lead to low uptake of hydrogen vehicles, evenin niche applications

Large-scale gas blending has occurred or isplanned to occur

Gas blending is occurring in some places, whileothers may be looking to other low-emissions
technologies

Large-scale projects using hydrogen-based
fuels for electricity generation are underdevelopment internationally

Limited or no activity beyond trials
internationally to co-fire or use hydrogenbased fuels for electricity generation

Steel making becomes a targeted application
for hydrogen and all new facilities producing
steel from iron ore use hydrogen

The use of hydrogen in steel making is limited
to ‘green steel’ or bespoke applications but isbecoming cost-competitive with steel madeusing metallurgical coalHydrogen is being deployed in at least nicheapplications, if not more widely, andmanufacturers are making equipment that can
accept 100% hydrogen

Innovation and efficiency gains in other
low-emissions technologies lead to low uptakeof hydrogen as a low-emissions heating option

Chemical feedstock

Electricity grid support

Gas networks

Electricity generation

Steel making

Industrial heat

6 | TRACKING PROGRESS69

MEASURING SUCCESSIn addition to looking out for signals, clear measures of success will also help guide decision making
during implementation of the Strategy. Australian governments have developed 15 measures of success,which align with the Strategy’s vision for the industry.
These measures will need to be compared to a baseline, which could be the state or value of eachidentified measure in 2020. It is likely that in many cases, the baseline is effectively zero, as the industry
is yet to develop. In other cases, the baseline might not be zero but we may not have an accurate
starting value, in which case we will provide our best guess. Again, this is an acknowledgement that theindustry is still very much in the early phases of forming.

A clean, innovative, safe and competitive industry
The first component of the vision is that the industry is clean, innovative, safe and competitive. A clean
industry is one that is low-emissions. An innovative industry is one that is continuously improving its
processes and technologies to be more efficient, have less impact on the environment and to bringcosts down. A safe industry is one in which safety is at the forefront of decisions and all those whointeract with hydrogen systems are educated about safe work practices and procedures. A competitive
industry is one that provides a globally cost-competitive product. A competitive industry is also
customer focused and is supported by an appropriately skilled, ‘hydrogen-ready’ workforce. Table 6.1
presents the 2030 measures of success to indicate we have developed a clean, innovative, safe andcompetitive industry.

Table 6.1 2030 Measures of success for a clean, innovative, safe and competitive industry
2030 Measures of Success

Clean

Carbon intensity of Australian hydrogen production meets community, customer
and consumer expectations and is decreasing over time
Australia has a robust certification scheme in place that is internationally accepted

Innovative

Safe

Australia is regarded as having a highly innovative hydrogen industry andsupportive research and development environment
The sustainability of water use for Australian hydrogen production continues
to improve
Australia has an excellent hydrogen-related safety track record
Australian hydrogen is cost-competitive domestically and internationallyCompetitive
Australia has a 'hydrogen-ready' workforce that is responsive to industry’s needs

70

AUSTRALIA'S NATIONAL HYDROGEN STRATEGYBenefits all Australians
The second component of the vision is an industry that benefits all Australians. Benefits can be in theform of jobs and prosperity, or in supporting communities that support the industry. Benefits can also
be realised through the domestic use of hydrogen, as use of hydrogen has the potential to reduce
emissions and air pollution, and provide Australians with a greater choice in energy and fuel sources.
Table 6.2 presents the 2030 measures of success that will show we’ve created an industry that benefits
all Australians.

Table 6.2 2030 Measures of success for an industry that benefits all Australians
2030 Measures of Success
Jobs andprosperity

Hydrogen is providing economic benefits and jobs

Supported
communities

Benefits are flowing back to communities where hydrogen industries are locatedDomestic use

The cost of clean hydrogen continues to decrease in part due to technology
developments and in part due to scale achieved in the development of a hydrogen
export industry
Hydrogen production and use is integrated into energy market structures

A major global player
The third component of the vision is to be a major global player by 2030. Being a major global playermeans we are, or are positioned to be, a supplier of choice to partner countries. To achieve this goal,
we’ll first need investment in the industry. We’ll then need to demonstrate that we can supply a costcompetitive product that meets our customers’ requirements. It will also be important that ourhydrogen capability is demonstrated and recognised.
Table 6.3 presents the 2030 measures of success that will show we’ve created an industry that is amajor global player.

Table 6.3 2030 Measures of success for being a major global player
2030 Measures of SuccessHydrogenexports
Investor
confidence
Hydrogencapability

We are among the top three exporters of hydrogen to Asian markets
Australia is seen as a destination of choice for international investors in hydrogen
We have major offtake or supply chain agreements in place with importing countries
We have demonstrated our hydrogen capability in all links of the supply chain

6 | TRACKING PROGRESS

71

NATIONALLY COORDINATING OUR EFFORTS
Our shared vision alone is not enough to achieve our goals. With interdependent actions spanning state,
territory and Commonwealth governments, following an adaptive pathway to clean hydrogen growth
calls for coordinated effort and clear direction.
State and territory governments have identified their specific priorities and areas of strategic advantage.
At the same time, much of the enabling work stemming from the Strategy will need to be cooperatively
pursued by all Australian governments. The Strategy accommodates both these imperatives.
The Australian public has high expectations that governments will work together and be accountable forachieving our goals. In addition, to be adaptive, we need to monitor global hydrogen developments andrefine our actions where necessary.
To track our progress against our measures of success and respond to indicators of global industry
growth outlined in this Chapter, the Australian Government will coordinate and publish an annual ‘Stateof Hydrogen’ report. This will be informed by rigorous and objective technical advice.

AUSTRALIA IN 2030
Achieving the measures outlined above by 2030 will indicate we’ve been successful in building an
Australian hydrogen industry. More importantly, they’ll set us up for the decades that follow, in which
we’ll continue to build the industry and help the world meet its energy needs and decarbonise its
energy supply.

72

AUSTRALIA'S NATIONAL HYDROGEN STRATEGYX | CHAPTER

73

74

AUSTRALIA'S NATIONAL HYDROGEN STRATEGY7

BEYOND2030

The long-term future of Australia’s hydrogen
industry looks bright. While we can’t see all its
detail, we are encouraged by the signals from our
major trading partners and the trajectory oftechnological development.
If industry and governments work together tobuild on our strong starting position and navigate
uncertainties well, we will reap rewards at anever increasing pace beyond 2030.

7 | BEYOND 2030

75

THE HYDROGEN HORIZON
Australian energy ministers share a vision for a clean, innovative, safe and competitive hydrogen
industry that benefits all Australians and is a major global player by 2030. But 2030 is just one
milestone on Australia’s hydrogen journey. More exciting possibilities lie beyond it.
Our major energy trading partners have set clear targets as waypoints to becoming ‘hydrogen societies’.
By 2050, Japan alone intends to import up to 10 million tonnes of hydrogen per year.1 The Republic ofKorea, China, and the United States will have millions of hydrogen vehicles on their roads.2 The
European Union will be using hydrogen for heating, transport and industrial applications to meet its
2050 target of net zero emissions.3
Beyond 2030, the cost of making, storing, moving and using clean hydrogen will become increasinglycompetitive with other fuels in an energy-hungry world. In a decade, leading energy analysts estimatethat in some applications, such as transport, the cost of clean hydrogen will be the same as or evencheaper than using fossil fuels.4, 5Abundant clean hydrogen will present the opportunity to decarbonise sectors currently dependent
on coal, gas and liquid fossil fuels, to revitalise old industries and start new ones. It could give
Australian manufacturers of energy-intensive products such as steel a comparative market advantage
because they will be able to use low-cost hydrogen near where it is produced.
Clean ammonia will be increasingly produced at large scale, including as an input for sustainablefertiliser.
Gas networks and appliances could be converted to 100% hydrogen, allowing households andbusinesses access to zero emissions heating and cooking, without losing the convenience to which
Australians are accustomed.
Mining vehicles, long-distance trucks and trains could be early adopters of hydrogen at scale, reducing
our need for imported oil and thereby enhancing Australia’s fuel security. By avoiding harmful local air
pollution, Australians would also enjoy cleaner air.
Today, the cargo and container ships ploughing the oceans are responsible for a significant proportionof global emissions of carbon dioxide and pollutants. Beyond 2030, these giant ships could be poweredby clean ammonia made from hydrogen, or powered directly by compressed or liquefied hydrogen.
High above the land and oceans, it is possible that hydrogen or its derivatives will be powering longdistance aeroplanes, helping to decarbonise the most challenging area of transport.
Back on land, hydrogen stored in giant underground formations could provide seasonal storage toimprove reliability in our major electricity networks.
Large solar and wind generation facilities for hydrogen production located in remote regions may beconnected to our electricity networks by long-distance, high-voltage transmission lines. They could
provide our electricity systems with a cost-effective adjunct to battery storage and pumped hydrostorage.
In the long term, the cost of shipping hydrogen will be substantially reduced. Where it is shipped asliquefied hydrogen, the significant energy required for liquefication will be supplied by low-cost
renewables. Where the hydrogen is shipped as ammonia, the efficiency of turning the ammonia backinto hydrogen at the import terminal will be enhanced by breakthrough separation processes,
possibly based on membrane technology already in development at the CSIRO.
The large-scale industries Australia could build would mean a new generation of investment. Many newjobs that arise would be familiar to Australians, including regional Australians, who have prospered
under earlier waves of resource expansion.
Like our existing resource industries, an Australian hydrogen industry could also export more than thecommodity. We could offer expertise, equipment, technology, education and training. Most of all we
could offer innovation, with our researchers and companies at the forefront of developing solutions forthe world.

76

AUSTRALIA'S NATIONAL HYDROGEN STRATEGY

THE FUTURE OF HYDROGEN IS OURS TO MAKE
Being ready for this future calls for action.
Governments and industry can work together to make and take Australia’s global hydrogen opportunities.
With partnerships and technology improvement, we can open new markets at home and abroad. We cankeep pushing costs down through innovation, learning-by-doing and economies of scale.
Australia has the resources and the experience as one of the world’s great energy exporters and renewableenergy pioneers to be a clean hydrogen powerhouse. Creating a consistent policy and regulatoryenvironment that encourages innovation will attract investment and make this new industry prosperous,
safe, environmentally sustainable and beneficial to all Australians.
The journey will not be easy, nor predictable. We cannot change the wind, but we can adjust our sails. We
can also influence the rules of the race. Our adaptive approach will ensure we keep all hydrogen possibilities
on the table. By starting early and being vigilant, we will see and seize opportunities as they emerge.
The opportunities are vast.

Endnotes
1

Ministry of Economy, Trade and Industry 2017, Basic Hydrogen Strategy Key Points,
https://www.meti.go.jp/english/press/2017/pdf/1226_003a.pdf, accessed 6 November 20192

Kosturjak, A, Dey, T, Young, M, D, Whetton, S, 2019, Advancing hydrogen: Learning from across the globe,
Future Fuels Cooperative Research Centre

3

European Commission 2018, A Clean Planet for all: A European strategic long-term vision for a prosperous, modern, competitive and climate
neutral economy, https://eur-lex.europa.eu/legal-content/EN/TXT/?qid=1560755311425&uri=CELEX:52018DC0773 ,accessed 14 November 20194

Bloomberg New Energy Finance 2019, Hydrogen: The Economics of Production from Renewables

5International Energy Agency 2019, The Future of Hydrogen, p. 170

7 | BEYOND 2030

77

STRATEGIC ACTIONSThe nationally coordinated government actions as outlined in the National Hydrogen Strategy are listed below.
The first action item appears in Chapter 2.

ACTIONAn adaptive pathway to clean hydrogen growth
2.1

Support an adaptive approach to industry development that means Australia can be ready to movequickly to scale up as signs of large-scale markets emerge. A ‘review-revise-adapt’ feedback loop will
support and refine actions as technology and markets change. This adaptive approach will focus onactions that remove market barriers, efficiently build supply and demand, and accelerate the globalhydrogen cost-competitiveness of Australia’s hydrogen industry.

2.2

Support an approach guided by four underpinning principles, namely to:•

Take an adaptive and nationally coordinated approach to support industry development, including
regular reviews•

Prioritise regulatory consistency and a coordinated approach to project approvals•

Support partnerships to activate the market•

Put safety, environmental sustainability, and benefits to Australians at the forefront.

2.3

Support actions themed around seven areas: developing production capacity, supported by local demand;
responsive regulation; international engagement; innovation and R&D; skills and workforce; community
confidence; and national coordination.

2.4

Support a pathway for developing a local industry, initially by removing regulatory barriers to hydrogenuse and encouraging it through policies to help early movers overcome investment barriers. Mandating
use of hydrogen will require evidence that a net benefit to consumers will result, or there is a consumer
willingness to pay where appropriate, and that industry can meet regulated requirements.

Large-scale market activation
3.1

Agree that early actions will focus on developing clean hydrogen supply chains to service new andexisting uses of hydrogen (such as for ammonia production) and developing capability for rapid industry
scale–up.

3.2

Agree to consider the most appropriate support to scale up the industry and activate markets in light ofglobal signals.

3.3

Agree that mandatory national targets would not be appropriate at this time but should be re-considered
periodically as the market develops.

Hubs and sector coupling

78

3.4

Support the hub model as a prospective early-stage approach to achieve the scale needed for acompetitive industry.

3.5

Agree to consider each governments’ respective planning and funding timelines, and to the extent
possible, harmonise funding application processes for hub projects.

AUSTRALIA'S NATIONAL HYDROGEN STRATEGYACTION
Assessing our hydrogen infrastructure needs
3.6

Agree to complete an inaugural National Hydrogen Infrastructure Assessment by 2022 led andcoordinated by the Commonwealth Government. The assessment will consider hydrogen supply chain
needs such as electricity and gas networks, water supply networks, refuelling stations, roads, rail andports, while taking into account local community concerns and priorities.

3.7

Agree to review and update the Hydrogen Infrastructure Assessment at least every five years, to highlightpriorities for future infrastructure needs for competitive hydrogen supply chains.

Supporting research, pilots, trials and demonstrations along the supply chain
3.8

Agree that while other innovation priorities may emerge, the following areas should be priorities forresearch, pilot projects, trials, and demonstration projects:•

Switching current industrial hydrogen users to clean hydrogen•

Investigating new opportunities for clean hydrogen such as clean ammonia exports, clean fertiliser
exports, industrial heating, iron ore processing and steel making•

Using hydrogen in remote applications, such as in microgrids for mining and remote communities, in
farming and marine applications, at remote defence facilities and as a fuel for heavy-duty mining
vehicles•Opportunities for backup power supply, such as for mobile phone towers, hospitals and other types ofcritical infrastructure•

Enabling blending of hydrogen with natural gas and eventual use of 100% hydrogen in gas networks•

Using hydrogen for transport, with a focus on heavy and long-range road transport, rail and shipping•

Optimising hydrogen and electricity system interactions, such as through timing hydrogen production
to match variable renewable generation and through use of hydrogen for storage and dispatchable
generation•

Testing and proving of technologies that reduce the cost of making, moving, storing and usinghydrogen•Using water from sustainable sources, such as waste water or seawater for hydrogen production•

Developing cross-sector linkages and deriving value from sector coupling.

3.9

Support improved knowledge sharing from hydrogen-related projects, to help remove some of theinformation barriers the hydrogen industry faces and improve community awareness and rate of scale–up.

3.10

Agree to consider options to facilitate larger hydrogen projects through coordinating respective funding
arrangements.

Using clean hydrogen in Australian gas networks
3.11

Support continuing pilots, trials and demonstrations of hydrogen in gas distribution networks, where
distributors can satisfy relevant regulators that:•

The distribution network is comprised of materials confirmed to be safe and suitable for hydrogen
blending•

End user gas supply infrastructure (including installations and appliances) is safe and suitable forhydrogen blending•

The distributor has adequate safety and training procedures in place•

The effects of blending for gas network users of natural gas as chemical feedstock or for compressed
natural gas have been considered and mitigated.

STRATEGIC ACTIONS SUMMARY | BEYOND 2030

79

ACTION
3.12

3.13

3.14

3.15

Agree to complete a review by the end of 2020. The review would:•

Consider the application of the National Gas Law and relevant jurisdictional laws and regulations tohydrogen and advise the COAG Energy Council of recommended options to best address regulatory
ambiguity, remove unnecessary regulatory barriers and improve the consistency of laws acrossjurisdictions.

•

Consider the economics of blending and of eventual use of 100% hydrogen in Australian gas networks.

•

Advise the COAG Energy Council recommend options for setting and allowing updates of upper limits
on the volume of hydrogen allowed to be blended in gas networks. This will focus on keeping
consumers safe, encouraging innovation and effectively managing any appliance readiness end user
and market effect issues.

Agree to consider changes to gas networks and markets to allow widespread blending, and later sole useof hydrogen, where such changes:•

Take place after the review at 3.12 and any actions that might arise from the review are completed•

Carry acceptably low levels of safety risk•

Are broadly supported by affected communities, and•Minimise impacts on gas prices and are in the long term interests of gas consumers.

Agree that, amongst other objectives, any government incentives to support the widespread blending ofhydrogen in Australian gas distribution networks will:•

Where appropriate, encourage blending to occur in a manner that supports the development ofhydrogen hubs•

Be consistent with the COAG Principles of Best Practice Regulation, in particular with respects to net
benefits to consumers.

Agree to not support the blending of hydrogen in existing gas transmission networks until such time as
further evidence emerges that hydrogen embrittlement issues can be safely addressed. Options for setting
and allowing for ongoing updates of safe limits for hydrogen blending in transmission networks will form
part of the review in 2020.

Initial steps towards using hydrogen for transport
3.16

Agree to a shared vision of hydrogen being a clean, cost competitive fuel option for Australian land andmarine transport, in particular for heavy duty and long range transport applications.

3.17

Support an adaptive approach to building demand for hydrogen as a transport fuel. The initial focus will
be on transport tasks that do not require an extensive network of refuelling stations and offers compelling
performance and industry development advantages.

3.18

Support refuelling stations on major freight and passenger road corridors, to support greater range forhydrogen vehicles.

3.19

Agree to include fuel infrastructure priorities in the proposed National Hydrogen Infrastructure
Assessment so Ministers can periodically reconsider the need for action and calibrate relevant support
mechanisms.

3.20 Agree to consider opportunities for new vehicle technologies, including hydrogen vehicles, in government
fleets and large government contracts.

80

3.21

Support consortium based approaches to building refuelling infrastructure, with industry contributing toassociated costs to promote long-term commercial viability.

3.22

Agree to promote open access to any government supported refuelling infrastructure, wherever practical.

AUSTRALIA'S NATIONAL HYDROGEN STRATEGYACTION
Responsive regulation
4.1

Agree for each jurisdiction to review its existing legislation, regulations and standards as needed todetermine whether their respective legal frameworks can support hydrogen safety and hydrogen industry
development.

4.2

Agree to consider the principles and prioritisation criteria set out in the preliminary legal review, and thelegislation, regulations, and standards it identified when undertaking the reviews outlined in 4.1.

4.3

Agree to coordinate reviews of legal frameworks where practical, and work together to:•

Support the development of standards for the hydrogen industry, including technical safety standards,
noting the role of Standards Australia•

Consider and evaluate regulatory models to address and support:–hydrogen safety, noting the role of SafeWork Australia and state-based safety agencies–

hydrogen industry developmentwith the aim of developing a nationally consistent approach as far as practicable•

Where necessary, amend existing legislation and regulations or draft new legislation to addresshydrogen safety and support hydrogen industry development.

Shared principles for nationally consistent regulation
4.4

Agree to seek national regulatory consistency for any new regulations associated with hydrogen, that
follows the COAG Principles of Best Practice Regulation.

A coordinated approach to planning and regulatory approvals for hydrogen projects
4.5

Agree to develop and incorporate ‘hydrogen-ready’ capabilities into planning and regulatory approvals
mechanisms where required.

Integrating hydrogen into energy markets
4.6

Agree to ask energy market bodies to account for the possible effects of hydrogen industry growth intheir planning and future reforms.

4.7

Agree to a future review, drawing on experience from pilot projects, trials and demonstrations, to consider
options for energy market reforms to improve the integration of hydrogen into energy markets and todeliver additional benefits from hydrogen to consumers.

4.8

Agree the review in 4.8 will be completed by 2024.

Hydrogen’s role in secure and affordable energy supply
4.9

Agree to consider the role of hydrogen in supporting Australian energy security by 2025. Areas forconsideration will include:•

National Energy Security Assessments•

Electricity, gas and liquid fuel emergency provisions•

Mandatory reporting requirements, such as those under the Petroleum and Other Fuels Reporting Act
2017.

4.10

Agree to monitor impacts of hydrogen on energy costs, and where necessary, consider the need forchanges to energy affordability and consumer protection policies.

4.11

Agree to not apply market constraints, such as domestic hydrogen reservations or price caps, at this time,
but to revisit this stance periodically as the market develops.

STRATEGIC ACTIONS SUMMARY | BEYOND 2030

81

ACTION
Certainty around taxation, excise and other fees or levies for hydrogen
4.12

Agree to continue with the revenue arrangements that now apply to hydrogen, with the option to review
them in the future.

4.13

Agree to consult with industry and the community before making any changes to current revenue
arrangements that are specific to hydrogen.

Bilateral partnerships to build markets
4.14

Support development of bilateral agreements to indicate our commitment and capability as a hydrogen
partner of choice and ensure arrangements meet our national interests.

4.15

Agree to work with bilateral partners to promote trade and investment in hydrogen, including advocating
for Australian industries’ engagement in the design of market settings that facilitate trade, long-term
investment, regional price transparency, efficient market operation, and commitment to sharing industry
knowledge and skills between partners.

Hydrogen certification
4.16

Agree that Australia will seek to play a lead role in the design and development of an international
guarantee of origin scheme.

4.17

Agree that, as far as practicable, any Australian domestic scheme should build on or harmonise withinternational certification schemes.

4.18

Agree to initially develop an international certification scheme that verifies and tracks:

4.19

•

Production technology•

Carbon emissions associated with production (scope 1 and scope 2)•

Production location.

Agree that in addition to the above, any subsequent expansion of an international certification scheme
could include water consumption and other factors.

Building community knowledge and engagement
5.1

Agree to develop a community education program to provide clear and accessible information about risks,benefits and safe use. The program will communicate the particular benefits hydrogen development canbring to regions as well as more general benefits such as economic growth, lower carbon emissions andreduced air pollution.

5.2

Support best practice for community engagement and its use to build community awareness and ensurecommunity engagement for large or significant projects.

Responsible industry development
5.3

82

Support the development and implementation of a set of industry undertakings to guide the developmentof Australia’s hydrogen industry. This work will be led and designed by the Australian Hydrogen Council incollaboration with governments. It will specify appropriate principles to safeguard the community,communicate issues and engage with regulators.

AUSTRALIA'S NATIONAL HYDROGEN STRATEGYACTION
Skills and training for the hydrogen economy
5.4

Agree to develop nationally consistent training materials and guidelines for procedures to do with the
production, handling, transport and use of hydrogen. The South Australian Government will work withagencies and industries from other states and territories to develop these guidelines and training materials
and facilitate knowledge sharing on safe work practices.

5.5

Agree to ask the Australian Industry and Skills Committee to bring forward the hydrogen-related reviews
and updates of training packages if Industry Reference Committees recognise an urgent need for thiswork be completed.

5.6

Agree to work together with industry to ensure in the longer term (2025–2030):

5.7•

Industry Reference Committees are reviewing, updating and developing units of competency andqualifications, as hydrogen becomes relevant to the training packages of more industry sectors•

Clear pathways are established between hydrogen-related education and training and hydrogenrelated employment, including recognition of prior learning and credit•

Clear and accurate information is available to anyone interested in hydrogen-related education,
training and careers.

Agree that state and territory governments could consider a system of automatic mutual recognition
across jurisdictions for hydrogen-related occupations under equivalent occupational licenses orregistration.

Hydrogen training for Australian emergency services
5.8

Agree to ask the Australian Industry and Skills Committee and Public Safety Industry Reference
Committee to update training packages for hydrogen safety, including the Public Safety Training Packagethat contains training materials and guidelines for managing of emergencies. This training package will be
updated by creating or importing hydrogen-related units, drawing on work by the International
Association for Hydrogen Safety (HySafe) and the U.S. Center for Hydrogen Safety. To enable this process,
COAG Energy Ministers will write to the Chair of the Skills Council, which directs the work of the AustralianIndustry and Skills Committee.

Hydrogen training for regulators
5.9

Agree to review training and upskilling arrangements for regulators to ensure they have adequate
understanding of hydrogen infrastructure, projects and technologies.

National coordination
6.1

Agree that establishing Australia as a major player in a global hydrogen industry by 2030 requires all
jurisdictions to work cooperatively towards this goal.

6.2

Recognise that jurisdictions will progress actions in line with their own priorities and areas of strategic
advantage.

6.3

Note that the Commonwealth will coordinate and publish an annual ‘State of Hydrogen’ report, informedby rigorous and objective technical advice.

STRATEGIC ACTIONS SUMMARY | BEYOND 2030

83

84

AUSTRALIA'S NATIONAL HYDROGEN STRATEGYAPPENDICESAPPENDIX A:SCENARIO ANALYSISAPPENDIX B:

ABBREVIATIONS, ACRONYMS AND GLOSSARY

APPENDIX C:SUPPORTING REPORTS

APPENDIX D:CONSULTATIONAPPENDIX E:TERMS OF REFERENCEAPPENDIX F.

COAG HYDROGEN WORKING GROUPAPPENDIX G:ACKNOWLEDGEMENTS

APPENDICES

85

APPENDIX A: SCENARIO ANALYSISThe tables below summarise analysis undertaken by Deloitte for the COAG Hydrogen Working Group. This analysis
was scenario-based, not predictive, and is based on specific assumptions, including that the over-riding influence on
investor decision-making will be technology and supply chain costs.
In practice, investors in hydrogen will consider costs amongst other factors, such as ease of doing business, risk
appetite and exposure, customer views on associated emissions, regulatory settings, access to capital, and their own
views and forecasts of future growth scenarios. For these reasons, the results below should be considered as guides
to the range of possible outcomes, rather than definitive trajectories that directly result from starting assumptions.
All the figures provided in these tables are from Deloitte’s Australian and Global Hydrogen Demand Growth Scenario
Analysis report unless stated otherwise.

YEAR 2019

GLOBAL DEMAND (MT H2)

AUSTRALIAN PRODUCTION (MT H2)

Current70

0.5

YEAR 2030

HYDROGEN:TARGETEDDEPLOYMENTELECTRIC
BREAKTHROUGH

BUSINESS AS
USUAL (BAU)

Global hydrogen demand above or below
2030 BAU (Mt H2)

6

1

-0.3

-

Additional Australian hydrogen production
above or below 2030 BAU (Mt H2)

1

0.2

0.1

-

Additional GDP above 2030 BAU(A$ billion)

0.6

0.2

Not modelled-

Additional jobs above 2030 BAU (FTE)

487

145

Not modelled-

Water requirements (GL)

16

5

3

2

Ratio of global emissions avoided to emissions
produced from Australian hydrogen (Mt CO2-e/ Mt CO2-e)1

6

0.6

0.5

0.3

Additional hydrogen produced by electrolysis(Mt H2)1

0.5

0.2

0.2

-

Additional electricity requirements forelectrolysis (TWh)

19

3

3

-

191 (solar)
1,234 (wind)

32 (solar)
209 (wind)

35 (solar)
228 (wind)

3 (solar)21 (wind)Land requirements for electrolysis if using
100% renewable electricity(square kilometres)286

HYDROGEN:
ENERGY OF THE
FUTURE

AUSTRALIA'S NATIONAL HYDROGEN STRATEGYYEAR 2050

HYDROGEN:
ENERGY OF THE
FUTUREHYDROGEN:TARGETEDDEPLOYMENTELECTRIC
BREAKTHROUGH

BUSINESS AS
USUAL

Global hydrogen demand above or below
2050 BAU (Mt H2)

156

25

-57

-

Additional Australian hydrogen production
above or below 2050 BAU (Mt H2)

18

6

-0.3

-

Additional GDP above 2050 BAU(A$ billion)

26

11

Not modelled-

16,923

7,628

Not modelled-

Water requirements (GL)

207

91

15

24

Ratio of global emissions avoided to emissions
produced from Australian hydrogen (Mt CO2-e/ Mt CO2-e)1

27

1.2

0.5

0.6

Additional hydrogen produced by electrolysis(Mt H2)1

18

4

2

-

Additional electricity requirements (TWh)

912

188

65

-

Land requirements for electrolysis if using
100% renewable electricity (square
kilometres)2

9,291 (solar),
60,160 (wind)

1,917 (solar),
12,415 (wind)

666 (solar),
4,312 (wind)

56 (solar),
363 (wind)

Additional jobs above 2050 BAU (FTE)

Table notes:
1.

Derived from Deloitte’s results.

2

Amount of land required for either solar or wind generation if all electrolysers deployed in this scenario used 100% renewable electricity

APPENDIX A | SCENARIO ANALYSIS87

APPENDIX B:
ABBREVIATIONS, ACRONYMS AND GLOSSARY
AEMO – Australian Energy Market Operator, responsible for operating Australia’s largest gas andelectricity markets
Ancillary services – used by electricity grid operators to manage power systems safely, securely, andreliably. These services maintain key technical characteristics of the electricity system, including
standards for frequency, voltage, network loading, and system restart processes
ARENA – Australian Renewable Energy Agency
ABS – Australian Bureau of Statistics
BEV – battery electric vehicle, fully electric vehicle with rechargeable batteries and no internal
combustion engine
Carbon emissions – carbon dioxide released to the atmosphere from burning fossil fuels, manufacturing,mining, land use and other activities
CarbonNet – a project investigating the potential for establishing a commercial-scale carbon capture andstorage (CCS) network. The network would bring together multiple carbon dioxide (CO2) capture projects
in Victoria's Latrobe Valley, transporting CO2 via a shared pipeline and injecting it into deep underground,offshore storage sites in Bass Strait
CCS or Carbon Capture and Storage – the process of capturing and permanently storingcarbon emissions
CEFC – Clean Energy Finance Corporation
CEM or Clean Energy Ministerial – a global forum held to promote policies and to share best practices
with the aim of accelerating a transition to clean energy. The forum includes partnerships andcollaboration between the private sector, public sector, non-governmental organisations, and others
Center for Hydrogen Safety – a not-for-profit, membership organisation established by the American
Institute of Chemical Engineers to promote the safe operation, handling and use of hydrogen
CertifHy – a project that operated from 2014 to 2016 to develop a common European-wide definition ofgreen hydrogen and hydrogen guarantee of origin scheme
Clean hydrogen – hydrogen produced using renewable energy or fossil fuels with substantial carbon
capture and storage
CHP – combined heat and power
CNG – compressed natural gas, generally used as a transport fuelCO2 – carbon dioxide
CO2-e – carbon dioxide equivalent, a metric used to compare the emissions from various greenhousegases to determine their individual and total contributions to global warming
CO2CRC or CO2 Cooperative Research Centre – an industry-led research organisation to research anddemonstrate CCS technology. The CO2CRC is supported by the Australian Government’s Cooperative
Research Centres Program
CSIRO or Commonwealth Scientific and Industrial Research Organisation – Australia’s national science
research agency
Demand response – a planned change in the power consumption of an electricity user to assist inmatching electricity demand and supply
Electrolysis and electrolysers – electrolysis is the process of using electricity to split water into hydrogenand oxygen. This reaction takes place in a unit called an electrolyser
Energy market bodies – bodies which have a role regulating and operating Australian energy systems
and markets

88

AUSTRALIA'S NATIONAL HYDROGEN STRATEGYEnergy markets – commodity markets that deal specifically with the trade and supply of energy,
generally electricity, gas, and liquid fuels
Energy systems – includes energy markets and energy supply networks
Excise – a tax on manufactured goods that is levied at the moment of manufacture, rather than at scale
FCEV – fuel cell electric vehicle – an electric vehicle that uses electricity from a fuel cell powered byhydrogen, rather than electricity from batteries
Future Fuels Cooperative Research Centre – an industry-led research organisation supporting Australianenergy sector transition to low-carbon fuels
G20 or Group of Twenty – an international forum for the governments and central bank governors from19 countries and the European Union (EU)Gasification – a process that converts fossil fuel based materials into gases
GDP – gross domestic product
GJ – gigajoule, a unit of electrical energy equal to 1,000,000 kilojoules
GWh – gigawatt hour, a measure of electrical energy in terms of the use of one gigawatt of power for one
hour, equal to 1,000 MWh
Hydrogen – a colourless, odourless, tasteless, flammable substance that is the simplest chemical elementin the periodic table. It is virtually non-existent in its free form on Earth, and requires energy to liberate itfrom the material forms in which it is found. See also clean hydrogen
Hydrogen Energy Ministerial (HEM) – an annual Ministerial forum initiated by Japan in 2018
HESC – Hydrogen Energy Supply Chain Project, a pilot project to produce and transport clean hydrogenfrom Victoria’s Latrobe Valley to Japan
Hydrogen hubs – aggregations of various users of hydrogen in one area. They may be in ports, cities, or
remote areas
ICE – internal combustion engine, typically running on petrol or diesel fuel
IEA – International Energy Agency
Intergovernmental Agreement – an agreement made between two or more Commonwealth, state andterritory governments that details commitments to cooperate on a specific matter of mutual interest
Integrated System Plan – a whole-of-system plan that provides an integrated roadmap for the efficientdevelopment of the National Electricity Market (NEM) over the next 20 years and beyond
IPHE – International Partnership for Hydrogen and Fuel Cells in the Economy
IRENA – International Renewable Energy Agency
JAEPA – Japan-Australia Economic Partnership Agreement
kWh – the amount of electrical energy provided by one kilowatt of power for one hour
Leadership Group for Industry Transition – an international public-private collaboration to drive
decarbonisation in carbon and energy-intensive sectors of the economy. It was launched under the
Industry Transition Track of the UN Secretary-General’s Climate Summit
LNG – liquefied natural gas, the form in which natural gas is transported over long distances
METI – Ministry of Economy, Trade and Industry (Japan)
Mission Innovation – a global initiative of 24 countries and the European Commission to accelerate clean
energy innovation
MWh – the amount of electrical energy provided by one megawatt of power for one hour. Equal to 1,000
kWh
NAIF – Northern Australia Infrastructure Facility
National Energy Security Assessments – reviews conducted by the Australian Government of Australia’s
energy needs, and assessments of risks to energy supply and costs

APPENDIX B | ABBREVIATIONS, ACRONYMS AND GLOSSARY

89

NEM – National Electricity Market – a wholesale electricity market that interconnects Queensland, NewSouth Wales, Victoria, South Australia, Australian Capital Territory, and Tasmania
PJ – petajoule, a unit of electrical energy equal to 1,000,000 gigajoules
Public-private partnership – a long-term contract between a private entity or consortium and agovernment, typically used by governments to pay for the delivery of public infrastructure, assets
or services.
R&D – Research and development
RD&D – Research, development and demonstration
Renewable energy – energy that is collected from renewable resources, which are naturally replenished
on a human timescale, such as sunlight, wind, rain, tides, waves, and geothermal heat.
Revenue arrangements – contributions to government revenues, which can be levied by governments onsources including income, business profits, or added to the cost of certain goods, services, andtransactions. Taxes, excises, fees and levies are examples of revenue arrangements
Scope 1 emissions – released into the atmosphere as a direct result of an activity, or series of activities at
a facility
Scope 2 emissions – indirect emissions from consumption of purchased electricity, heat or steam. Most
scope 2 emissions represent electricity consumption, but can include other forms of energy transferred
across facility boundaries.
Sector coupling – the increased linking of sectors through technology or product changes. Where thislinking is well managed, this creates opportunities for new or additional benefits and services. Hydrogencreates novel opportunities for sector coupling across electricity, transport, heating and industry, allowing
energy to be used in new ways to benefit users and the environment
Standards Australia – Australia’s peak standards development body. Standards Australia facilitatestechnical committees made up of stakeholders from government, business, industry, community,
academia and consumers to develop standards and technical specifications
Steam methane reforming – a method to extract hydrogen using natural gas. It involves catalyticallyreacting natural gas with steam to produce hydrogen and carbon monoxide (a mixture known as syngas).
A subsequent reaction involving more steam produces further hydrogen while also converting carbon
monoxide (CO) to carbon dioxide (CO2)
Supply chain – activities involved to make, move, store and use a productTWh – Terawatt hour, the amount of electrical energy provided by one terawatt of power for one hour,
equal to 1,000 GWh
VRE – Variable Renewable Energy – sources of renewable energy that fluctuate depending on resource
availability, such as wind, solar, wave and tidal power

90

AUSTRALIA'S NATIONAL HYDROGEN STRATEGYAPPENDIX C: SUPPORTING REPORTS
A number of reviews, studies, research and analysis have informed development of the Strategy.
Supporting reports are listed below and accessible on the COAG Energy Council website
http://www.coagenergycouncil.gov.au/publications/reports-support-national-hydrogen-strategy.

Commissioned reports
Australian Hydrogen Hubs Study
Consultancy: ARUP Australia Pty Ltd
Published: November 2019
Hydrogen for Transport: Prospective Australian Use Cases
Consultancy: Aurecon Australia
Published: October 2019
Hydrogen Industry Legislation
Consultancy: Clayton Utz
Date published: November 2019
Australian and Global Hydrogen Demand Growth Scenario Analysis
Consultancy: Deloitte
Published: November 2019
Hydrogen in the Gas Distribution Networks
Consultancy: GPA Engineering
Published: November 2019
Hydrogen Impacts on Downstream Installations and Appliances
Consultancy: GPA Engineering
Date published: November 2019
Developing community trust in hydrogen
Consultancy: University of Queensland
Published: October 2019

Additional reports
International outreach kick-start project report
Consultancy: The Australian Trade and Investment Commission (Austrade)
Published: November 2019
Hydrogen as a Transport Fuel:
Location options for a freight-based limited initial deployment of hydrogen refuelling stations
Consultancy: Bureau of Infrastructure, Transport and Regional Economics (BITRE)
Published: October 2019
Prospective hydrogen production regions of Australia
Consultancy: Geoscience Australia
Published: 24 September 2019
Available at: https://ecat.ga.gov.au/geonetwork/srv/eng/catalog.search#/metadata/130930
Hydrogen Research, Development and Demonstration: Priorities & Opportunities for Australia
Consultancy: CSIRO
Expected publication date is December 2019

APPENDIX C | SUPPORTING REPORTS

91

APPENDIX D: CONSULTATIONThe COAG Energy Council Working Group has prioritised consultation with industry and community to develop theStrategy. During 2019 the Working Group undertook a number of consultations and workshops, and participated inhydrogen-related events to inform development of the Strategy. A summary is set out below:

1. Discussion paper March 2019https://consult.industry.gov.au/national-hydrogen-strategy-taskforce/national-hydrogen-strategy-request-for-input/
The discussion paper was designed to encourage conversations about Australia’s emerging hydrogen industry andseek public input to help inform the Strategy. The paper outlined hydrogen’s potential as a clean fuel and theapproach to developing the Strategy.
This consultation received a total of 118 submissions, 29 of which were confidential.

Organisations and individuals who submitted public responses
3R Consultants
ActewAGLADME Fuels
AGL Energy Limited
Ammonia Energy Association
ATCO
AureconAusIndustry
AusNet Services
Australia Institute
Australian Academy of Science
Australian Academy of Technology and Engineering
Australian Conservation Foundation
Australian Energy Council
Australian Gas Infrastructure Group
Australian Pipeline Limited
Australian Pipelines and Gas Association (APGA)
Australian Strategic Policy InstituteBeyond Zero Emissions, Queensland Conservation
Council, Greenpeace, Community Power, Renew (joint
submission)
Construction Forestry Maritime Mining and Energy Union(CFMMEU) Mining & Energy Division - Victoria
Chamber of Commerce and Industry of Western
Australia
Chiyoda Corporation
City of Ballarat
Clean Energy Council
Climate Council of Australia
CO2 Cooperative Research Centre (CRC)
COAL21
Simon Coburn
Countrywide Renewable Energy Pty Ltd
CSIRO
DavanzSusan Dwyer
Energy Change Institute, Australian National University
Energy Networks Australia
Energy Transition Hub

92

AUSTRALIA'S NATIONAL HYDROGEN STRATEGY

Engie Australia and New ZealandEngineers Australia
Environmental Sciences Australia Pty Ltd
Federal Chamber of Automotive Industries
Friends of the Earth Australia
Gas Energy Australia
Rob Gaulton
GHD (two submissions)
Gladstone Regional Council
Global CCS Institute
Grattan Institute
H Energy Electrical
Hydricity Systems
Hydro Tasmania
Hydrogen Energy Supply Chain (HESC) Project Partners
Hydrogen Mobility Australia (now Australian Hydrogen
Council)
Institute for Integrated Economic Research Australia
Invest Victoria
ITM Power
JemenaKPMG
Meridian Energy Australia
Mondo
Motor Trades Association Australia and Motor Trades
Association New South Wales
National Measurement InstituteNorthern Tasmania Development Corporation
Northern Territory Government
NTSF Developments Ltd
Origin Energy
Parramatta Climate Action Network (ParraCAN)
PwC
Renewable Hydrogen Pty Ltd (two submissions)
Roads Australia
Shell Australia
Siemens
Southern Green Gas
Standards Australia

Star Scientific
Rupert Steiner
Thinkstep
TransGrid
University of Adelaide
University of Melbourne (two submissions)
University of Queensland (two submissions)

University of Sydney
Voices of the Valley
Dr Derek Walter
Roger West
Woodside Energy
WorleyParsons Group
Zen Clean Energy Solutionsns

2. Issues papers July 2019https://consult.industry.gov.au/national-hydrogen-strategy-taskforce/national-hydrogen-strategy-issues-papers/
Building on previous engagement, nine thematic issues papers were released seeking feedback on the potential roleof policies and actions in realising hydrogen opportunities.
This consultation received a total of 77 submissions, 23 of which were confidential.

Organisations who submitted public responses
AGL Energy
ALCOA Australia
APA Group
ARUP
ATCO
AusNet Services
Australian Academy of Technology and Engineering
Australian Association for Hydrogen Energy
Australian Energy Council
Australian Gas Infrastructure Group (AGIG)
Australian Pipelines and Gas Association (APGA)
Australian Renewable Energy Agency (ARENA)
Australian Trucking Association
Bennett Clayton Pty Ltd
BOC, Coregas and Viva Energy (joint submission)BP
Clean Energy Council
CO2 Cooperative Research Centre (CRC)
COAL21CSIRO
Curtin University
Doctors for the Environment Australia
Energy Change Institute, Australian National University
Energy Estate
Energy Networks Australia
Engie
Environmental Clean Technologies Limited
Ethical Developments Pty Ltd
Gas Appliance Manufacturers Association of Australia(GAMAA)GHD
Global CCS Institute
Grattan InstituteHazer Group
Hydricity Systems
Hydro Tasmania
Hydrogen Energy Supply Chain (HESC) Project Partners
Hydrogen Mobility Australia (now Australian Hydrogen
Council)

Institute for Integrated Economic Research Australia
Institute for Sustainable Futures, University ofTechnology Sydney
Joint Accreditation System of Australia and New Zealand(JAS-ANZ)
Maritime Union of Australia
Meridian Energy Australia
MM Technology
Mondo Power
National Farmers' Federation
Origin Energy
Protos Consulting
Public Interest Advocacy Centre (PIAC)
Redland City Council
Renew
Renewable Hydrogen Pty Ltd
Rheem Australia
Roads Australia
Woodside Energy

APPENDIX D | CONSULTATION

93

Engagement
In addition to the targeted workshops and roundtable events, the Chief Scientist, Taskforce Leader, and Working
Group members presented and participated in many events across Australia and overseas. Attendance at these events
was often combined with face-to-face meetings and stakeholder briefings.

Roundtables and workshops
The Working Group held 14 theme-based stakeholder roundtables and workshops across Australia:
Date

ThemesLocation

4-5 April 201910 April 2019
6 May 2019
6 May 2019
6 May 2019
7 May 2019
7 May 2019
9 May 2019
9 May 201929 May 20194 June 201917 June 201917 June 201913 September 2019

Industry and Government Workshop
Industrial Users
Research and Development
Industrial Users
Workforce Skills
Exports
Industrial Users
Gas
Electricity
Industrial Users, Transport, Electricity and FinanceTransport
Gas and Electricity
Export and Industrial Users
Industry and Communities Workshop

Canberra, Australian Capital Territory
Darwin, Northern Territory
Sydney, New South Wales
Sydney, New South Wales
Sydney, New South Wales
Melbourne, Victoria
Melbourne, Victoria
Melbourne, Victoria
Melbourne, Victoria
Brisbane, Queensland
Sydney, New South Wales
Perth, Western Australia
Perth, Western Australia
Canberra, Australian Capital Territory

International engagements
Air Liquide, France
Alstom, France
American Association for the Advancement of Science
Argonne National Laboratory, United States (US)Ballard Power Systems, Greenlight Innovation, Vancouver,
CanadaBritish Columbia’s Innovation Commissioner, Canada
California Air Resources Board
California Energy Commission
California Energy Market Policy and Regulation
California Governor’s Office
California Secretary for Environmental Protection
Canadian National Research Council
Center for Strategic and International Studies, US
CertifHy, European Union (EU)Council on Competitiveness, US
Department for Business, Energy and Industrial Strategy,
United Kingdom (UK)
Department of Energy, US
Directorate-General for Energy (DG-ENER), European
Commission
Directorate-General for Internal Market, Industry,
Entrepreneurship and SMEs (DG-Grow), European
Commission
Directorate-General for Research and Innovation (DGENER), European Commission
Engie, France
EPA, US
Federal Chancellery - Industry, Innovation, Energy andTransport Section, Berlin, Germany
Federal Ministry for Economic Affairs and Energy (BMWI),
Germany
94

AUSTRALIA'S NATIONAL HYDROGEN STRATEGY

Federal Railroad Administration, Department ofTransportation, US
Federal Transit Administration, Department ofTransportation, US
Fraunhofer Institute, EU
French Alternative Energies and Atomic Energy Commission(CEA)
Fuel Cell and Hydrogen Energy Association, US
Fuel Cells and Hydrogen Joint Undertaking (FCH JU), EU
Fuel Cell Technologies Office (FCTO), Department ofEnergy, US
Global Regulations and Public Affairs, France
Hydrogen Europe
HyStock Power Plant, The Netherlands
International Association for Hydrogen Safety (HySafe),
BelgiumInternational Energy Agency (IEA)
International Partnership for Hydrogen and Fuel Cells in the
Economy (IPHE)
National Aeronautics and Space Administration (NASA), US
National Energy Technology Laboratory, US
National Renewable Energy Laboratory, US
Natural Resources Canada (NRCan)
Northern Gas Networks, UK
Northern Innovation Board, The Netherlands
Nuon Magnum Power Plant, The Netherlands
Plug Power, US
Sandia National Laboratory, US
Sempra Utilities, California, US
White House Office of Science and Technology Policy, US
White House, USAPPENDIX E: TERMS OF REFERENCEIn December 2018, Australia’s Chief Scientist, Dr Alan Finkel, submitted a proposal for a national hydrogen strategy to
COAG Energy Council.1 The proposal suggested supporting the development of a clean, innovative and competitivehydrogen industry that benefits all Australians and is a major global player by 2030.
On 19 December 2018, COAG Energy Council agreed to establish a dedicated Working Group, chaired by the Chief
Scientist, to lead activities that achieve this vision.

Key priorities for the Working Group included:• the development of a national hydrogen strategy for 2020-2030, and• a coordinated approach to projects and programs that support industry development.

The following six work streams were identified for the Working Group:• hydrogen exports• hydrogen for transport• hydrogen in the gas network• hydrogen for industrial users• hydrogen to support electricity systems• cross-cutting issues.

Ministers asked that the Strategy adhere to the following principles:
1. be ambitious
2. prioritise safety and benefits to customers
3. have clear goals and objectives
4. use partnerships
5. be technology neutral
6. consider the distribution of costs and benefits for Australians
7. be commercially focused
8. be consistent with sustainable environmental management
The Working Group was asked to work closely with industry on the development of the Strategy, and to take into
account views of experts, end users, and environment and community groups. In considering policies and measures
for the national strategy, the Working Group was asked to consider international trends and best practices, reducing
red tape and encouraging innovation, and also potential co-benefits, like fuel security, regional development, andnon-greenhouse gas air pollution.
On the Chief Scientist’s advice, COAG Energy Council tasked the Working Group with carrying out three projects
during 2019, to set the stage for implementation of the national strategy and begin building Australia’s standing
within international markets as a major player. These projects were done in partnership with industry and thecommunity, and have engaged towns and cities across the country. Reports on each of these projects will be madeavailable on the COAG Energy Council website.

Endnotes
1.

Dr Alan Finkel AO, 2018, Proposal for a national hydrogen strategy
http://www.coagenergycouncil.gov.au/publications/establishment-hydrogen-working-group-coag-energy-council

APPENDIX E | TERMS OF REFERENCE

95

APPENDIX F: COAG HYDROGEN WORKING GROUP
National Hydrogen Strategy Steering Committee
Membership

Organisation

Jurisdiction

Alan Finkel (Chair)
Jo Evans
Mike Lawson
Andrew Lewis
James Hay
Anthea Harris
John Lewis
Stephanie Jolly
Niegel Grazia
Paul Heithersay
Sue Morrison
Sean Terry
Geoffrey Rutledge
Shaun Drabsch

Office of the Chief Scientist
Department of Environment and Energy
Department of Industry, Innovation and Science
Department of Planning, Industry and Environment
Department of Planning, Industry and Environment
Department of Environment, Land, Water and Planning
Department of State Development, Manufacturing, Infrastructure and Planning
Department of Natural Resources, Mines and Energy
Department of Primary Industries and Regional Development
Department for Energy and Mining
Department of State Growth
Department of State Growth
Environment, Planning and Sustainable Development Directorate
Department of Trade, Business and Innovation

CommonwealthCommonwealthCommonwealth
New South Wales
New South Wales
Victoria
Queensland
Queensland
Western Australia
South Australia
Tasmania
Tasmania
Australian Capital Territory
Northern Territory

National Hydrogen Strategy Taskforce
Commonwealth Government
Alison Reeve (Taskforce Leader)
Jason Russo (co-leader)Serina Bird
Kate Boston
Cameron Byers
Tom Calthorpe
Sarah Chapman
Hollie Dawes
Adele Henry
Nicole Henry
James Hetherington
Jessica Lane
Suchi Misra
Kim van Netten

Department of the Environment and Energy
Department of Industry, Innovation and Science
Department of Foreign Affairs and Trade
Office of the Chief Scientist
Department of the Environment and Energy
Department of the Environment and Energy
Department of Industry, Innovation and Science
Department of Industry, Innovation and Science
Department of Industry, Innovation and Science
Department of Industry, Innovation and Science
Department of the Environment and Energy
Department of the Environment and Energy
Department of the Environment and Energy
Department of Industry, Innovation and Science

With contributions and support from:
William Blomfield, Sarah Brown, Tom Campey, Amanda Caldwell, Shaneen Coulson, Nicholas Covy, Lesley Dowling,
Karen Elliott, Jodie Fairall, Phil Fitzgerald, Sophie Francis, Doug Gorrel, Paul Gunning, Tegan Hedington,
Leigh Kennedy, Ashley Kerrison, Young Lee, Haakon Marold, Andrew Morris, Ruth Oettle, Jason Potkins,
Mily Quinn, Matthew Stuchbery, Ayumi Sakamoto, Helen Thai, Matthew Wagner, Natasha Wallis, Emma Wisdom,and Marianne Zakman.

New South Wales Government
David Moore (Lead)
Colette Grigg
Evan Walker

Department of Planning, Industry and Environment
Department of Planning, Industry and Environment
Transport for New South Wales

With contributions and support from:
Lindsay Cohen, Liz Devlin, Katharine Hole, Anissa Levy, Alexandra Meldrum, Michael Molitor, and Michael Norris, withadditional support from representatives from a number of NSW State Government agencies.

96

AUSTRALIA'S NATIONAL HYDROGEN STRATEGYVictorian Government
Sharn Enzinger (Lead)
Barbara Blake
Gabrielle Henry
Felicity Sands

Department of Environment, Land, Water and Planning
Department of Environment, Land, Water and Planning
Department of Environment, Land, Water and Planning
Department of Environment, Land, Water and PlanningWith contributions and support from:
Katerina Alexsoska, Jane Burton, Vanya Kumar, David Oglesby, and Mayuran Sivapragasam.

Queensland Government
Carlye Sycz (Lead)
Joel Lindsay
Karen Knight

Department of Natural Resources, Mines and Energy
Department of Natural Resources, Mines and Energy
Department of Natural Resources, Mines and Energy

With contributions and support from:
Ian Chapman, David Shankey, Kathie Standen, the Department of State Development, Manufacturing, Infrastructure
and Planning and other representatives from various Queensland Government agencies.

West Australian Government
Amy Tait (Lead)
Fabrice Gregoire
Rosh Ireland
Joanne Keeling
Eamonn McCabe
Joe Wyder

Department of Primary Industries and Regional Development
Department of Jobs, Tourism, Science and Innovation
Energy Policy WA
Department of Primary Industries and Regional Development
Department of Primary Industries and Regional Development
Department of Primary Industries and Regional Development

With contributions and support from:Michelle Carter and other representatives from various WA State Government agencies.

South Australian Government
Richard Day (Lead)
Ben Macey
Edit Mucsi
Owen Sharpe
Nick Smith
Kara Turner
Debbie Wielgosz

Department for Energy and Mining
Department for Energy and Mining
Department for Energy and Mining
Department for Energy and Mining
Department for Energy and Mining
Department for Energy and Mining
Department for Energy and Mining

With contributions and support from:
Wayne Barbour, Andre Gascoigne, Rebecca Knights, Vick Koster, Mary Lewitzka, Alan Richards and Jemma Temby

Tasmanian Government
Marcus McKay (Lead)
Thomas Butler

Department of State Growth
Department of State GrowthWith contributions and support from:David Middleton, Andrew Rayner, Gary Swain.

APPENDIX F | COAG HYDROGEN WORKING GROUP

97

Northern Territory Government
Louis Gomatos (Lead)
Gibson Porkime
Howard Smith
Jason Howe

Department of Primary Industry and Resources
Department of Primary Industry and Resources
Department of Trade, Business and Innovation
Department of Trade, Business and Innovation

With contributions and support from:
Rod Applegate, Samantha Byrne, Bruce Michaels, Jason Schoolmeester.

Australian Capital Territory Government
Tracy Cui (Lead)James Priestley

Environment, Planning and Sustainable Development Directorate
Environment, Planning and Sustainable Development Directorate

With contributions and support from:
Kate Holland and Hugo Temby.

Stakeholder Advisory PanelAs a part of the development of the Strategy, a Stakeholder Advisory Panel was established to provide support to theSteering Committee. The Panel was chaired by the Chief Scientist and included representation and expertise from thefollowing fields:• safety and communities• finance, industry development and export• gas transmission and distribution• hydrogen production• electricity industry• research, development and innovation• transport sector• standards and regulations• energy users• energy security• environment, water and emissions
The Stakeholder Advisory Panel met three times during the development of the Strategy.
MembershipPeta Ashworth
John Blackburn
Richard Bolt
Tom Campey
Andrew Catchpole
Billy Chan
Matt Clemow
Andrew Dillon
Gustavo Gomberg
Shaun Gregory
Martin Hablutzel
Patrick HartleyDavid Havyatt
Duncan MacKinnon
Karlene Maywald
Rebecca MillsJohn Paul Olivier
Laura Reed
Andrew Richards
Fiona Simon
Anna Skarbek
Kane Thornton
Ben Wilson

98

Organisation
University of Queensland
Defence and National Security Systems Consultant
Swinburne University of Technology
Australian Renewable Energy Agency
Hydro Tasmania
BOC Ltd
Australian Energy Market Operator
Energy Networks Australia
N/A
Woodside
Siemens
CSIRO
Energy Consumers Australia
Australian Energy Council
Maywald Consultants Pty Ltd
Territory Generation
Fortescue Metals Group
Epic Energy
Energy Users Association of Australia
Australian Hydrogen Council
ClimateWorks
Clean Energy Council
Australian Gas Infrastructure Group

AUSTRALIA'S NATIONAL HYDROGEN STRATEGYAPPENDIX G: ACKNOWLEDGEMENTS
The COAG Hydrogen Working Group would like to thank the following people and organisations who assisted in thedevelopment of the Strategy.

Organisations
ARUP
Australian Renewable Energy Agency (ARENA)
AureconAustrade
Australian Consulate and Trade Commission, Vancouver BC
Australian Consulate-General, Los Angeles CA
Australian Embassy, Berlin, Germany
Australian Embassy, Paris, France
Australian Embassy, Seoul, Republic of Korea
Australian Embassy, The Hague, The Netherlands
Australian Embassy, Tokyo, Japan
Australian Embassy, Washington DC
Australian High Commission, London, United Kingdom

Australian Hydrogen Council (formerly Hydrogen Mobility
Australia)
Clayton Utz
Clean Energy Finance Corporation (CEFC)
Commonwealth Scientific and Industrial Research
Organisation (CSIRO)
CO2 Cooperative Research Centre (CRC)
Deloitte
Future Fuels Cooperative Research Centre (CRC)
Geoscience Australia
Office of the Chief Scientist
Standards Australia
ThinkPlace

Individuals
Peta Ashworth, University of QLD
Jose Aza Flores, Origin Energy
Ken Baldwin, Australian National University
Paul Barrand, AGL
Annika Barton, Austrade
Kobad Bhavnagri, Bloomberg New Energy FinanceLuke Blackbourn, Yara
Sean Blythe, ENGV
Richard Bolt, Swinburne University of Technology
Tim Bradley, Department of Industry, Innovation andScience
Sam Button, Aurecon
Caitlin Caruana, Department of Foreign Affairs and Trade
Drew Clarke, Australian Energy Market Operator
Alex Cooke, Department of Industry, Innovation andScience
Mike Davis, Jemena
Anthony Dobb, ARENA
Alex Dronoff, BOC
Tim Duignan, Territory Generation
Robert Dunlop, Macquarie Capital
Ben Evans, ThinkPlace
Nicole Forrester, CSIRO
Anna Freeman, Clean Energy Council
Michael Gantois, FMGL
Timor Gul, International Energy Agency
Patrick Hartley, CSIRODavid Havyatt, Energy Consumers Australia
Rob Heferen, Department of the Environment and Energy
Trevor Holloway, Department of Foreign Affairs and Trade
Will Howard, Department of the Environment and Energy
Claire Johnson, Hydrolytics
Ashley Kerrison, Academic

Amit Khaira, Austrade
Justine Lacey, CSIRO
Sandra Lau, Viva Energy
John Loughhead, Department for Business, Energy andIndustrial Strategy, United Kingdom
Matthew Macleod, Toyota
Brooke Maki, GHD
Samuel Maresh, GE Australia
Scott Nargar, HyundaiDavid Norman, Future Fuels CRC
Shannon O'Rourke, Woodside
Briony O'Shea, GPA Engineering
Jacqueline Pham, Department of the Environment andEnergyMorgan Quinn, ATCO
Kristin Ramanm, AGIG
Daniel Roberts, CSIROJames Rudge, Vestas
Greg Simmons, Lochard Energy
Rosemary Sinclair, Energy Consumers Australia
Vivek Srinivasan, CSIRO
Nina Terrey, ThinkPlace
Nicole Thomas, Department of the Environment andEnergyRebecca Thompson, Department of the Environment andEnergyRobert Trezona, IP GroupNoe Van Hulst, Ministry of Economic Affairs and Climate
Policy, The Netherlands
Kate Vidgen, Macquarie Capital
Tim Wallace, Independent Editorial Consultant
Tony Wood, Grattan Institute
Masako Yoda, Department of Foreign Affairs and Trade

APPENDIX G | ACKNOWLEDGEMENTS

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AUSTRALIA'S NATIONAL HYDROGEN STRATEGY