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Tony Wood

Hydrogen is too far off to replace gas power

Electricity already does the same job as natural gas in millions of homes and small businesses and is steadily becoming net zero emissions.

Getting off gas will save money for most Australian households and is necessary to meet our emissions-reduction targets. It requires governments and regulators to tackle some difficult policy and financial challenges. So far, so bad.

Natural gas accounts for 22 per cent of Australia’s greenhouse emissions. The big emitters are LNG production, manufacturing, and power generation. Current policies to reduce these emissions include the Safeguard Mechanism and renewable energy targets.

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Tony Wood is head of the energy program at the Grattan Institute.

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    Original URL: https://www.afr.com/policy/energy-and-climate/hydrogen-is-too-far-off-to-replace-gas-power-20230607-p5devg