Hydrogen the fuel of the future, says Chief Scientist

A NON-polluting energy touted by Australia’s Chief Scientist as the fuel of the future has the potential to create 2300 jobs for regional areas and generate $1.7 billion in exports, and Queensland is in a prime position to cash in on the boon.

CHIEF Scientist Alan Finkel has urged Australia to adopt hydrogen as a fuel, claiming it would create 2300 jobs for regional areas, generate $1.7 billion in exports, and work hand-in-hand with the renewable energy and gas industries.

Hydrogen is a non-polluting energy that can be created through water or fossil fuels, but it is currently expensive and difficult to transport.

If hydrogen fuel were adopted globally, the report said it could abate up to 6 billion tonnes of carbon dioxide by 2050. At that scale, the hydrogen economy would be worth an estimated $3 trillion or more.

Dr Alan Finkel says Australia is well positioned to take a lead in the emerging hydrogen export market.

Because electricity is needed to create hydrogen, Australia’s renewable sector could be used as a low-cost source.

The report said Japan and South Korea were aiming to replace their fossil fuels with hydrogen, and their emerging import demand presented a significant export opportunity for Australia.

“We have an abundance of low-cost renewable solar and wind energy, and an abundance of low-cost brown coal, alongside carbon capture and storage sites,’’ the report said.

“Australia could feasibly be exporting about 137,000 tonnes of hydrogen a year by 2025, about 500,000 tonnes by 2030, and about 1.4 million tonnes by 2040.’’

But the cost of getting to that level would be high. To supply the potential 2030 export market of 500,000 tonnes would require more than 30,000 gigawatts of electricity – almost the same level as Australia’s renewable energy target by 2020.

Hyundai’s Nexo hydrogen fuel cell prototype vehicle is put through its paces. The CSIRO also recently announced a breakthrough in hydrogen car technology.

“Coupled with our existing expertise in natural-gas infrastructure and shipping, Australia is well positioned to take a lead in the emerging hydrogen export market,’’ the report said.

The CSIRO recently announced a breakthrough in hydrogen car technology, and the State Government is also supportive.

It said Queensland was suited to the new fuel because it has the fossil fuels, an existing gas pipeline network that could also carry hydrogen, and a burgeoning renewable energy industry.

“Industry is investing but is held back by the chicken-and-egg problem. Elements such as electricity generation, carbon sequestration, pipelines, electrolysers, refuelling stations and regulations depend on progress in the others,’’ Dr Finkel said.

“The federal, state and territory governments can provide the leadership to help these interdependent players make collective progress.

“Hydrogen can heat our buildings, power our vehicles, and supply our industrial

processes. These applications represent opportunities to expand manufacturing and generate spillover innovation and jobs, while lowering our CO2 emissions.

“We conclude that hydrogen has an important place in a carbon-constrained global economy and that Australia can profit by accelerating its uptake.

“The hydrogen market is ours to make.’’