Hydrogen, once seen as a niche energy source, is now central to the global shift towards lower emissions energy - and Australia is taking a leading role in this transition.
With its potential to revolutionise industries and entire economic sectors, while at the same time reducing carbon emissions, hydrogen is emerging as a crucial component in the quest for a more sustainable future.
Australians can use it to blend with (or replace) natural gas across various industries; for fuel cells to generate electricity to power cars, trucks, buses and trains; to store energy and generate electricity for mining sites and remote communities and as an industrial chemical feedstock for products such as ammonia, fertiliser and green steel.
Ramesh Singaram, president and CEO, Asia, gas power, GE Vernova.
Specifically for the power generation sector, gas turbine technology offers a unique solution to address the intermittency challenges that come with renewable energy, while hydrogen blending offers a path to reduce the carbon emissions of or even fully decarbonise gas turbine power plants.
By blending natural gas with hydrogen, power plants have the potential to significantly reduce their carbon footprint. When burned, hydrogen produces no carbon dioxide, positioning it as a key player in the global effort to mitigate climate change.
Given its vast natural resources, Australia is well-positioned to leverage hydrogen and with a $127 billion pipeline of announced hydrogen investments the nation is steadily advancing towards becoming a global hydrogen leader by 2030.
Tallawarra B Power Station in NSW is Australia’s first dual-fuel capable natural gas and hydrogen power plant. Opened earlier this year, Tallawarra B is planned to be operating on a blend of 5 per cent (by volume) of hydrogen and natural gas by 2025.
The Australian government has also invested more than $500 million to support the development of hydrogen hubs in regional Australia. This investment along with the $4 billion Hydrogen Headstart program, a production tax credit scheme, are crucial funding mechanisms to help stimulate timely investment in the hydrogen industry.
It’s important that the government’s ongoing review of the National Hydrogen Strategy helps ensure Australia remains at the forefront of the global hydrogen industry, both as an exporter and for domestic decarbonisation efforts.