Priorities and opportunities for Australia
December 2019
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Srinivasan, V., Temminghoff, M., Charnock, S., Hartley, P. (2019). Hydrogen Research, Development and Demonstration: Priorities and Opportunities for Australia, CSIRO.
© Commonwealth Scientific and Industrial Research Organisation 2019. To the extent permitted by law, all rights are reserved, and no part of this publication covered by copyright may be reproduced or copied in any form or by any means except with the written permission of CSIRO.
CSIRO advises that the information contained in this publication comprises general statements based on consultations and desktop research. The reader is advised and needs to be aware that such information may be incomplete or unable to be used in any specific situation. No reliance or actions must therefore be made on that information without seeking prior expert professional, scientific and technical advice. To the extent permitted by law, CSIRO, the Steering Committee and Sponsors and Supporters (including its employees and consultants) excludes all liability to any person for any consequences, including but not limited to all losses, damages, costs, expenses and any other compensation, arising directly or indirectly from using this publication (in part or in whole) and any information or material contained in it.
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CSIRO acknowledges the Traditional Owners of the lands that we live and work on across Australia and pay their respect to Elders past, present and emerging. CSIRO recognises that Aboriginal and Torres Strait Islander peoples have made and will continue to make extraordinary contributions to all aspects of Australian life including culture, economy and science.
The project team would like to thank the project Sponsors and Supporters as well as the Steering Committee for providing support, guidance and oversight throughout the report’s development. This includes Dr Alan Finkel AO and the National Hydrogen Strategy Taskforce for their ongoing support and guidance.
We are also grateful for the time and input of the stakeholders from industry, government and academia, and the CSIRO who were consulted throughout this project. In particular, the project team would like to thank and acknowledge Nick Burke from CSIRO Energy; Lisa Jarrett from CSIRO Futures; Jenny Hayward from CSIRO’s Energy Economics team; Tadro Abbott and Adam Finch from CSIRO’s Science Impact & Policy team; Greg Maloney and Matthew Roper from CSIRO’s Intellectual Property team; and Rebecca Hinton, Kirsten Lawarik and Natalie Clark from CSIRO’s Innovation Catalyst Global team and CSIRO’s Web Solutions Team.
Name |
Institution |
Dr Patrick Hartley |
CSIRO |
Dr Chris Munnings |
CSIRO |
Alison Reeve |
National Hydrogen Strategy Taskforce |
Prof Paul Webley |
University of Melbourne |
Prof Doug MacFarlane |
Monash University |
Prof John Andrews |
RMIT University |
Prof Kenneth Baldwin |
Australian National University |
Dr Jason Scott |
University of New South Wales |
Dr Simon Smart |
University of Queensland |
Prof Evan Gray |
Griffith University |
Prof Gus Nathan |
University of Adelaide |
Dongke Zhang |
University of Western Australia |
Alison Wiltshire |
Australian Renewable Energy Agency |
Australia’s economic prosperity and energy security will depend on us solving national challenges to follow the global market trend towards zero emissions energy. Australia is blessed with vast energy resources, many of them renewable, but some of our biggest trading partners are not so fortunate and are grappling with how to transition from a reliance on imports to lower-emissions alternatives. This is where science can unlock a seemingly impossible challenge, because hydrogen energy could both fill the gap in our export dollars and help the world navigate this energy market transition.
Australia can become a renewable energy superpower through the production and export of hydrogen, but it isn’t easy to invent a new industry around an existing one. The past 18 months have seen unprecedented support for hydrogen, and with good reason. It has a role to play across transport, power, and industrial sectors, and is experiencing increasing domestic and international demand – especially when made from renewable energy. But hydrogen requires a fundamental paradigm shift – and we know that paradigm shifts are often the undoing of new technology. This is where science, as the great former Australian Prime Minister Billy Hughes said, “can lend a most powerful aid.”
This report builds on the concepts introduced in our National Hydrogen Roadmap to identify five key hydrogen industry breakthroughs where research, development and demonstration (RD&D) can develop the Australian and global hydrogen industry. By focusing on these unfair advantages for Australia, we can bring together industry, government, and research organisations to de-risk technologies and catalyse industrial demonstration of critical elements, linking Australian activities with international projects.
Our goal is to fast-track the deployment of emerging hydrogen technologies, providing a means for industry to undertake the technical work required to help them transition to a new energy future. National leadership is critical to connect key players and capabilities across the value chain, and as Australia’s national science agency, CSIRO is partnering with key stakeholders like the Australian and Victorian governments, Origin, Woodside, BHP, and the Australian Renewable Energy Agency (ARENA) to frame this dialogue and develop a path for hydrogen in Australia through this report, as well as in a range of specific projects with partners like Toyota, Hyundai and Fortescue.
Science has already broken one of our major roadblocks by enabling seamless conversion between gaseous hydrogen and liquid ammonia using our patented hydrogen cracker. This simplifies storage and transport and leverages existing liquid fuel infrastructure. We’ve also invested in other key breakthroughs of the future through our Hydrogen Energy Systems Future Science Platform (FSP), de-risking new hydrogen technologies and supporting development of new energy markets including in chemicals and transportation sectors.
CSIRO has been forming collaborative networks around national missions for over a century and is now rallying partners to do the same for hydrogen. We can focus RD&D and bring together industry, government, and other research organisations in an initiative that will facilitate the development of industrial-scale, export-focused hydrogen value chains for Australia. This work will de-risk technologies and catalyse industrial demonstration of critical elements, and link Australian activities with international projects. It will fast-track the deployment of emerging hydrogen technologies developed by CSIRO and its partners.
We believe that building this new industry will focus all our energy on building a better future rather than arguing about the past – that’s the power of national missions. Together, we can build a robust and innovative domestic and export hydrogen industry to power a brighter energy future for Australia.
Dr Larry Marshall
Chief Executive
CSIRO
Hydrogen research, development and demonstration (RD&D) in Australia is well-positioned to support hydrogen industry development and contribute to decarbonisation efforts domestically and internationally.
Figure 1: Hydrogen industry opportunities
Hydrogen opportunities
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In 2018, CSIRO released the National Hydrogen Roadmap,1 which articulated the opportunity for Australia to support global decarbonisation efforts and build on the nation’s resources and skills to develop an economically sustainable domestic and export hydrogen industry. It explored opportunities for hydrogen to become a new Australian export industry and for hydrogen to be used in the gas networks, for transport, electricity systems support and in industrial processes. As the market develops, there will be many more opportunities for Australia beyond those identified, especially for the nation’s advanced manufacturing and services sector to support these industries now and into the future (Figure 1).
Further to improvements enabled by factors such as increasing scale, the Roadmap identified several ways to improve costs of technologies, including through significant investment in research, development and demonstration (RD&D). This finding aligns with the International Energy Agency’s Future of Hydrogen report,2 which also stresses the importance of continued RD&D to improve performance and reduce costs.
Hydrogen RD&D activities span from fundamental technical and non-technical research all the way through to pilot and demonstration projects and can be delivered by researchers, technologists and engineers across both research organisations and industry. RD&D enables the development of state-of-the-art hydrogen production, storage, distribution and utilisation technologies. Developing Australia’s hydrogen RD&D community is vital to industry development and growth.
This report builds on the Roadmap by identifying opportunities for RD&D to support an Australian hydrogen industry. It was developed in parallel with Australia’s National Hydrogen Strategy and will support implementation of the Strategy.3
Using the widely accepted Technology Readiness Levels (TRL)4 framework, this report considers the full spectrum of relevant RD&D activities from TRL 1 – 9, recognising that the nature and role of RD&D changes as technology progresses along the TRL spectrum (see Figure 2). This report also considers non-technical or cross-cutting RD&D fields as critical to industry and technology development (e.g. community engagement and environmental assessment). In many cases, these fields are vital to project development and often have unique local parameters that require a research response tailored to Australia’s unique circumstances.
Figure 2: The role of RD&D across all stages of technology development
Concept validation Prototyping and incubation of emerging technology ideas and developing knowledge to support industry development |
Development and demonstration De-risking and demonstrating promising technologies opportunities and understanding scale-up requirements |
Commercial deployment Delivering continuous improvement in mature technologies and supporting deployment and trouble shooting |
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Basic principles observed |
Formulation of concept or application |
Proof of concept |
Validation in lab environment |
Validation in relevant environment |
Pilot scale validated in relevant environment |
Full scale demo. in relevant environment |
System complete and qualified and hypothetical commercial proposition |
Actual system operated full range conditions (commercial trial, small scale) |
TRL 1 |
TRL 2 |
TRL 3 |
TRL 4 |
TRL 5 |
TRL 6 |
TRL 7 |
TRL 8 |
TRL 9 |
To help inform industry, research and government stakeholders, the report is structured around four key messages:
These key messages have been developed through a highly collaborative process. Input for this report was sought from all Australian universities, relevant Cooperative Research Centres (CRCs), CSIRO’s domain experts and a cross section of industry (see Appendix). In addition to consultations with industry, government and research, a steering committee was convened throughout the project to test findings, approach and key messages.
A collaborative approach
This report is informed by:
To ensure consistency with the Roadmap and Australia’s National Hydrogen Strategy, when discussing ‘hydrogen’ this report is implicitly referring to ‘clean hydrogen,’ defined as being produced using renewable energy or using fossil fuels paired with carbon capture, utilisation and storage (CCUS) to achieve zero-to-low associated carbon emissions. CCUS for this report encompasses methods and technologies to capture CO2 from fuel combustion, industrial processes or directly from the atmosphere, followed by use of the captured CO2 to create valuable products, biosequestration or permanent storage through geological storage.
Finally, the analysis informing this report, including detailed technology scans, research institution activity and the methodology for publications and patent analysis can be found in the Hydrogen Research, Development and Demonstration: Technical Repository.5 Hydrogen RD&D activity is expected to change rapidly over the coming years, as will capabilities that emerge with new projects and research. As such, this Technical Repository has been developed with a view of it becoming a living and digital repository that is maintained overtime.
RD&D has an important role to play in enabling the continued development of Australia’s hydrogen industry.
Innovation, or the transformation of ideas into solutions, is an important outcome for RD&D. Innovation underpins long run economic progress, as it allows countries to become more competitive, adapt more effectively to change, and improve living standards.6
In addition to industrial and technological breakthroughs, process advancements and improvements achieved in the laboratory and through demonstration projects, RD&D can provide models, tools and knowledge which can support individual projects or unlock new opportunities. RD&D can further support technology deployment through research areas such as social and environmental sciences which allow government and communities to assess risks and opportunities in real world settings. This is particularly important given recent findings that Australians view research institutions as the most trusted group to act in the best interest of the public.7
For the emerging hydrogen industry specifically, RD&D can be used to help ensure that Australia becomwwes a key player in the global hydrogen industry. It can do so by:
Beyond the industry-specific benefits described, hydrogen RD&D could also support the Australian economy by stimulating national and international collaboration and knowledge sharing. This could help support international relationship building, using science (and science networks) to support business-to-business opportunities and as a vehicle for international diplomacy. It could also help to grow technology, manufacturing and service businesses that provide highly competitive solutions to the hydrogen industry and are differentiated using science, technology and innovation.
Australia has a strong foundation of hydrogen RD&D skills and infrastructure that can support market activation and improve the long-term sustainability of the domestic and international hydrogen industry.
Australia’s hydrogen RD&D community is diverse. It includes research institutions as well as local and international industry and technology companies, demonstration projects and hydrogen-specific research facilities across Australia (Figure 3). Together, this community is building local capabilities and demonstrating the use of hydrogen across several applications (Figure 4).
Figure 3: Hydrogen RD&D ecosystem
Hydrogen RD&D ecosystem
Figure 4: Snapshot of Australian demonstration projects and research infrastructure
23 Hydrogen-specific demonstration projects and research facilities around Australia
WA
SA
NSW
ACT
VIC
QLD
Details of demonstration projects and research infrastructure found in the Hydrogen Research, Development and Demonstration: Technical Repository.
Beyond physical facilities, some institutions are taking a multidisciplinary approach to energy research with an increasing focus on hydrogen. Examples include: The Future Fuels CRC,9 The Blue Economy CRC,10 Australian National University’s Energy Change Institute,11 the University of Adelaide’s Centre for Energy Technology,12 University of Technology Sydney’s Hydrogen Energy Program,13 the Melbourne Energy Institute at the University of Melbourne,14 and the University of Western Australia’s Centre for Energy.15 These knowledge centres aim to incorporate expertise from across one or more universities and industry to develop holistic hydrogen applications.
Finally, while not hydrogen-specific, over the years Australia has also invested in a series of national research facilities that are being used to support research in many fields, including hydrogen energy. For example, ANSTO’s Australian Synchrotron16 and the OPAL research reactor facility17 were noted in interviews as national facilities that had been used to support characterisation of various materials related to hydrogen energy, such as catalyst and storage materials.
Despite Australia’s hydrogen RD&D capability, Australia’s performance needs attention
Australia’s performance in hydrogen research has room for improvement. One area of consideration is the translation and commercialisation of research and new knowledge to industry. For example, despite a strength in publications, data suggests a weakness in converting research insights into patents and commercial opportunities. This translation issue may relate to the early stage of the domestic hydrogen industry. It may also be partly reflected in the demonstration project map (see Figure 4) as projects listed are generally not related to the next phase of Australian hydrogen technologies.
This innovation performance challenge is not unique to hydrogen and mirrors challenges in Australia’s national innovation performance. There are several studies that have explored these national innovation challenges. The most notable is the Innovation and Science Australia 2017 report titled Australia 2030: Prosperity through Innovation,18 which proposed actions to improve Australia’s innovation performance.
Australia is a leading country with respect to global publications in the area of hydrogen research. This is demonstrated by strong performance in publications output, citation impact and international publication collaboration. This places the Australian research community in a strong position internationally.
Global hydrogen research output has increased steadily from ~1,700 publications per year in 2001 to ~11,500 publications per year in 2018. Australian output has also increased, and at a slightly higher rate. Australia’s share of hydrogen research grew from 1.5% to 3% over the same period, showing strong growth across the value chain (see Figure 5). Previous studies show that Australia has maintained a strong position in hydrogen research over time, having ranked 7th in hydrogen publications in the 1980s.19
The strength in Australia’s hydrogen research output is further evidenced by citation impact performance. One approach to assessing this is through Normalised Citation Impact (NCI),20 which examines how often the publications are cited by other researchers. Figure 6 provides a snapshot of global NCI rankings, which emphasises Australia’s strong publications performance across the value chain for the period of 2014-2018.
Australia’s publication collaboration frequency over the previous five years shows a high level of international collaboration with prominent hydrogen-active countries, setting up a strong foundation for collaboration moving forward. The top five countries collaborated with were China, USA, England, Germany and Japan. 62% of Australian publications for the period 2014-2018 involved collaboration with researchers from these countries. Further details of publication collaborations are found in Hydrogen Research, Development and Demonstration: Technical Repository.21
Figure 5: Australian hydrogen publication output as % of world
Data was drawn from the Web of Science (WoS) from Clarivate and InCites by Clarivate Analytics. The search strategy and keywords used can be found in Hydrogen Research, Development and Demonstration: Technical Repository
Figure 6: Australia’s publications ranking based on normalised citation impact (NCI)
Production
Storage
Utilisation
Overall
Australia’s NCI rank
Data was drawn from the Web of Science (WoS) from Clarivate and InCites by Clarivate Analytics. The search strategy and keywords used can be found in Hydrogen Research, Development and Demonstration: Technical Repository
Patent family data22 can be used to measure innovation and explore how research knowledge is being translated. It is of course not a perfect indicator, as not all innovations result in patents and not all patents result in practical innovations.23
To generate insight into Australia’s hydrogen IP positioning, a patent landscape search was performed to provide an overview of the technology area’s IP history and to compare Australia to other countries over time. The scan returned over 50,000 patent families filed worldwide across the value chain since 1 January 2010.
Excluding Patent Cooperation Treaty applications or European applications which relate to legal jurisdictions rather than physical countries, China, Japan and the US make up the top 3 countries based on first patent family filing, with Australia ranking 10th (see Figure 7). This makes up only 0.5% of the total, which is far below the contribution made in publication metrics as discussed above (3.0%).
Globally, patent family filing activity for the first patent application in a patent family has increased worldwide over the last 10 years, from 3,650 in 2010 to a peak of 5,610 in 2016 (see Figure 8).
However, the number of those originating in Australia has declined over the same period. Although Australia’s research output has increased over the previous years, the conversion of this research into IP has not followed the same trend.
Figure 7: Top 10 hydrogen-related patent family countries of origin
Country of origin |
Patent number |
% of total |
China |
19,259 |
36.4% |
Japan |
12,374 |
23.4% |
United States |
8,046 |
15.2% |
South Korea |
4,220 |
7.9% |
Germany |
2,646 |
5.0% |
France |
1,343 |
2.5% |
Russia |
922 |
1.7% |
United Kingdom |
617 |
1.1% |
Taiwan |
602 |
1.1% |
Australia |
280 |
0.5% |
Figure 8: Global and Australian patent family filing trend (2010-2016), using the first filing in a patent family24
The search strategy and keywords used can be found in Hydrogen Research, Development and Demonstration: Technical Repository
Global hydrogen industry developments will address many market activation challenges; however, RD&D is required to overcome current barriers and help stimulate demand.
This report focuses on five hydrogen opportunity areas. However, as the market develops, there will be many more opportunities for Australia beyond those identified here, especially for the nation’s advanced manufacturing sector.
Market activation and the realisation of these hydrogen opportunities requires investment from various stakeholder groups (e.g. industry, government and research) so that industry can continue to scale in a coordinated manner.
Global industry development and scale-up will help realise these opportunities. However, many industry challenges require or could be greatly aided by focused RD&D. This chapter identifies market activation challenges and opportunities for the Australian hydrogen RD&D ecosystem. For each opportunity, three short to medium term market activation challenges have been identified (see Figure 9).
Importantly, solving the challenges identified can have a multiplier effect that boosts demand for hydrogen and encourages further hydrogen supply cost reductions through improvements in efficiency and economies of scale. Hydrogen use in industrial processes provides a strong example of this in action given the breadth of industries that already use hydrogen as a feedstock, the number that could use hydrogen and the volume of hydrogen required by these industries to support ongoing operations.
While not exhaustive, these challenges stress the importance of RD&D effort across the value chain (discussed in Part 3). It is important to note that these market activation challenges, and their associated RD&D opportunities, are expected to change over time as the market develops and projects are executed. As such, it is recommended that these market activation challenges are revisited as part of a broader Australian RD&D strategy (discussed in Part 4).
Figure 9: Opportunities and RD&D related challenges
Export |
Producing low cost hydrogen and hydrogen carriers at scale |
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Store and distribute hydrogen economically at scale |
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Inform and understand export value chains and market requirements |
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Gas networks |
Develop network and pipeline solutions |
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Demonstrate integration of blended and 100% hydrogen in gas networks |
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Prepare domestic and commercial appliances for hydrogen gas |
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Transport |
Plan strategic deployment of cost-effective refuelling infrastructure |
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Use hydrogen for transport, especially heavy and long-range transport |
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Build safety and environmental cases and inform community acceptance |
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Electricity systems |
Understand and manage grid integration of hydrogen technologies |
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Integrate hydrogen production and storage solutions in distributed systems |
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Develop hydrogen solutions to allow for inter-seasonal variation |
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Industrial processes |
Switch current industrial hydrogen users to clean hydrogen |
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Develop use cases to adapt current processes to use hydrogen and its derivatives |
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Establish new market opportunities for zero or low emissions hydrogen |
Hydrogen production | Storage and distribution | Hydrogen utilisation | Cross-cutting RD&D
Australia has an extensive history of exporting energy and natural resources to the world, which has created economic benefits and jobs. Global demand for energy in the form of hydrogen is increasing. Long-term import strategies for the element have been set by Asian neighbours like South Korea and Japan and numerous reports have outlined Australia’s great potential to produce and export hydrogen due to its geography and natural resources, highlighting a large opportunity for Australia. Attempts to quantify the opportunity have been undertaken by many organisations:
Beyond the value of hydrogen carriers for storage and distribution, is the potential for direct use of carriers to support broader decarbonisation efforts. An example of this can be seen through the direct use of ammonia, which is being considered as a fuel in the maritime industry. The direct use of carriers is discussed further in Part 3.3.
The National Hydrogen Strategy Issues Papers highlighted several actions required to unlock an export industry that include production at scale, country-to-country agreements, international engagement, securing offtake agreements and overcoming technical barriers.28 Outlined below are those where RD&D can play a role.
CHALLENGE |
PRODUCE LOW COST HYDROGEN AND HYDROGEN CARRIERS AT SCALE |
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Context |
Countries that have declared hydrogen import targets have also outlined the hydrogen price they expect to pay. These prices will require significant reductions in hydrogen costs over the coming decades as well as highly scaled production plants. The cost reductions and the build-up of export scale production facilities will be greatly assisted by RD&D. |
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RD&D opportunities |
Production |
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Cross-cutting RD&D |
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CHALLENGE |
STORE AND DISTRIBUTE HYDROGEN ECONOMICALLY AT SCALE |
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Context |
Hydrogen has a very low volumetric density as an unpressurised gas, making it uneconomical to transport in this way. To improve the economics of transporting hydrogen, different technologies can be used to change the state and pressure in which the hydrogen is stored. |
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RD&D opportunities |
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Storage and distribution |
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Cross-cutting RD&D |
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CHALLENGE |
INFORM AND UNDERSTAND EXPORT VALUE CHAINS AND MARKET REQUIREMENTS |
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Context |
Like all large-scale development, it is important to analyse and manage risks to stakeholders and the environment to earn a social licence to operate. For the emerging hydrogen industry this requires a greater understanding of export value chains and the drivers and goals of key stakeholders in target markets. |
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RD&D opportunities |
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Cross-cutting RD&D |
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Introducing hydrogen into the existing natural gas networks is currently underway with pilots across the country already announced, creating many opportunities for Australia.
From a heating perspective, the blending or use of 100% hydrogen in gas networks presents an opportunity to decarbonise the existing gas network by providing domestic, commercial and industrial customers with a lower carbon gas for heating and energy. Annual emissions for the year to December 2018 show that energy from the direct combustion of fuels accounts for 19.1% of Australia’s emissions, making it the 2nd largest sector as well as the fastest growing.30 This gas can also be utilised by gas peaking plants, to aid in decarbonising electricity generation.
Further, parts of the existing gas distribution infrastructure can be utilised as a pure hydrogen distribution network, providing a potentially more cost-effective alternative to road distribution. Finally, with domestic natural gas prices high (highest in eastern states at $8-10/GJ),31 and reserves locked up in long-term contracts, blended gas could reduce the pressure on natural gas. In fact, the use of 100% hydrogen gas streams could eventually replace the domestic reliance on natural gas altogether.
Figure 10: Hydrogen blending and injection into gas networks
Feedstock
Renewable energy
Production
H2
Natural Gas
Blending/injection
Natural gas distribution line
Blended Gas
The National Hydrogen Strategy Issues Papers highlighted several challenges that need to be overcome to facilitate the introduction of hydrogen into the gas network, including assessing the suitability of existing gas infrastructure and appliances, achieving customer acceptance and ensuring industrial customers get the correct gas combination for their processes.32 Outlined below are those where RD&D can play a role.
CHALLENGE |
DEVELOP NETWORK AND PIPELINE SOLUTIONS |
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Context |
Hydrogen has different characteristics compared to natural gas which means that it interacts with pipeline materials differently. When the gases are mixed or if hydrogen is transmitted as the sole gas, the effects on pipeline infrastructure need to be considered to minimise leakage, ensuring safe transmission and reduced economic impact of losses. |
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RD&D opportunities |
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Storage and distribution |
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Utilisation |
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Cross-cutting RD&D |
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CHALLENGE |
DEMONSTRATE INTEGRATION OF BLENDED AND 100% HYDROGEN IN GAS NETWORKS |
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Context |
The ability to supply hydrogen safely and cost-effectively at scale will be required to support uptake of 100% hydrogen or hydrogen blends. As with conventionally used natural gas, hydrogen is flammable and poses a safety risk due to potential ignition and flame speed and visibility. Safety is the main concern for consumers in the domestic context and without social acceptance, the industry will not develop in an accelerated manner. Furthermore, as implementation of higher hydrogen blends across larger areas increases, hydrogen must be produced at a large enough volume to meet demand. In order to gain uptake by industry and acceptance from the community, the ability to supply hydrogen safely and cost-effectively at scale will be required. |
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RD&D opportunities |
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Production |
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Utilisation |
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Cross-cutting RD&D |
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CHALLENGE |
PREPARE DOMESTIC AND COMMERCIAL APPLIANCES FOR HYDROGEN GAS |
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Context |
Addition of hydrogen to natural gas changes its characteristics. This has downstream effects on appliances given the different burning behaviour. This change was similarly experienced in the change from town gas to natural gas. The effect that new gas compositions or 100% hydrogen will have on domestic and commercial customers needs to be clear. |
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RD&D opportunities |
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Utilisation |
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Cross-cutting RD&D |
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The transport sector is Australia’s third largest source of greenhouse gas emissions (18.9%) and has so far received little focus for emission reduction.34 There is significant potential for hydrogen and its carriers to be adopted as a low to zero-emission transport fuel across Australia. The versatility of hydrogen and its carriers as an energy source, coupled with its high energy density, lends itself to be adopted in numerous mobility types to aid in decarbonising the sector (Figure 11). For example, hydrogen and its carriers can be fed into fuel cells to power electric drive trains or combusted to drive turbines and engines without producing CO2 emissions.
Additionally, it would provide an opportunity to improve liquid fuel security; Australia still does not meet its domestic fuel reserve targets set by the IEA and about 90% of fuels used are derived from oil sourced from overseas.35 Domestically produced hydrogen fuels could help mitigate the risk of fuel disruptions.
Figure 11: Potential hydrogen and hydrogen carrier transport and mobility applications
Land
Water
Air
The National Hydrogen Strategy Issues Papers highlighted several challenges that need to be overcome to facilitate the use of hydrogen as a fuel. This includes vehicle supply and capital costs, vehicle regulation, fuel price and supply as well as refuelling infrastructure.36
CHALLENGE |
PLAN STRATEGIC DEPLOYMENT OF COST-EFFECTIVE REFUELLING INFRASTRUCTURE |
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Context |
While the expected retail costs of hydrogen are currently unknown, initial information suggests that prices of hydrogen will be comparable to that of petroleum currently used in internal combustion engine vehicles.37 However, minimal infrastructure exists for refuelling hydrogen vehicles, presenting a barrier to public uptake. While costs related to refuelling stations are coming down through economies of scale, deployment can be optimised with a strategic approach that leverages refuelling infrastructure for multiple uses. For example, the infrastructure could be used to support vehicles, buses, forklifts, garbage trucks and trains. Such an approach should also consider effective hydrogen production and storage and distribution solutions to ensure that hydrogen is always available across the refuelling station network. |
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RD&D opportunities |
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Production |
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Storage and distribution |
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Cross-cutting RD&D |
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CHALLENGE |
USE HYDROGEN FOR TRANSPORT, ESPECIALLY HEAVY AND LONG-RANGE TRANSPORT |
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Context |
A challenge relate to the rollout of FCEVs is the misalignment between hydrogen supply and demand (often described by many stakeholders as a chicken and egg situation). To address this challenge and support broader uptake, market activation can be aided by investment in multiple types of transport applications. For example, while there are existing hydrogen buses, trains and forklifts, RD&D can be used to explore and develop technologies and infrastructure to support heavy vehicle and long-range transport applications that have requirements beyond current FCEV technology. In heavy vehicles, Australia uses unique long-haul trucks and mining vehicles which carry large loads, travel significant distances and, in the case of mining, need to operate continuously (which necessitates vast on-board storage requirements). Long-range transport applications, such as marine transport, plays an important role in Australia’s export industries and can promote larger scale investments in hydrogen and hydrogen carrier production and refuelling infrastructure. |
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RD&D opportunities |
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Production (Part 3.1) |
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Storage and distribution (Part 3.2) |
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Utilisation (Part 3.3) |
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Cross-cutting RD&D (Part 3.4) |
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CHALLENGE |
BUILD SAFETY AND ENVIRONMENTAL CASES AND INFORM COMMUNITY ACCEPTANCE |
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Context |
While public concern exists regarding the safety risks that hydrogen vehicles and refuelling stations pose, there is general support for the introduction of hydrogen fuel cell buses and long-haul trucks.38 The safety challenges of hydrogen itself will also need to be addressed. The greatest (and highest profile) risk is potential ignition of a hydrogen leakage at a station or vehicle.39 As hydrogen-related incidents have occurred, safe demonstrations and public education are needed. |
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RD&D opportunities |
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Cross-cutting RD&D (Part 3.4) |
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The prospect of the deployment of large-scale distributed hydrogen production has many positive implications for electricity systems, particularly the electricity grid, as more renewables are introduced.
With electrolysis, intermittent excess renewable energy can be used to produce hydrogen, a renewable fuel with benefits within and beyond electricity systems (see Figure 12). Large-scale electrolysis can balance production and consumption in electricity markets. It can also be used to support short term network stability by providing frequency control ancillary services (FCAS). Importantly, hydrogen can also be ‘exported’ from electricity systems and markets for use as a fuel in industry and transport. As distinct from storage, this permanently removes (and captures value from) renewable energy whose generation might have otherwise been curtailed.
Furthermore, as regional areas move towards renewable and storage options for energy generation, the development of distributed hydrogen systems such as hydrogen remote area power systems (RAPS) provides an opportunity for self-sufficient long-term energy storage and back up generation in locations where there is a dependence on diesel shipments. These areas would also benefit from air quality improvements associated with not burning diesel and the increased fuel security from not having to rely on regular shipments of diesel, which could be interrupted.
Importantly, hydrogen use in both centralised and distributed electricity systems will depend on market economics, frameworks and incentives.
Figure 12: Variable renewable energy scenarios with electrolyser balancing
a. Energy system during period of high variable renewable energy production, balanced by electrolysis
b. Energy system during period of low variable renewable energy, balanced by low to zero electrolysis. Hydrogen blended fuel turbines provide peaking electricity generation
Image developed with Hydricity Systems
The National Hydrogen Strategy Issues Papers highlighted several challenges that need to be overcome to use hydrogen technologies to support electricity systems, including market and regulatory reforms and asset placement optimisation.42 Outlined below are those where RD&D can play a role.
CHALLENGE |
UNDERSTAND AND MANAGE GRID INTEGRATION OF HYDROGEN TECHNOLOGIES |
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Context |
Hydrogen production methods that require a grid connection have few demonstrations. Increasing this will provide learnings on how to optimise plugging these technologies into the grid to lower risks, enhance benefits and take advantage of opportunities. |
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RD&D opportunities |
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Production (Part 3.1) |
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Storage and distribution (Part 3.2) |
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Utilisation (Part 3.3) |
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Cross-cutting RD&D (Part 3.4) |
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CHALLENGE |
INTEGRATE HYDROGEN PRODUCTION AND STORAGE SOLUTIONS IN DISTRIBUTED SYSTEMS |
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Context |
The use of hydrogen in distributed systems such as remote area power systems (RAPS) or micro-grids could be used to support remote communities and industries. They can be used to reduce reliance on diesel-based generators. For example, diesel-based systems can have a high cost due to the need to import fuel via truck to remote communities and industries and can have an adverse impact on air quality. A hydrogen-based RAPS system could be more cost effective at scale and allow for longer storage periods in harsher operating conditions.43 In the case of some micro-grids, hydrogen can be used to provide backup power when outages or disruptions to the grid occur. There are several companies working on distributed systems. However, further demonstration projects would be required to optimise these systems depending on the energy and load profiles of remote communities and industries. This may include optimisation of hybrid systems which include batteries. The scale of these system will have large ramifications on technology selection, requiring serious consideration. |
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RD&D opportunities |
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Production (Part 3.1) |
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Storage and distribution (Part 3.2) |
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Utilisation (Part 3.3) |
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Cross-cutting RD&D (Part 3.4) |
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CHALLENGE |
DEVELOP HYDROGEN SOLUTIONS TO ALLOW FOR INTER-SEASONAL VARIATION |
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Context |
While electricity grid firming is a valuable opportunity for hydrogen systems, being able to provide both electricity grid stability (i.e. seconds to hourly storage) and grid reliability (i.e. seasonal storage) services, there remain challenges in developing large scale hydrogen storage solutions that can accommodate significant changes in inter-seasonal energy demand. |
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RD&D opportunities |
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Storage and distribution (Part 3.2) |
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Cross-cutting RD&D (Part 3.4) |
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Hydrogen is already used as a common feedstock in several industries including glass manufacturing, food production, petrochemicals (hydro-treating or hydrocracking), biofuels, methanol synthesis and ammonia synthesis. Most of this hydrogen is currently derived from fossil fuels without the use of CCUS. By shifting to zero or low emissions hydrogen, these industries have an opportunity to decarbonise.
The use of hydrogen in industrial processes has also been identified as an opportunity to reduce emissions in harder-to-abate sectors such as metals processing. While hydrogen is already used to treat some metals (such as nickel), there is an opportunity for further decarbonisation in the iron and steel making process. While other pathways exist to reduce energy and emissions, like the replacement or blending of coking coal with charcoal from biomass, new steelmaking processes using clean hydrogen could enable a 98% reduction in emissions compared with the blast furnace-basic oxygen furnace route.46 An example can be seen through the HYBRIT project in Sweden by SSAB, LKAB and Vattenfall who are planning to convert their steelmaking process from blast furnace to using hydrogen for direct reduction of iron (DRI), with the first commercial plant expected to be operational by 2035.47
Finally, hydrogen presents an opportunity for synthetic fuel production as Australia is heavily dependent on the import of crude oil and crude based liquid fuels such as gasoline, diesel and jet fuel.48 Hydrogen can be combined with CO2 to synthetically produce any of these higher order liquid fuels as ‘drop-in’ alternatives, requiring no change in existing engine infrastructure.
Figure 13: Opportunities for hydrogen in industrial processes
The National Hydrogen Strategy Issues Papers highlighted several challenges that need to be overcome to optimise hydrogen for industrial users. These challenges included ensuring adequate and affordable hydrogen supply, appropriate regulations and standards, and availability of skills to support industrial users.49 Outlined below are those where RD&D can play a role.
CHALLENGE |
SWITCH CURRENT INDUSTRIAL USERS OF HYDROGEN TO ZERO OR LOW EMISSIONS HYDROGEN |
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Context |
Many industries, such as ammonia and petrochemicals, rely on hydrogen as part of their industrial process. For zero or low-emissions hydrogen to be incorporated in these industrial processes, organisation will need to consider a broad range of factors. For example, industrial users would require a reliable or constant supply of zero to low emissions hydrogen at the desired scale to ensure continual operations at a price point that does not negatively impact the cost of production. Depending on the volume required and the location of production, hydrogen storage and distribution may also require consideration. Variable renewables and ramping up and down of hydrogen production may require storage options. Hydrogen distribution via pipelines could allow hydrogen to be generated centrally at scale and delivered to multiple industrial (or non-industrial) hydrogen users. Pipelines could also be used to act as a short-term (ranging from days to a week) storage buffer in support of continuous operations. |
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RD&D opportunities |
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Production (Part 3.1) |
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Storage and distribution (Part 3.2) |
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Utilisation (Part 3.3) |
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Cross-cutting RD&D (Part 3.4) |
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CHALLENGE |
DEVELOP USE CASES TO ADAPT CURRENT PROCESSES TO USE HYDROGEN AND ITS DERIVATIVES |
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Context |
There are broad range of industrial processes that are dependent on emissions intensive feedstocks that could consider the use of zero to low emissions hydrogen to support decarbonisation efforts. However, a shift away from an existing feedstock is not a straight forward proposition and will require engineering, analysis, safety assessments, new technologies and strong business cases to support change. Furthermore, hydrogen is not the only way to decarbonise industrial process and analysis would be required to consider alternatives. As such, each of these processes would need to be considered on a case by case basis. The use of hydrogen in steel making was raised through interviews and provides a useful example to understand the process and consideration for hydrogen use. Conventional refining of iron ore to iron is conducted in a blast furnace using coking coal as both the primary energy source and reductant. Iron is then transformed into steel through the careful addition of oxygen, carbon and other trace elements. But it is the ironmaking step which has made steelmaking difficult to decarbonise. This is largely due to the dual role coke has in the blast furnace as a reductant as well as physical structure to support the blast furnace bed, giving it strength and porosity (and not being too reactive). Replacing coke with alternative materials that are effective and affordable is a challenge. While RD&D on hydrogen production, storage and distribution is valuable, RD&D related utilisation and in cross-cutting fields has been explored in greater detail due to the complexity of these different industrial process and the change required. |
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RD&D opportunities |
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Utilisation (Part 3.3) |
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Cross-cutting RD&D (Part 3.4) |
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CHALLENGE |
ESTABLISH NEW MARKET OPPORTUNITIES FOR ZERO OR LOW EMISSIONS HYDROGEN |
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Context |
Beyond the use of hydrogen within established and mature markets (discussed in previous challenges) are opportunities to support the establishment of new or emerging markets. These opportunities will be driven by economic and market requirements for hydrogen and its derivatives (and potentially supported by the saleable co-products from hydrogen production processes). While difficult to predict the opportunities (and RD&D needs), one example opportunity could be to progress synthetic fuel production techniques to expand carbon neutral fuel options. This opportunity can significantly reduce Australia’s dependence on imported fuel by localising production. It also provides a significant market for utilisation of CO2. Given that this process produces readily used liquid fuels that are ‘drop-in’, there are no major changes required for technologies and infrastructure related to storage and distribution and utilisation which supports the value proposition. |
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RD&D opportunities |
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Production (Part 3.1) |
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Cross-cutting RD&D (Part 3.4) |
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Part 2 explored opportunities in hydrogen export and the use of hydrogen in gas networks, for transport, supporting electricity systems and in industrial processes. It showed that each opportunity has specific market activation challenges that can be supported by RD&D. This part of the report considers the breadth of RD&D opportunities across the value chain:
Hydrogen production > Storage and distribution > Hydrogen utilisation > Cross-cutting RD&D
Rather than picking winners, this report presents detailed analysis across the value chain in order to allow stakeholders in industry, research institutions and government agencies to make their own informed choices. The report, along with the Technical Repository,52 explores a broad range of technologies and research areas in detail. Importantly, it has been designed to act as a resource that can evolve over time as technologies advance or as government and industry funding and priorities change.
Several themes emerged through interviews and the analysis of industry challenges and underpinning RD&D opportunities across the value chain. This includes the need for RD&D diversity, a focus on cost and efficiency improvements, as well as breakthrough technology areas and the need to develop integrated decision-making support capability. Together these themes are important considerations for enhancing Australia’s hydrogen RD&D ecosystem and shaping Australia’s emerging industry.
The complexity and diversity of hydrogen industry challenges and possible pathways requires a diverse range of RD&D capability to match. This includes deep technical expertise in hydrogen related technologies, complemented by expertise in cross-cutting RD&D fields. This diverse RD&D capability should be developed and strategically leveraged to collaboratively respond to global and domestic industry opportunities. Together, diverse teams will help foster near term and breakthrough technologies and create new knowledge that helps the global industry develop.
Analysis of technologies from across the value chain is provided to allow stakeholders in industry, research and government to make informed choices. Over time, Australia’s RD&D capability can be further refined or focused as the industry matures and investment in specific opportunities increases.
Understanding current active hydrogen projects can be used to indicate existing capability that could be leveraged and readily transferred into new RD&D areas (see Figure 14). However, it should also be emphasised that this summary acts as a snapshot only. As such, it does not capture existing capability that could be readily transferred from one area of research into another, nor knowledge and experience that may have been developed in a given institution over time. Furthermore, hydrogen RD&D is expected to change rapidly over the coming years, as will capabilities that emerge with new projects and researchers. Ideally, this summary should be maintained regularly to hold an accurate picture of the Australian hydrogen RD&D landscape.
Figure 14: Snapshot of current hydrogen RD&D project activity
Hydrogen production
Cross-cutting RD&D
Storage and distribution
Hydrogen utilisation
Hydrogen application-specific technologies including
technologies for:
For further details refer to Hydrogen Research, Development and Demonstration: Technical Repository
Achieving low-cost production of hydrogen at scale will be a critical factor for determining the growth and success for the hydrogen industry. This analysis identified a broad range of cost and efficiency opportunities across the value chain which are achievable through RD&D (see Figure 15). From a cost perspective, there are specific opportunities to reduce capital and operating costs through new materials, system designs and improvements in integration between technologies. While inherently linked to cost, efficiency is particularly important for making the most out of the resources available.
Figure 15: Example cost and efficiency opportunities for RD&D
Hydrogen production
Storage and distribution
Hydrogen utilisation
Identifying and developing breakthrough technologies can offer step-change benefits across the hydrogen value chain. This could include eliminating the need to process a given feedstock for hydrogen production, for example by using low quality or waste water inputs without pretreatment. Breakthrough technologies could also allow the use of alternative feedstocks such as biomass or waste streams; or value chain transformation for example through direct use of carriers (see Figure 16). While difficult to predict the timeline of such developments, RD&D on new hydrogen generation or storage technologies could lead to breakthroughs that change cost structures or reduce or eliminate process steps.
A key opportunity is in the development of new hydrogen utilisation technologies, particularly in large scale industrial settings. Such technologies will serve to boost demand and help encourage cost reductions in hydrogen production, storage and distribution as well as in ancillary technologies and services that are required to support the industry.
Figure 16: Example breakthrough opportunity areas
Energy and feedstock > Hydrogen production > Conversion > Storage and distribution > Conversion to or preparation of hydrogen > Utilisation
New inputs and processes
Direct carrier synthesis
New carriers and processes
Direct carrier utilisation
New use cases and technologies
The development of Australia’s hydrogen industry will be strengthened by information and decision-making support across five cross-cutting RD&D fields (see Figure 17), discussed further in Part 3.4. While each of these fields are often viewed independently, they are interrelated and collaboration across these fields will be important to achieving greater industry and economy-wide outcomes. Integrated approaches to decision making has the potential to lead to more efficient industry development, drive new opportunities and help to understand dividends for the entire economy.
Figure 17: Cross-cutting RD&D fields
Environmental research in land use, water use, atmospheric impacts and materials and waste management to inform industry strategy and specific project decisions.
Ancillary technology and services to create specialised hydrogen components for operations, streamline and integrate hydrogen technologies and processes, and maximise benefits from data across the value chain.
Modelling to inform decision making, reduce experiment time, provide insight to optimise systems and narrow technology selection.
Policy and regulation research to support policy, regulators and lawmakers during scale up and the long-term development of the hydrogen industry.
Social licence, safety and standards research to understand, engage and inform communities on the value, opportunities and risks associated with hydrogen; and ensure safe production, distribution and use of hydrogen.
Hydrogen production RD&D should focus on lowering costs, improving production efficiency and enhancing safety and sustainability to support a range of end-uses.
There is a wide range of hydrogen production technologies at various levels of maturity, each requiring different feedstocks, energy inputs and operating conditions. To aid understanding, this section has been structured by production process (see Figure 18):
Due to the different processes involved, technologies have different RD&D priorities that need to be pursued in order to reduce costs, boost efficiencies and facilitate system integration. Suitability of the production process depends on the requirements of end use and available resources.
To inform decision making, each of these technologies is supported by a technology repository which provides further detail into each technology (see Technical Repository53).
Figure 18: Hydrogen production processes
Electrolysis
e.g. PEM electrolysis
Fossil fuel conversion
e.g. Natural gas pyrolysis
Biomass and waste conversion
e.g. Biomass gasification
Direct chemical carrier production
e.g. Electrochemical ammonia synthesis
Thermal water splitting
e.g. Solar-thermochemical water splitting
Biological hydrogen production
e.g. Dark fermentation
Photochemical and photocatalytic processes
e.g. Photocatalytic water splitting
The following high-level RD&D priorities apply across all hydrogen production processes:
In electrolytic methods, an electric current is applied to split water into hydrogen and oxygen gas streams. The process typically occurs in a device known as an electrolyser (comprised of a ‘stack’), in which hydrogen gas is produced at the positively charged cathode and oxygen gas is produced at the negatively charged anode. Given that electricity is the primary energy source, to be considered low to zero emission they must be connected to renewable energy sources, sourced through a purchase power agreement, or connected to a hybrid power supply with integrated CCUS.
The high-maturity technologies include alkaline electrolysis (AE) and polymer electrolyte membrane (PEM) electrolysis. While commercial, these technologies could still be improved through RD&D advancements such as improved energy efficiency, production rate, stack life, or reduced capital costs. The low maturity technologies make use of alternative membranes (anion exchange membrane electrolysis, solid oxide electrolysis) or energy sources (carbon and hydrocarbon-assisted water electrolysis, solid oxide electrolysis) to drive hydrogen production. The use of an additional energy input provides the advantage of reducing the required electrical energy input to produce hydrogen, or the ability to make use of a currently underutilised energy source such as waste heat. Figure 19 showcases the technologies within this category, along with their respective TRLs and a key benefit for each.
Figure 19: Electrolysis technologies
RD&D Priority Areas |
Factors |
Cost and efficiency |
Reactor design |
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Balance of plant |
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Cross-cutting RD&D fields |
Environmental |
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Social licence and safety |
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Fossil fuel-based processes convert fossil fuels such as coal, natural gas, and oil into hydrogen and other chemicals. Many fossil fuel-based thermochemical plants are already established at industrial scale, with steam methane reforming being used for the majority of hydrogen production today. In order to achieve zero-to-low net carbon emissions, all fossil fuel-based technologies must be integrated with carbon capture, utilisation and storage (CCUS) mechanisms. The necessity for CCUS with fossil-fuel derived hydrogen results results in additional costs. One of the most important RD&D areas for higher TRL fossil fuel conversion technologies is improved CCUS mechanisms to reduce capture costs and potentially to increase the value of utilised CO2. Any heat sources used in fossil fuel conversion process can also be substituted with concentrated solar thermal energy, presenting an opportunity to further integrate renewable energy and reduced carbon dioxide production for these processes.
Lower TRL technologies in this category could yield other benefits if made viable. For example, natural gas pyrolysis produces a valuable solid carbon product rather than CO2, and chemical looping water splitting allows high purity hydrogen and carbon dioxide gas as outputs. Figure 20 showcases the technologies within this category, along with their respective TRLs and a key benefit for each.
Figure 20: Fossil fuel conversion technologies
RD&D Priority Areas |
Factors |
Cost and efficiency |
Reactor design |
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Balance of plant |
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Cross-cutting RD&D fields |
Environmental |
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Social licence and safety |
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Ancillary technology and services |
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Biomass-based and waste-based processes convert a biomass or municipal waste source (such as agriculture crop residues, forest residues, plantation crops, municipal organic waste, and animal wastes) into hydrogen and other chemicals.54 Municipal solid waste, such as plastics and used tyres, can also be processed via gasification or pyrolysis to generate syngas.55 Generally the conversion of waste is associated with a slightly lower TRL than typical woody biomass conversion processes. Biomass processes are typically less carbon intensive than fossil-based processes and could be considered to generate zero-to-low carbon emissions if they are from a waste biomass source, or negative emissions if from a waste and CCUS is employed. One of the key advantages of biomass and waste conversion is the ability to make use of a waste stream (agricultural biomass or municipal wastes) to generate a valuable hydrogen product or an intermediate product, which can be used for further chemical synthesis. Any heat sources used in biomass and waste conversion process can also be substituted with concentrated solar thermal energy, presenting an opportunity to further integrate renewable energy and reduced carbon dioxide production. A drawback for biomass and waste conversion methods is the variability in feedstock quality and the potential need for pre-treatment before processing.
Plasma-assisted biogas reforming and plasma-assisted biomass conversion methods allow for utilisation of electricity as an energy source for the processes and could enable smaller-scale conversion systems. Figure 21 showcases the technologies within this category, along with their respective TRLs and a key benefit for each.
Figure 21: Biomass and waste conversion technologies
RD&D Priority Areas |
Factors |
Cost and efficiency |
Reactor design |
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Balance of plant |
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Cross-cutting RD&D fields |
Environmental |
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Modelling |
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Ancillary technology and services |
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After hydrogen is produced, it can be converted into a variety of chemicals, named ‘hydrogen carriers’, to improve ease of storage and distribution to the point of utilisation. In the case of direct hydrogen carrier production, some of these carriers can be synthesised directly without the need for the typical precursor hydrogen production step. The chemical carrier can then be used to store and distribute hydrogen or utilised directly in some applications. Direct carrier syntheses present the opportunity to side-step hydrogen production, which could reduce capital equipment costs associated with reduced system components and complexity. It could also allow reduced energy costs associated with the chemical conversion to and from hydrogen gas. In other words, this would skip the production step of the hydrogen value chain. Direct production of hydrogen carriers also presents the opportunity to reduce costs related to capital. Note that this category is not distinguished by the feedstock (as a variety can be used), nor the process employed. Figure 22 showcases the technologies within this category, along with their respective TRLs and a key benefit for each.
Figure 22: Direct hydrogen carrier production technologies
RD&D Priority Areas |
Factors |
Cost and efficiency |
Reactor design |
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Balance of plant |
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Cross-cutting RD&D fields |
Environmental |
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Modelling |
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Thermal water splitting employs elevated temperatures and are used for the direct or chemically-assisted splitting of water into hydrogen and oxygen gas streams. In solar-thermochemical water splitting, concentrated sunlight from a dish or mirror array is used to generate sufficient heat to drive a series of chemical reactions to split water into hydrogen and oxygen. These technologies are advantageous due to the utilisation of heat from direct sunlight as an energy source, and for having zero-to-low associated carbon emissions. It is also possible to source the heat required for thermochemical processes from nuclear power, however this technology is not covered in detail in this study. While currently at TRL 5, a project for construction of the first solar-thermochemical hydrogen demonstration plant in Australia is underway.56 Figure 23 showcases the technologies within this category, along with their respective TRLs and a key benefit for each.
Figure 23: Thermal water splitting technologies
RD&D Priority Areas |
Factors |
Cost and efficiency |
Reactor design |
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Balance of plant |
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Cross-cutting RD&D fields |
Environmental |
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Social licence and safety |
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Biological hydrogen production involves the conversion of organic matter into hydrogen and other products via biological processes. Specifically, the nitrogenase and hydrogenase enzymes present in many bacteria engage in fermentation or photosynthesis to break down biomass into hydrogen and oxygen, carbon dioxide, or other organic compounds. The main advantage of these methods is the ability to convert a biomass or municipal waste stream into a usable energy source. Broadly, biological hydrogen technologies can be divided into those which are driven by light, and those which are independent of light and instead driven solely by biological activity.
Figure 24 showcases the technologies within this category, along with their respective TRLs and a key benefit for each.
Figure 24: Biological hydrogen production technologies
RD&D Priority Areas |
Factors |
Cost and efficiency |
Reactor design |
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Balance of plant |
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Cross-cutting RD&D fields |
Environmental |
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Social licence and safety |
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Ancillary technology and services |
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Photoelectrochemical and photocatalytic water splitting processes involve the use of sunlight to directly split water into hydrogen and oxygen. Note that while driven by solar energy, these processes do not rely on generation of high temperatures and are therefore distinct from solar-thermochemical technologies. These methods have the advantage of being able to use sunlight alone as an energy source without requiring electrical energy input. The systems allow minimal energy conversions and low associated zero-to-low carbon emissions. However, these technologies require large surface areas, are low TRL and currently difficult to scale. Figure 25 showcases the technologies within this category, along with their respective TRLs and a key benefit for each.
Figure 25: Photochemical and photocatalytic hydrogen production technologies
RD&D Priority Areas |
Factors |
Cost and efficiency |
Reactor design |
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Balance of plant |
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Cross-cutting RD&D fields |
Environmental |
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Social licence and safety |
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Ancillary technology and services |
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Hydrogen storage and distribution RD&D should focus on lowering costs and improving storage capacity and roundtrip energy efficiency for multiple end-uses.
The selection of hydrogen storage and distribution pathways requires consideration of the following factors: volumetric and gravimetric density (hydrogen capacity in a given volume and percentage of storage system weight), operating conditions, distribution requirements, customer end-use requirements, and cost and availability of storage materials. It also requires consideration of the roundtrip process costs and energy efficiency, i.e. the overall process and energy costs associated with storing hydrogen within the vessel or carrier, and safely extracting it for use.
To support decision making this section has been structured by the following two classes (see Figure 26):
To inform decision making technologies in each class are supported by a side by side comparison of each production technology and a technology repository which provides further detail into each technology (see Technical Repository).
Figure 26: Hydrogen storage and distribution classes
Compression and liquefaction
Chemical
Hydrogen is compressed or liquefied for storage, without requiring conversion to or bonding with another chemical. This type of storage is the incumbent technology used for storage and distribution of hydrogen (see Figure 27).
This category is divided into compressed hydrogen gas in vessels, liquid hydrogen in vessels, gaseous hydrogen stored in pipelines or gaseous hydrogen stored underground. All technologies in this category benefit from higher-efficiency compression mechanisms (described in detail in Technical Repository).
Figure 27: Compression and liquefaction storage technologies
RD&D Priority Areas |
Factors |
Cost, efficiency and capacity |
Storage system design |
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Balance of plant |
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Cross-cutting research fields |
Environmental |
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Social licence and safety |
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Modelling |
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In chemical storage, hydrogen is stored within a chemical or material, which acts as a hydrogen carrier for denser storage and transport. Hydrogen can later be extracted from the carrier for use. Hydrogen carriers yield the primary benefit of offering denser hydrogen storage at milder conditions than gaseous or liquid hydrogen. It is important to consider the energy costs to convert to and from hydrogen carriers, the rates of hydrogen loss during storage and distribution; and the ability to replenish a carrier for hydrogen storage reuse. These factors impact the overall efficiency of a given distribution option, and the costs associated with carrier lifetimes.
Figure 28: Chemical storage technologies
RD&D Priority Areas |
Factors |
Cost, efficiency and capacity |
Storage system design |
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Balance of plant |
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Cross-cutting research fields |
Environmental |
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Social licence and safety |
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Hydrogen utilisation RD&D should focus on supporting and lowering the cost of unique hydrogen application end-use requirements, developing new hydrogen utilisation technologies particularly in large scale industrial settings, and removing entire process steps through direct carrier utilisation.
Hydrogen has a myriad of applications and potential utilisation cases (see Figure 1). Many of these applications and utilisations have been covered in other parts of this report, such as in the gas networks for combustion to produce heat (Part 2.2) and in industrial processes (Part 2.5). This part builds on previous sections by describing the possible direct utilisation of hydrogen carriers or the use of hydrogen and hydrogen carriers in electricity generation and internal combustion engines.
Hydrogen carriers can be used directly, i.e. before they are converted back to hydrogen, either through combustion or electrochemistry. Electricity generation will also be discussed as an application in terms of stationary (fuel cells and turbines) and mobile (fuel cells) electricity generation.
It should be noted that this section does not comprehensively cover all hydrogen and hydrogen carrier utilisation technologies. Further work could be conducted to cover this area in greater detail, including the variations of each technology which exist.
Synthetic fuel hydrogen carriers can also be used directly, rather than requiring a conversion back to hydrogen for use. Using carriers directly saves energy costs, acts as a low-carbon option for use in mature technologies and in some cases can utilise existing infrastructure where hydrogen technologies currently cannot. They are also currently used as feedstocks, which means there is already an established market for them as well as distribution infrastructure. Different utilisation cases can be seen in Figure 29. To be low carbon, the synthesised fuels need to derive their carbon source sustainably, such as through carbon capture or biomass.
Figure 29: Direct use of hydrogen carriers
Utilisation |
Methane (CH4) |
Ammonia (NH3) |
Methanol (CH3OH) |
DME57 (CH3OCH3 |
Formic Acid (CH2O2) |
Gas network injection |
X | ||||
Transport fuel |
X | O | X | X | |
Fuel cell input |
X | O | X | X | O |
Feedstock |
X | X | X | X | X |
Electricity via combustion |
X | O | X |
X - Developed | O - Developing
Hydrogen can be combined with oxygen in electrochemical processes or combusted in turbines to produce electricity; or combusted in internal combustion engines (ICEs) to produce heat energy and mechanical work for vehicles. Hydrogen’s ability to be stored for long periods of time means it can be consumed for peaking or back up electricity generation services, at small or large scale. As mentioned (Figure 29), select hydrogen carriers can also be used directly in this manner to generate electricity and other forms of energy.
Figure 30: Emerging hydrogen fueled electricity generation technologies
The RD&D priorities for fuel cells, turbines, and internal combustion engines are described below. Fuel cells are in effect the reverse of an electrolyser. Therefore, their components and processes are similar to electrolysers, resulting in similar RD&D needs. The US Department of Energy has set out clear technical goals for their fuel cell program, some of which are incorporated below.62
RD&D Priority Areas |
Factors |
Fuel cell cost and efficiency |
Stack design |
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Balance of plant |
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Turbine design63 |
Durability and function |
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Cross-cutting RD&D fields |
Safety |
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Environment |
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Cross-cutting RD&D in fields such as the environment, social licence and safety, policy and regulation, modelling and ancillary technology and services is required across the hydrogen value chain. When integrated, these fields can help achieve greater outcomes for industry, the community and the economy.
The development of a hydrogen economy will not just be based on individual technologies or singular aspects of the value chain. There are numerous considerations that must be understood and RD&D activities that must be undertaken concurrently to ensure a state-of the-art, environmentally sound, socially responsible, commercially viable and adequately regulated hydrogen roll out.
Five cross-cutting RD&D fields have been identified through interviews and analysis (see Figure 31). In some cases, these RD&D fields are vital to project development and often have local or geographic parameters that require a research response tailored to Australia’s unique circumstances. International examples should be borrowed, but not relied on, as Australia and its communities have unique needs that require ongoing consideration and engagement.
Each of the cross-cutting RD&D fields is required across the value chain and essential to addressing key hydrogen industry challenges.
Importantly, these five areas are interrelated and can be integrated to achieve greater industry and economy-wide outcomes. For example, value and opportunities related to sector coupling can be enhanced through the combination of research efforts in land use and land rights, community engagement and modelling; and supported through the development of ancillary technologies that monitor and measure outcomes. Such combinations could lead to a more integrated approach to industry development, drive new opportunities and help to understand dividends for the entire economy. While this interrelationship could be a strength, silos across these RD&D fields can lead to duplication of effort and subpar outcomes.
Figure 31: Cross-cutting RD&D fields
Environmental considerations are vital to any project. Assessments, planning, and considerations need to be included as part of any hydrogen technology implementation or demonstration project.
There have been many previous environmental assessments for other industries – implementors should draw learnings and existing expertise from these. However, there will be new risks and considerations that are specific to hydrogen at scale and in an Australian context which will need to be understood and acted upon.
CONSIDERATION |
LAND USE AND ECOLOGICAL IMPACTS |
Context |
Land use and area requirements need to be considered for production facilities and supporting infrastructure. This is particularly important for large scale centralised hydrogen production facilities which could require significant renewable resources. There are also ecological implications to large scale land use such as soil structure degradation, interruption of natural water cycles, or impacts on flora and fauna species. Land use consideration also includes land rights, discussed further in policy and regulation (Part 3.4.5). |
RD&D opportunities |
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CONSIDERATION |
WATER USE |
Context |
Many hydrogen production methods involve the conversion or reaction of water. The quality of water required can vary with some technologies, such as commercial electrolysers, allowing the use of low-grade potable water as an input. The quantity of water is highly dependent on hydrogen end-use requirements. For example, the total volume of water to support an Australian hydrogen export industry could be in the order of 5.6 GL to 28.6 GL per year by 2040.64 While these volumes are far lower than in other large industries, they are not insignificant – especially for communities in regional areas. As such, sourcing sustainable quantities of water needs to be considered to produce hydrogen at scale. Importantly, appropriate mechanisms for pre-treatment of water and post-handling of waste streams (including salts and other residues) will be important to ensure minimal detriment to the environment. |
RD&D opportunities |
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CONSIDERATION |
ACHIEVING ZERO-TO-LOW CARBON EMISSIONS |
Context |
While the long-term objective is for zero carbon emissions in hydrogen production, some hydrogen production methods produce carbon dioxide that needs to be managed, for example with carbon capture, utilisation and storage (CCUS). Beyond production it is also important to consider how best to achieve zero-to-low carbon emissions across the value chain. For example, there are also emissions associated with the establishment of infrastructure and some methods of hydrogen distribution (e.g. delivery of hydrogen via trucks). In order to achieve zero-to-low carbon emissions, procedures for capturing and storing or utilising carbon dioxide will need to be incorporated across the hydrogen value chain. |
RD&D opportunities |
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CONSIDERATION |
ATMOSPHERIC IMPACTS FROM FUGITIVE HYDROGEN AND AMMONIA EMISSIONS |
Context |
In addition to managing CO2, the effects of fugitive hydrogen and ammonia emissions require examination. At this stage the effects are largely unknown, let alone on a large scale. |
RD&D opportunities |
|
CONSIDERATION |
MATERIALS AND WASTE MANAGEMENT |
Context |
Due to finite material availability and current global waste issues, material recyclability and the mitigation of unnecessary waste is important. Additionally, if large scale transport and export is realised, the risk of spills in marine and other environments must be mitigated. |
RD&D opportunities |
|
Given the combustible nature of hydrogen, safe production, distribution and use is a priority. Demonstrating and communicating the outcomes of safe hydrogen projects is a vital step in building community support. Currently, there is a low level of public awareness about hydrogen which results in elevated perceptions of safety risks regarding accidents, collisions, fires and explosions.
CONSIDERATION |
SAFETY AND STANDARDS |
Context |
Hydrogen is already used by large industries in Australia and overseas. As such, many industries have established safety standards, codes and practices associated with the production, storage and distribution and use of hydrogen. These approaches can be leveraged and applied to the variety of hydrogen end-use applications that are being developed. Caution should be taken given the different risk profiles of a well-managed and controlled industrial facility using hydrogen compared to hydrogen use in general public environments. As a hydrogen economy would involve hydrogen being used in different applications and sometimes different forms, further testing and studies may be required. The role of RD&D in safety will be informed by industry as their needs emerge and the RD&D ecosystem should to be ready and prepared to play that role. Importantly, any Australian RD&D activity related to hydrogen safety should be closely aligned to international efforts to avoid duplication of effort. For example, closely collaborating with or attending conferences related to Hydrogen Europe’s Hydrogen Safety for Energy Applications (HySEA) project which is a consortium that aims to improve hydrogen safety through pre-normative research on vented deflagrations.66 |
RD&D opportunities |
|
CONSIDERATION |
SOCIAL LICENCE AND SOCIO-TECHNICAL RISK68,69,70 |
Context |
Community engagement and social acceptance of small- and large-scale hydrogen projects and technology deployments is essential. It requires deep understanding of local stakeholders’ expectations and an understanding of the challenges and needs that are of the greatest importance to local communities. RD&D is required to deliver empirically-based, trusted and clear explanations of the costs, risks and benefits associated with developing a hydrogen economy. RD&D can also help define and realise co-benefits from new hydrogen projects. There are opportunities to draw on lessons from established industries and apply them to a new hydrogen industry. It is anticipated that many new hydrogen development projects will be in regional areas and this will require fit-for-purpose engagement approaches. |
RD&D opportunities |
|
CONSIDERATION |
INDIGENOUS COMMUNITY AND TRADITIONAL OWNERS |
Context |
Development of Australia’s hydrogen industry presents a significant opportunity for Australia’s Indigenous community to be central to the energy transition. Rather than just being stakeholders that sign off on land use agreements under the Native Title framework, Traditional Owners and Indigenous communities have significant, long-term economic opportunities. However, they require the right information to drive these opportunities. Alongside the RD&D that is required to gain general community engagement and social acceptance (discussed above), further research is required to ensure that Indigenous communities are involved in and benefit from the expansion of the hydrogen industry on their country. |
RD&D opportunities |
|
Computational modelling is a tool that is used to study the behaviour of different systems through computer simulations. It can range from studying molecular level attributes to analysis of the entire hydrogen value chain and should be performed prior to demonstration projects or experiments. Modelling can aid and accelerate decision making, reduce project uncertainties and complexities, provide insight to optimise systems and integration, narrow technology selection and demonstrate and determine project value and returns.
CONSIDERATION |
MODELLING |
Context |
Different challenges will require different granularities of modelling. Modelling can be applied to help overcome various challenges across the hydrogen value chain from the molecular level though to the value chain integration. |
RD&D opportunities |
Molecular:
Device-level:
Value chain integration:
Geographical:
Techno-economic:
Environmental:
|
Policy and regulation will largely be the domain of policy and law makers. The RD&D community can support the effective development of policy and regulation by remaining informed, responsive and ready to lend expertise as the industry develops. It is important to note that Australia’s National Hydrogen Strategy has recommendations that align with many of the opportunities highlighted in this section.73
CONSIDERATION |
POLICY AND REGULATION |
Context |
As the hydrogen industry is still developing and will cross numerous sectors, policy and regulation will continue to be reviewed and developed with a view to strike a balance that ensure planning, safety, installation and operation can occur without undue legal burdens. |
RD&D opportunities |
|
CONSIDERATION |
LAND RIGHTS |
Context |
In addition to land use (discussed in Part 3.4.1), land rights and area requirements need to be considered for production facilities and supporting infrastructure. This is particularly important for large scale centralised hydrogen production facilities which could require vast renewable resources on land over which Indigenous traditional owners have rights and interests, and which may contain important cultural sites in a cultural landscape. Native title and land rights legislation sets out ways in which project proponents can come to agreements over land use with traditional owners. While relevant legislation sets out the minimum standards that have to be met, it is accepted that ‘best practice’ agreement making must go above these legislative minimums to achieve a ‘social licence to operate’. The process for achieving this engagement can be guided through direct interaction with regional land councils and native title representative bodies who can assist land owning groups in obtaining independent legal, scientific and business advice. Cultural heritage legislation must also be considered and complied with. |
RD&D opportunities |
|
CONSIDERATION |
GUARANTEES OF ORIGIN |
Context |
Countries importing hydrogen are doing so in order to decarbonise. Therefore, they will require assurances that the commodity is derived from clean methods. Guarantees of origin or hydrogen accreditation schemes will play a key role in defining renewable hydrogen and will support social acceptance in the hydrogen being used. |
RD&D opportunities |
|
Australia has many strengths in advanced manufacturing, technology and services, especially with regards to technology integration and process improvement. Australian manufacturers also have a strong reputation for quality, safety and reliability.76 These strengths can be leveraged to develop specialised hydrogen components such as sensors and separation technologies; and to streamline and integrate hydrogen processes, such as hydrogen compression, liquefaction, or conversion. In addition to creating technology and service export opportunities, the development of these ancillary technology and service areas can lead to local capability that can be leveraged in projects.
CONSIDERATION |
SEPARATION MATERIALS AND OTHER COMPONENTS |
Context |
Membranes and other separation materials and technologies are used in many processes and technologies across the hydrogen value chain. For example, the separation of hydrogen from a given hydrogen carrier or the separation of hydrogen from blended gas for different residential, commercial and industrial customers. Beyond separation materials is a broader need to develop specialised components and hydrogen compatible materials for use across the value chain. These include but are not limited to storage vessels, valves and fittings. While there are specific requirements and RD&D needs for each technology, all can leverage developments in advanced manufacturing and material sciences to improve outcomes. |
RD&D opportunities |
|
CONSIDERATION |
SPECIALISED SENSORS, MONITORING DEVICES AND OTHER COMPONENTS |
Context |
There are opportunities for the hydrogen industry to employ state-of-the-art advanced manufacturing and digital technologies to develop specialised sensors, monitoring devices and other components for use across the hydrogen value chain. For example, the development of sensors that can help provide transparency across the value chain and support hydrogen provenance activities or improve safety. |
RD&D opportunities |
|
CONSIDERATION |
TECHNOLOGY INTEGRATION AND PROCESS IMPROVEMENT |
Context |
Global hydrogen RD&D will result in many new technologies and processes that can be adapted and integrated into Australian operations. Integration of technologies such as energy sources, production and storage systems will require considerable effort and iterative testing to optimise efficiency. Australia has a noted strength in this area, with many businesses specialised in modifying and adapting innovations developed by other parties.77 |
RD&D opportunities |
|
Mobilising the RD&D community to address hydrogen industry development challenges requires coordinated actions from across the research community, industry and government
While there is no silver bullet to enhancing Hydrogen RD&D outcomes in Australia, based on interviews and analysis this report has identified four interrelated themes with specific actions that could be taken. Many of the themes and actions identified are related to recommendations within Australia’s National Hydrogen Strategy.78 For example, the international collaboration theme which could be supported by actions related to international agreements within the Strategy.
These themes are not unique to hydrogen RD&D and in many cases apply equally to Australia’s national innovation system. Therefore, any effort to enhance Australia’s hydrogen RD&D outcomes can also be leveraged to support improvements in Australian innovation and RD&D more broadly
RD&D strategy: Establish and monitor ongoing RD&D priorities for Australia as part of national hydrogen industry strategy. Activities should focus on encouraging hydrogen RD&D collaboration, identifying ongoing RD&D opportunities and reporting on progress. This monitoring should be linked to other monitoring of hydrogen industry development as identified by Australia’s National Hydrogen Strategy.
Industry scale-up: Enable hydrogen industry growth through hydrogen hubs that support scale-up and establish pathways for greater RD&D engagement and technology development.
International collaboration: Establish joint programs with international Governments and industry to facilitate RD&D connections and contributions to international hydrogen RD&D efforts, with a focus on supporting timely global and domestic hydrogen industry development.
Culture and capability: Build collaborative hydrogen industry-research sector interactions through engagement programs and activities which unite industry and RD&D communities in identifying and addressing key industry challenges.
As both the domestic and global hydrogen industry grow, it is anticipated that Australia’s RD&D opportunities and priorities will evolve over time. Keeping track of these evolving RD&D opportunities and priorities will require a coordinated and ongoing strategic review and response. This will be key to realising the economic gains available from the hydrogen industry and maximising the value of Australia’s RD&D contribution to it.
Proposed action: Establish and monitor ongoing RD&D priorities for Australia as part of national hydrogen industry strategy. Activities should focus on encouraging hydrogen RD&D collaboration, identifying ongoing rd&d opportunities and reporting on progress. This monitoring should be linked to other monitoring of hydrogen industry development as identified by Australia’s National Hydrogen Strategy.
The insights from this report provide the foundations for a hydrogen RD&D strategy and the identification of Australian RD&D priorities. However, there is a need for further work to occur. This includes continuing to develop and optimise this analysis, establishing mechanisms that support RD&D investment, championing RD&D activities and supporting knowledge sharing across the broader innovation ecosystem.
Key activities to support the ongoing establishment and monitoring of RD&D priorities could include:
There is a global need for commercial-scale investments which demonstrate the viability and cost-competitiveness of hydrogen industry pathways. Supporting this scale-up will require concerted and collaborative action from industry, government and communities, with RD&D acting as a critical enabler. However, a long-term risk for Australia’s hydrogen industry could be created if there is a lack of domestic collaboration and coordination.
Proposed action: Enable industry growth through hydrogen hubs that support scale-up and establish pathways for greater RD&D engagement and technology development.
The creation of hydrogen hubs has been identified by the National Hydrogen Strategy as key to supporting industry development by making infrastructure more economic, allowing for efficiencies from scale, fostering innovation, facilitating the sharing of expertise and services and promoting sector-coupling.80 This finding is aligned with international analysis. For example, the recent IEA hydrogen report81 highlighted the value of hubs and industrial clusters to support hydrogen industry growth and members from Mission Innovation’s Innovation Challenge 8: Renewable and Clean Hydrogen (IC8) developed the concept of Hydrogen Valleys.82
Most importantly for the RD&D community, the establishment of relevant hubs would help bring together industry stakeholders and support engagement; provide clearer direction on demonstration and scale-up requirements; and help maintain focussed effort and a long-term perspective. To be successful, this approach would require substantive guidance at a national level to see beyond immediate interests in order to capture the long-term RD&D opportunities and provide the greatest future benefit.
Key activities to support the hydrogen hubs include:
International hydrogen RD&D collaboration is an opportunity for Australia. It can help to avoid unnecessary duplication of effort across collective global industry opportunities and challenges. It offers a more effective way to accelerate hydrogen technology development and adoption by leveraging existing capability, infrastructure and talent; pooling capital; and sharing risks and rewards. Finally, it can support international relationship building, using science (and science networks) as a vehicle for international diplomacy and strengthening Australia’s bilateral relationships.
Findings from researcher interviews and analysis highlighted that international RD&D collaborations in hydrogen is currently often driven by chance and not connected to a broader national or industry strategy.
Proposed action: Establish joint programs with international Governments and industry to facilitate RD&D connections and contributions to international hydrogen RD&D efforts, with a focus on supporting timely global and domestic hydrogen industry development.
While Australia has established international research funding schemes which call for multi-lateral partners, very few are hydrogen-specific, and challenges exist that limit the uptake and success of international RD&D collaborations. Successfully establishing joint programs with international organisations and governments requires deep understanding of international market drivers and the strategic goals of individual international proponents. When compared against Australia’s priorities and RD&D capabilities, this understanding will help identify collaborations that will benefit both the target country and Australia. While analysis can help, many insights and opportunities will be gained by actively fostering international relationships.
Key activities to support the establishment of joint programs could include:
Figure 32: International hydrogen collaboration platforms
The following is a selection of international hydrogen collaboration platforms:
Figure 33: Understanding international markets
A key resource to support Australia’s understanding of international markets is the Future Fuels CRC’s report titled Advancing Hydrogen: Learning from 19 plans to advance hydrogen from across the globe.99 The report provides a comprehensive summary of national and regional strategies and industry roadmaps for the development of hydrogen and its derivatives. Its aim is to help all interested in the emerging hydrogen industry to understand what is happening elsewhere.
Building on the report’s analysis, the figure below presents primary hydrogen end-uses described in country strategies and their alignment with the five Australian industry opportunities discussed in this report. With further work these insights can be leveraged to understand RD&D gaps and ultimately identify opportunities for international hydrogen RD&D collaborations.
H2 production for export |
H2 in gas networks |
H2 for industrial heat |
H2 for household heating |
H2 for heavy vehicles |
H2 for passenger vehicles |
H2 for electricity and combined heat/power gen. |
H2 for industrial feedstocks |
|
Brunei |
||||||||
China |
X | X | X | |||||
European Union |
X | X | X | X | X | X | ||
France |
X | X | ||||||
Germany |
X | X | X | |||||
Japan |
X | X | X | |||||
Netherlands |
X | X | X | |||||
Norway |
X | X | X | |||||
Republic of Korea |
X | X | X | X | ||||
United Kingdom |
X | X | X | X | X | |||
USA |
X | X | X |
X - Primary hydrogen end-uses inferred from the country strategies. Note: Highly simplified summary adapted from Kosturjak A, Dey T, Young M D, Whetton S (2019) Advancing Hydrogen: Learning from 19 plans to advance hydrogen from across the globe, Future Fuels CRC.
There are many individual researchers and institutions working in hydrogen that are already highly engaged with industry. However, it is not consistently occurring across the Australian hydrogen RD&D community. Based on interviews and analysis, many of the industry and research collaboration issues stem from differences in RD&D attitudes, drivers and objectives across innovation stakeholders. As highlighted in Part 1, this challenge is cultural and broader than hydrogen RD&D in Australia.
Proposed action: Build collaborative hydrogen industry-research sector interactions through engagement programs and activities which unite industry and RD&D communities in identifying and addressing key industry challenges.
While there is no simple solution to improve collaboration outcomes for all Australian RD&D, addressing the challenge in the hydrogen industry is achievable given the nascent state of the industry and hydrogen RD&D. While new hydrogen-specific programs could be created, there are many well-established mechanisms that could be leveraged to improve business and research collaboration. For example, CRCs and other programs and funding mechanisms available through the Australian and State Government.100
Several researchers interviewed for this project had an appreciation that the research community itself often does not have a good understanding of industry challenges and does not always present research opportunities in a way that aligns to industry needs. Similarly, those in industry that were interviewed acknowledged that they need to improve how they engage with research, better understand how to frame industry challenges and look beyond a two-year horizon. As stated, this is a cultural challenge that can only be addressed through the development of relationships over time.
Key activities to help build collaborative hydrogen industry-research sector interactions could include:
International momentum towards the development of a clean hydrogen industry is building, with industry development quickly approaching an inflection point and beginning a period of rapid growth.
Critical to Australia securing its place in the global hydrogen opportunity and developing a world class industry is its collaborative, transdisciplinary and strategically aligned RD&D ecosystem.
There are many hydrogen industry growth opportunities for Australia, including development of a new hydrogen export industry, the use of hydrogen in gas networks, and for transport, electricity systems support and industrial processes. As the market develops further, there will be even more opportunities for Australia beyond those identified, especially for the nation’s advanced manufacturing sector.
Australia’s hydrogen opportunities, and the RD&D priorities to support them, will continue to evolve based on changes in national priorities, progress in global and domestic hydrogen projects, and other developments in Australia’s hydrogen industry and RD&D capabilities.
Beyond supporting Australia’s National Hydrogen Strategy, this report aims to spark a broader national discussion between industry, government and the research community about the role of RD&D and how it can be best leveraged now and into the future. To support this objective, individual parts of the report (and the Technical Repository103) have been designed as a framework that can be revisited and revised as the industry develops or as new information becomes available.
The scale of Australia’s hydrogen opportunity is too large to be left to chance. While the nation has a well-positioned hydrogen RD&D community, successfully leveraging this to build a domestic industry and support market activation requires collaboration. Strategic, coordinated action is critical in realising the opportunities available through RD&D to facilitate the growth of Australia’s emerging hydrogen industry.
Input for this report was sought from a broad range of stakeholders. This includes consultations with representatives from 35 industry and government organisations as well as approximately 80+ researchers from the following research institutions:
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