7 Discussion
99
As displayed in appendix 24, when investigating the renewable energy technical potential of the APAC markets, the research work shows that all the APAC
markets could cover their own renewable hydrogen demand while operating profitably power-to-gas systems. However, it is unrealistic to assume that the APAC
markets would use their full technical potential of renewable energy capacity.
In this context, the second finding is that the solution for a deep decarbonisation of the industry sectors under the research scope is international rather than
national. Australia has the capacity to produce enough renewable hydrogen to
cover the demand of the APAC markets, while other APAC markets, such Japan
and South-Korea in line with their respective hydrogen strategies, could focus on
the development of downstream applications.
Should renewable hydrogen play a central role in the future energy landscape,
(1) improvement, (2) clarification, and (3) harmonization of the present renewable
energy and hydrogen policy frameworks are required.
(1) The improvement of the policy frameworks could follow a path like the one
under development in the Netherlands. Linking renewable energy and renewable hydrogen production into integrated tenders would achieve two goals. In
a subsidy-free policy framework, it would mitigate the exposure of the large
renewable energy project developers from the merchant risk. Furthermore, the
tenders would be won based on an objective criterion being the lowest price of
renewable hydrogen, steering the renewable hydrogen production costs down.
(2) A clarification of the policy framework regarding the origin of the hydrogen
is required. With ambiguous definitions and technology neutral strategies, it is
not possible to differentiate the renewable hydrogen from the fossil fuel-based
hydrogen. This prevents a fair competition and possibly further premium
remuneration for the renewable hydrogen.
(3) As the decarbonisation of the industry sectors falling into the research scope
would find a solution at the international scale, the harmonization of the
technical specifications, standards, operating procedures, and legal framework is required. This would imply coordinating the national strategies and
complementing the respective APAC markets strengths to achieve a common
decarbonisation goal.
99
As displayed in appendix 24, when investigating the renewable energy technical potential of the APAC markets, the research work shows that all the APAC
markets could cover their own renewable hydrogen demand while operating profitably power-to-gas systems. However, it is unrealistic to assume that the APAC
markets would use their full technical potential of renewable energy capacity.
In this context, the second finding is that the solution for a deep decarbonisation of the industry sectors under the research scope is international rather than
national. Australia has the capacity to produce enough renewable hydrogen to
cover the demand of the APAC markets, while other APAC markets, such Japan
and South-Korea in line with their respective hydrogen strategies, could focus on
the development of downstream applications.
Should renewable hydrogen play a central role in the future energy landscape,
(1) improvement, (2) clarification, and (3) harmonization of the present renewable
energy and hydrogen policy frameworks are required.
(1) The improvement of the policy frameworks could follow a path like the one
under development in the Netherlands. Linking renewable energy and renewable hydrogen production into integrated tenders would achieve two goals. In
a subsidy-free policy framework, it would mitigate the exposure of the large
renewable energy project developers from the merchant risk. Furthermore, the
tenders would be won based on an objective criterion being the lowest price of
renewable hydrogen, steering the renewable hydrogen production costs down.
(2) A clarification of the policy framework regarding the origin of the hydrogen
is required. With ambiguous definitions and technology neutral strategies, it is
not possible to differentiate the renewable hydrogen from the fossil fuel-based
hydrogen. This prevents a fair competition and possibly further premium
remuneration for the renewable hydrogen.
(3) As the decarbonisation of the industry sectors falling into the research scope
would find a solution at the international scale, the harmonization of the
technical specifications, standards, operating procedures, and legal framework is required. This would imply coordinating the national strategies and
complementing the respective APAC markets strengths to achieve a common
decarbonisation goal.