3.3 The Review of APAC Hydrogen Policy Landscape
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hydrogen from coal gasification and SMR with CCS enabling carbon emissions
abatement. The strategy promotes an adaptative pathway consisting on demonstrating and developing the technologies and the supply chains until 2025. Between
2015 and 2019, Australia has invested over AUSD 146 million in R&D, feasibility, demonstration, and pilot projects. From 2025 on and once solid foundations
are established, the strategy entails a large-scale production, supply chains and
market development, for domestic purpose, but especially for exportation purpose.
The strategy relies on a possible growth of global hydrogen demand from 72 million tons in 2020 to 77 million tons in 2030 and reaching possibly 300 million
tons by 2050. While Australia currently produces 0,5 million tons of hydrogen
per year for domestic use only, 0,026 to 0,345 million tons could be exported by
2025, 0,242 to 1,088 million tons by 2030 and 0,621 to 3,180 million tons by
2040. The targeted importing countries would be Japan, Korea, and China. Japan
would account for more than 60% of the Australian hydrogen exportation (Acil
Allen 2018). If this plan is realized, up to 7.600 jobs could be created as well as
AUSD 11 billion in GDP by 2050. Australia considers developing so-called “hydrogen hubs” and sector coupling as key contributors for the realisation of their
strategy. The report identifies the public awareness as a key success factor.
When considering hydrogen produced from renewable energy, 11% of Australia territory could be used for solar PV, wind, and hydropower production
(872.000 km 2 ). However, electrolysis requires water and therefore renewable
hydrogen production would be better suited on coastal areas while using desalinated water. This would require 3% of the Australian territory surface and could
cover the entire global demand in 2050 as estimated by the Hydrogen Council.
The report suggests that between 2018 and 2020, Australia has developed its renewable energy production capacity four to five times the rate observed in Europe,
Japan, US, or China. 10 gigawatts of wind power capacity should be installed by
end of 2020 and close to 30 gigawatts of solar PV.
Australia is a net exporter of coal and natural gas. The strategy emphasises
the great potential of hydrogen production through coal gasification and SMR
associated with CCS. The document entails that a 90% CO 2 sequestration rate in
depleted oil and gas fields or in salt caverns is technically feasible.
The demand for water maybe a challenge in case of large-scale hydrogen production. Coal gasification and water electrolysis both require 9 kg of water per
kg of hydrogen produced while SMR requires 4,5 kg of water per kg of hydrogen
produced.
In an evaluation of the economic viability of a sustainable hydrogen supply chain, the engineering consultancy firm Jacobs has compared three business
models that could be implemented in the Australian context (Jacobs 2019). The
21
hydrogen from coal gasification and SMR with CCS enabling carbon emissions
abatement. The strategy promotes an adaptative pathway consisting on demonstrating and developing the technologies and the supply chains until 2025. Between
2015 and 2019, Australia has invested over AUSD 146 million in R&D, feasibility, demonstration, and pilot projects. From 2025 on and once solid foundations
are established, the strategy entails a large-scale production, supply chains and
market development, for domestic purpose, but especially for exportation purpose.
The strategy relies on a possible growth of global hydrogen demand from 72 million tons in 2020 to 77 million tons in 2030 and reaching possibly 300 million
tons by 2050. While Australia currently produces 0,5 million tons of hydrogen
per year for domestic use only, 0,026 to 0,345 million tons could be exported by
2025, 0,242 to 1,088 million tons by 2030 and 0,621 to 3,180 million tons by
2040. The targeted importing countries would be Japan, Korea, and China. Japan
would account for more than 60% of the Australian hydrogen exportation (Acil
Allen 2018). If this plan is realized, up to 7.600 jobs could be created as well as
AUSD 11 billion in GDP by 2050. Australia considers developing so-called “hydrogen hubs” and sector coupling as key contributors for the realisation of their
strategy. The report identifies the public awareness as a key success factor.
When considering hydrogen produced from renewable energy, 11% of Australia territory could be used for solar PV, wind, and hydropower production
(872.000 km 2 ). However, electrolysis requires water and therefore renewable
hydrogen production would be better suited on coastal areas while using desalinated water. This would require 3% of the Australian territory surface and could
cover the entire global demand in 2050 as estimated by the Hydrogen Council.
The report suggests that between 2018 and 2020, Australia has developed its renewable energy production capacity four to five times the rate observed in Europe,
Japan, US, or China. 10 gigawatts of wind power capacity should be installed by
end of 2020 and close to 30 gigawatts of solar PV.
Australia is a net exporter of coal and natural gas. The strategy emphasises
the great potential of hydrogen production through coal gasification and SMR
associated with CCS. The document entails that a 90% CO 2 sequestration rate in
depleted oil and gas fields or in salt caverns is technically feasible.
The demand for water maybe a challenge in case of large-scale hydrogen production. Coal gasification and water electrolysis both require 9 kg of water per
kg of hydrogen produced while SMR requires 4,5 kg of water per kg of hydrogen
produced.
In an evaluation of the economic viability of a sustainable hydrogen supply chain, the engineering consultancy firm Jacobs has compared three business
models that could be implemented in the Australian context (Jacobs 2019). The