One of Australia’s leading energy utilities, EnergyAustralia claims that clean hydrogen may eventually replace natural gas for power plants, eliminating the need for costly nuclear generators.
Australia’s federal opposition argues that nuclear power should take over from coal as the main power source. However, critics say that the high capital costs and long construction periods make nuclear energy a non-viable solution for Australia. On the contrary, EnergyAustralia thinks that ‘green hydrogen’ could develop into a commercially viable power source faster than getting a nuclear industry off the ground.
Green hydrogen, made using renewable energy, burns cleanly, making it a potential replacement for gas-fired power stations during times of low wind and solar generation. Mark Collette, Chief Executive of EnergyAustralia, believes speeding up the process of adopting ‘green hydrogen’ is key to developing Australia’s renewable energy resources.
Earlier this year, EnergyAustralia launched Tallawarra B, the first gas-fired power station in NSW in over a decade. With a capacity of firing up to full load within 30 minutes, and ability to function on a starting mix of 5% hydrogen, it may play a crucial role in ensuring a smooth transition to renewables.
Although green hydrogen has huge potential, it is currently expensive to produce and not yet viable at scale, with most of today’s hydrogen still made using fossil fuels. However, government-funded projects across the country could help drive its development. For instance, South Australia is funding a 250-megawatt electrolyser device to make green hydrogen, and a 200-megawatt hydrogen power station.
The Grattan Institute believes that hydrogen has the most potential as a decarbonisation tool in industrial heat for manufacturing and backup power generation for the grid. However, its adoption will depend on the ‘techno-economics’ of the hydrogen supply chain, which varies from region to region.
EnergyAustralia is considering the use of hydrogen in Tallawarra B’s fuel mix by 2025, but the timeline could change depending on the progress of the hydrogen manufacturing industry. Global energy consultancy, Wood Mackenzie, maintains that green hydrogen remains expensive currently, but scaling up and innovation should make it a competitive energy source by the early 2030s.
Overall, the future of hydrogen within Australia’s energy sector looks promising, though achieving its potential will depend on overcoming key challenges, including cost and capacity for large-scale production.chat.completion
