Kawasaki Reshapes Japan-Australia Hydrogen Venture Amid Changes
What’s going on here?
Kawasaki Heavy Industries is revising its bold hydrogen supply chain plan between Japan and Australia. Delays in Australian coal project approvals have prompted a shift to Japan-produced hydrogen and reduced carrier sizes to suit current market demands.
What does this mean?
Kawasaki’s pivot highlights its flexible approach to sustainable energy. The updated plan focuses on sourcing hydrogen domestically in Japan, with future scope to access Australian coal-derived hydrogen when regulatory challenges are resolved. Additionally, Kawasaki is opting for smaller liquefied hydrogen carriers of 40,000 cubic meters, aligning with immediate market needs and logistical constraints. This comes after the successful journey of the world’s first liquefied hydrogen carrier from Australia to Japan in 2022, marking a milestone in hydrogen transport. The project has strong backing from both Japanese and Australian governments, supporting their carbon neutrality goals by 2050 and efforts to become a global hydrogen exporter. Last year, the Japanese government invested $1.45 billion in hydrogen projects, underscoring its commitment to reducing CO2 emissions and advancing clean energy.
Why should I care?
For markets: A focused shift toward sustainability.
Kawasaki’s adjustments in its hydrogen strategy highlight a growing emphasis on domestic production and adaptable transport solutions to meet changing demand. This realignment might encourage other industries to consider flexibility and local resource use as key elements in future energy supply chains. Investors should pay attention to the broader trend of sustainability integration, as it could shape hydrogen market dynamics and global opportunities.
The bigger picture: Hydrogen as a global green game-changer.
With international decarbonization commitments rising, hydrogen is becoming crucial to reducing reliance on fossil fuels. Kawasaki’s strategy adjustments reflect an adaptive approach and underscore hydrogen’s increasing role in Japan’s quest for carbon neutrality by 2050. As more countries and companies commit to hydrogen technology, the clean energy landscape expands, making hydrogen a cornerstone for future environmental and economic policies worldwide.
Link:https://finimize.com/content/kawasaki-reshapes-japan-australia-hydrogen-venture-amid-changes
ARENA Impact clear in 2023-24 with almost $400 million to renewable energy projects – Hydrogen and Iron & Steel Funding Rounds
December 12, 20243 min read
ARENA Impact clear in 2023-24 with almost $400 million to renewable energy projects – Hydrogen and Iron & Steel Funding Rounds
The Australian Renewable Energy Agency (ARENA) has issued its Annual Report for 2023-24, demonstrating a strong year of delivery, funding and impact of innovative projects accelerating Australia’s transition to net zero emissions.
In financial year 2023-24, ARENA increased funding committed to $392.5 million and doubled the number of projects committed to 72, up from $358 million and 35 projects in 2022-23.
ARENA’s funding was underpinned by the project assessment and approval process for two funding rounds:
- Community Batteries Round 1 – Conditional approval of up to $143 million to support the roll out of up to 370 community batteries across Australia
- Hydrogen and Iron & Steel Funding Rounds – $59.1 million in funding across 21 research projects to support research and development and commercialisation activities covering renewable hydrogen and low emissions iron & steel.
ARENA CEO Darren Miller said the funding rounds represented both what the agency has traditionally done best, while also supporting the energy transition with new asset classes and technologies.
ARENA’s impact is based on collaboration, funding and knowledge sharing. An essential part of that working model is the strong partnership we have built with industry, regulators, investors and innovators,
Whether that be at the research and development stage, or through to deployment, it’s important that the public and private sectors work together to maximise the benefits of renewable energy for Australian consumers and the economy.”
Adding to this, ARENA opened new Programs and funding rounds in 2023-24:
- Hydrogen Headstart Round 1 – $2 billion in funding
- Solar Sunshot – $1 billion in funding
- Battery Breakthrough Initiative – $500 million in funding
- Powering the Regions – Industrial Transformation Stream Round 1 – $150 million ($400 million total across the program)
- Regional Microgrids Program (including the First Nations Community Microgrids Stream) – $125 million
- Sustainable Aviation Fuel Funding Initiative – $30 million
- National Industrial Transformation Program – $40 million
ARENA was also announced as the delivery agency for Hydrogen Headstart Round 2 – $2 billion and the Future Made in Australia Innovation fund – $1.5 billion.
With a strong pipeline of funding for renewable energy projects available and our continued support for new and innovative technologies, ARENA is perfectly positioned to continue to support Australia’s energy transition and help meet our climate goals.
Established by the Australian Government on July 1st, 2012, ARENA has supported 735 projects with $2.61 billion in grant funding, unlocking a total investment of almost $12.63 billion in Australia’s renewable energy industry.
For more information on ARENA’s funding, read the 2023-24 Annual Report.
READ the latest news shaping the hydrogen market at Hydrogen Central
ARENA Impact clear in 2023-24 with almost $400 million to renewable energy projects – Hydrogen and Iron & Steel Funding Rounds, source
Australia’s Hysata joins forces with POSCO to enhance green hydrogen technology
FILE PHOTO: The logo of POSCO is seen at the company’s headquarters in Seoul, South Korea, July 20, 2016. REUTERS/Kim Hong-Ji/File Photo
13 Dec 2024
Australian green hydrogen producer Hysata on Friday signed agreements with South Korean steelmaker POSCO and its POSCO Eco & Challenge unit to advance its electrolyser technology for green hydrogen production, the companies said in a joint announcement.
These agreements underline the growing collaboration between the global steel industry and the green hydrogen sector, with steelmakers increasingly turning to hydrogen as a clean energy source to reduce their carbon emissions.
Under the joint development agreements, the firms will combine their technical knowledge to develop materials and systems for electrolysers and conduct activities to speed up the commercialisation of Hysata’s technology, they said. The agreements follow earlier investments in Hysata’s Series B funding round by the two companies, the firms added.
NH3 Clean Energy and Australian Gas Infrastructure Group Sign Memorandum of Understanding on CO2 Transportation for WAH2 Project
NH3 Clean Energy Limited (‘NH3’ or ‘the Company’) (formerly Hexagon Energy Materials Limited) is delighted to advise that it has signed a non-binding Memorandum of Understanding (‘MOU’) with Australian Gas Infrastructure Operations Pty Ltd (‘AGIO’), a subsidiary of Australian Gas Infrastructure Group (‘AGIG’), regarding the construction of pipelines for the transportation of CO2 from the Company’s WAH2 Clean Ammonia Project.
The MOU documents will support collaboration between NH3 and AGIG to further explore the development and funding of a CO2 transmission pipeline (‘Pipeline’) from NH3’s WAH2 clean ammonia Project to either of two third-party sequestration projects nearby. The pipeline would be built, owned, and operated by AGIO.
The MOU contemplates concurrent Front-End Engineering and Design (FEED) studies on the WAH2 Project and the Pipeline in 2025 to support the negotiation and execution of a Definitive CO2 Transportation Agreement prior to the WAH2 Project and Pipeline achieving their respective Final Investment Decisions.
NH3 expects to enter additional memoranda of understanding over the coming weeks and months with other parties for other aspects of the WAH2 Project including CO2 sequestration, additional gas supply, infrastructure, and offtake. These will support the WAH2 Project’s entry into FEED which is planned to commence at the end of 2024.
NH3 Clean Energy’s Chairman Charles Whitfield commented: “We are delighted to have entered into an MOU with Australian Gas Infrastructure Group (‘AGIG’) to develop agreements around CO2 transportation. It has always been part of the WAH2 strategy to partner with ‘best in class’ service and input providers to benefit from their expertise and the efficiency that they bring to the WAH2 Project. Having AGIG as the builder, owner, and operator of CO2 pipeline infrastructure would offer NH3 opportunities to improve the economics and timeline of our project. This MOU, on the heels of the recent gas supply announcement with Chevron, demonstrates the acceleration of project tempo as these key partnership agreements fall into place.”
AGIG CEO Craig de Laine commented: “AGIG believes that a range of energy sources and technologies will be needed to reach net zero as quickly and efficiently as possible, and we see significant potential for Carbon Capture and Storage to contribute to the energy transition and help our customers to decarbonize. We are excited to work with NH3 Clean Energy on this project, which will be key to establishing the Pilbara Carbon Capture and Storage hub and providing a platform for hard-to-abate industry in the region to reduce carbon emissions.”
About the WAH2 Project
The WAH2 project is NH3’s flagship project to supply low-emissions ammonia to the decarbonizing powerhouse economies of the Asia Pacific, including Japan and South Korea, as well as being a source of decarbonized “bunker” fuel for powering bulk carriers carrying iron ore from Australia to Asia. The project is well placed as Asia’s energy transition drives an increasing demand for low emissions energy.
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Plan to turn Latrobe Valley’s coal into hydrogen hits major roadblock
A multi-billion dollar bid to convert coal from the Latrobe Valley into hydrogen has hit a major roadblock after an international partner walked away from a trial in the region.
Japanese media reported on Friday that Kawasaki Heavy Industries had withdrawn from the trial to develop a hydrogen network.
The original plan was to establish an international supply chain to produce hydrogen from the valley’s coal and use commercially unproven CO2 capture and storage technology to sequester carbon in the Bass Strait
Brown coal from the valley would have been extracted and turned into hydrogen, which would then be piped more than 150 kilometres from Gippsland to the Port of Hastings before being shipped to Japan.
The project received $50 million each from the Victorian and federal governments, while also receiving $2.35 billion from the Japanese government.
But reports from Japan indicate Kawasaki has backed out of the plan due to potential difficulties procuring hydrogen within the 2030 deadline.
“The completion of the demonstration by 2030, which was originally planned, was an absolute condition for ensuring competitiveness,” reported the Nekkei.
“The company will now look to procure hydrogen from within Japan and hydrogen carriers will also be reduced in size as the company steers towards ‘a real solution’.
In a statement, Kawasaki Heavy Industries confirmed the commercial demonstration phase of the project would occur in Japan due to time and cost pressures.
Kawasaki Hydrogen Project Group executive Yasushi Yoshino said the company was committed to the Gippsland town.
“The change to phase one of the project does not impact Kawasaki’s commitment to a commercial scale project in the Latrobe Valley and Kawasaki remains committed to the Latrobe Valley and Victoria,” he said.
New fuel mix fanfare
The project was announced in 2018 and promised 400 jobs if the trial was successful.
The prospect of converting coal to hydrogen was met with much fanfare, with a world-first hydrogen tanker arriving in January of 2022 to test potential for exporting the fuel source to Japan.
Then prime minister Malcolm Turnbull visited the Latrobe Valley in 2018 to state the importance of hydrogen in the country’s energy mix.
“It is critically important we invest in the energy sources of the future, and we affect the transition from old forms of [power] generation to new forms of generation, and we do this seamlessly,” he said.
Kawasaki was one of a consortium of companies behind the project, including Japanese Energy giant J-Power and AGL, which owns Loy Yang.
The project was touted as being an important part of the energy source for the future because it burned clean when consumed.
However environment groups maintained criticism of the project throughout its trial because of the carbon emissions released during production.
Another empty promise
Wendy Farmer is a local organiser for the community group Voices of the Valley and Friends of the Earth.
She said she was unsurprised to hear the news that Kawasaki had withdrawn.
“I never thought it was a viable option,” she said.
“Why would you make hydrogen from coal when you can actually do it from renewable energy with a lot less pollution and emissions involved?”
Wendy Farmer welcomed the federal government’s Net Zero Authority. (Supplied: Wendy Farmer)
She said it was always doubtful that it would go past the investigation stage.
“It just felt like another money grab from Latrobe Valley,” Ms Farmer said.
She said both levels of government were better served investing in renewable energy projects.
“It just seems like why are we investing into these, ‘Let’s test this out and see if it works’ [projects] when we have technologies that work and we should have been putting money into that,” she said.
“It’s another empty promise for the Gippsland region.”
The consortium behind HESC has stated it would not commercialise the project unless it was able to capture and store its emissions.
The Victorian government has simultaneously been looking into the Carbon Net project, which was to investigate the feasibility of capturing emissions from the project and store it in disused gas and oil wells in the Bass Strait.
The futures of both projects were uncertain.
‘It was always in doubt,” Ms Farmer said.
“‘Nowhere in the world have they actually done the carbon capture and storage they were promoting in this idea.”
Hope remains
Latrobe City Council Mayor Dale Harriman said the most recent development did not mark the end of the HESC project.
He said the council was yet to receive confirmation from the HESC consortium on its current status, but believed there was still sufficient support for the project.
Dale Harriman says the project still has support. (Supplied)
“You look at the number of major companies that are still involved in this project as consortium members, and there’s very significant players involved, and from what we’ve heard they’re still very keen for this project to go ahead,” he said.
“So we don’t see this as a major issue or a death knell for the project.”
Cr Harriman said the state government needed to provide surety of coal supply for HESC to ensure other partners did not walk from the project.
“The concerning part from us is that there has been a continual lack of support from the state government that is behind a lot of the nervousness behind the HESC scheme,” he said.
“The sticking point is the guarantee of coal.
“We are looking at how we can get the state government to come out and guarantee that supply of coal that they need.”
A spokesperson for Energy Minister Chris Bowen said the government had honoured the previous government’s commitment to their Japanese partners on the HESC project and that the withdrawal was a commercial decision by the Japanese consortium.
The state government has been contacted for comment.
Link: https://www.abc.net.au/news/2024-12-10/coal-hydrogen-hesc-latrobe-valley-japan-kawasaki/104375024
Australia’s $1.7 billion opportunity in hydrogen electrolyser manufacturing
A new report from Australia’s national science agency, CSIRO, has projected Australia’s hydrogen electrolyser manufacturing (HEM) sector could generate $1.7 billion in revenue and create nearly 4000 jobs by 2050.
The Hydrogen Electrolyser Manufacturing report highlighted a significant opportunity in manufacturing devices that generate hydrogen from water using electricity, positioning Australia as a key player in the global transition to renewable hydrogen production.
The research underscored Australia’s strong starting position, with an emerging cohort of Australian electrolyser manufacturers translating innovations from the country’s research sector, and a significant domestic pipeline of projects seeking to produce renewable hydrogen.
Vivek Srinivasan, CSIRO Futures Energy Lead, emphasised the importance of timely action to capitalise on this.
“Building an electrolyser manufacturing sector isn’t just about meeting immediate demand; it’s an opportunity to develop an industry that adds long-term value to our economy and strengthens our energy security through building sovereign manufacturing capability,” Mr Srinivasan said.
“By leveraging Australia’s renewable energy advantages and innovative R&D capabilities, Australia can become a player in this rapidly emerging sector – but we must act quickly while the opportunity is available to us.”
CSIRO’s report recommended a coordinated approach across research, industry, and government to realise the full potential of Australia’s HEM sector.
Key strategies include:
- Aggregated demand: Aligning with adjacent clean energy manufacturing opportunities to facilitate strategic investments and decisions.
- Sovereign capabilities and international partnerships: Exploring international partnerships to preserve domestic value creation.
- Strategic manufacturing hubs: Identifying and promoting manufacturing hubs that leverage Australia’s renewable electricity advantages, while managing inflexible costs such as labour and logistics.
In addition to electrolyser manufacturing, the report also identified significant potential for growth in electrolyser installation services, with projections of an additional $1.2 billion in revenue and 1,000 jobs by 2050.
Dr Patrick Hartley, Leader of CSIRO’s Hydrogen Industry Mission, said there is a window of opportunity for Australia to seize a piece of the global electrolyser market.
“Australia has a significant pipeline of renewable hydrogen projects, with specific electrolyser procurement and maintenance needs,” Dr Hartley said.
“If we can use our natural and technical advantages to develop a geographically aligned supply chain, Australia could reap the economic and environmental benefits of owning a significant portion of the electrolyser market.”
The $2 Incentive That Could Put Australia Ahead in Green Hydrogen
Future Made in Australia Bill 2024 Aims to Fast Track Green Hydrogen Industry
Australia is taking a significant step toward solidifying its position in the global renewable energy market with the introduction of the Future Made in Australia (Production Tax Credit and Other Measures) Bill 2024. The bill, announced by the Minister for Climate Change and Energy, Chris Bowen, outlines a clear framework for incentivizing renewable hydrogen production and supporting critical minerals industries. With a focus on harnessing economic opportunities and achieving environmental goals, this legislation could mark a turning point for Australia’s energy sector and its role in the international push for sustainable energy solutions.
Overview of the Bill
The Future Made in Australia Bill introduces a Hydrogen Production Tax Incentive that offers A$2/kg ($1.30/kg) for renewable hydrogen produced from 2027-28 to 2039-40, with eligible projects benefiting for up to 10 years. Aimed at attracting private sector investment, this incentive ties into Australia’s broader economic strategy of achieving net zero emissions while driving industrial opportunities
According to Minister Bowen, the incentive is a response to the global transition to net-zero technologies, aimed at creating a more resilient and diversified economy. Projects eligible for the tax credit will need to be operational before accessing the incentive, ensuring that tangible results are achieved rather than speculative proposals. Additional guidelines and eligibility specifics will be set by the Treasurer following stakeholder consultation.
Beyond hydrogen production, the bill expresses a commitment to supporting industries tied to critical minerals, such as those fundamental to manufacturing wind turbines, solar panels, and electric vehicles. This dual approach keeps Australia at the forefront of developing clean energy infrastructure
Recent Developments in Australia’s Hydrogen Projects
Australia has made notable progress on hydrogen technology in the past six months. Key developments include:
- BP Low Carbon Australia’s H2Kwinana Project: This Western Australian initiative will utilize federal funding for engineering works as part of an effort to create a scalable hydrogen hub.
- Stanwell’s CQ-H2 Project in Queensland: Positioned as a critical contributor to industrial-scale hydrogen production in Australia.
- National Hydrogen Infrastructure Planning: Several states have advanced infrastructure programs designed to integrate hydrogen into existing energy systems.
- Expansion of Small-Scale Green Hydrogen Trials: Multiple pilot projects across Australian regions are refining production methods and supply chain efficiencies.
- Collaboration on Export Potential: Partnerships with Asian nations like Japan and South Korea deepen Australia’s role as a preferred supplier of hydrogen solutions.
These projects embody Australia’s commitment to becoming a leader in renewable hydrogen technology, aligning with global trends in decarbonization.
Opportunities for Hydrogen Companies
The Hydrogen Production Tax Incentive establishes a more predictable and secure environment for renewable energy developers looking to expand in Australia. For hydrogen companies, this translates to:
- Financial Clarity: The A$2/kg incentive removes significant barriers to entry by directly reducing production costs.
- Long-Term Viability: A guaranteed 10-year eligibility per project allows companies to plan large-scale developments with reduced financial risks.
- Policy Stability: The bill signals Australia’s long-term dedication to hydrogen, which can encourage foreign and domestic investors.
With the legislation providing clarity and certainty, companies can confidently move forward with ambitious projects, knowing that the government intends to actively back the renewable hydrogen sector.
Impact on the Industry
The introduction of the tax incentive will reshape Australia’s renewable energy sector in several ways. First, it enhances Australia’s competitiveness in the global hydrogen market, where cost remains a major hurdle. With production costs partially offset, Australian hydrogen could become more affordable compared to alternatives from Europe or North America.
Additionally, this legislation levels the playing field for emerging hydrogen businesses by reducing upfront financial pressures. For established companies, it creates incentives to scale up existing operations. This synergy between new entrants and industry veterans could accelerate the pace of innovation.
On a national scale, the bill helps align the hydrogen industry with Australia’s broader climate goals by integrating renewable energy with the nation’s heavy industries. Supporting facilities like wind turbine and EV battery manufacturing also positions the country as a comprehensive supplier of green technologies.
Internationally, Australia’s competitive edge will be reinforced as it capitalizes on its vast renewable resources, such as solar and wind energy, to fuel hydrogen production. Improved affordability of Australian hydrogen could increase export opportunities to markets such as Japan, South Korea, and Europe, all of which are looking to enhance their hydrogen imports.
Conclusion
The Future Made in Australia Bill presents a unique opportunity for Australia to demonstrate global leadership in renewable hydrogen production. By incentivizing innovation, removing entry barriers, and fostering collaboration across industries, this legislation paves the way for Australia to be a competitive and sustainable energy exporter.
For now, this technology holds promise not just for export markets but also domestically. Hydrogen could play a vital role in decarbonizing industries like transportation, heavy production, and energy storage. With projects scheduled to become operational in the coming years, the focus should remain on further lowering costs, ensuring technology accessibility, and integrating hydrogen applications into existing systems.
Hysata and POSCO partner to advance green hydrogen energy
Electrolyser maker Hysata has entered into a partnership with POSCO to accelerate the development of Hysata’s high-efficiency hydrogen electrolyser technology.
It builds on the strategic partnership established between the two earlier in the year.
Under the terms of the agreement, both companies will contribute technical knowledge and capability to jointly develop materials and systems for high-efficiency green hydrogen electrolysers.
“This is an important partnership that leverages Hysata’s electrolysis cell technology and POSCO’s extensive expertise in materials, system development, engineering and construction of innovative technologies,” Hysata CEO Paul Barrett said.
“Through this collaboration we aim to accelerate the development of Hysata’s technology. Our 41.5 kWh/kg H2 system efficiency will drive down the levelised cost of hydrogen and transform the economics of green hydrogen production.”
POSCO New Experience of Technology Hub, Head of Clean Hydrogen Research Centre, Dr. Juwoung Yoon, said it’s essential to support a successful transition to low-carbon production systems.
“This joint development effort is poised to accelerate global green hydrogen advancements, contributing to decarbonising hard-to-bate sectors, including steelmaking, he said.
Link: https://www.aumanufacturing.com.au/hysata-and-posco-partner-to-advance-green-hydrogen-energy
Proposed $6.7 billion Hydrogen Production Tax Incentive for renewable hydrogen
Australia is pushing ahead with renewable hydrogen incentives. The federal government recently announced a Hydrogen Production Tax Incentive (HPTI), which will become available from 1 July 2027. It intends to provide an uncapped refundable tax offset worth an estimated $6.7 billion over ten years.
The Future Made in Australia (Production Tax Credits and Other Measures) Bill 2024 (‘the bill’) was recently introduced into Parliament (and previously announced in the 2024-25 budget). Schedule 1 to the bill seeks to establish a new tax offset in respect of eligible hydrogen production.
By moving to provide certainty now, Australia is seeking to leverage its resources industry expertise, accelerate the development of renewable energy solutions, and attract further investment in the move to net zero and towards the government’s self-announced push to become a ‘renewable energy superpower’.
The development of a renewable hydrogen industry is considered to be a significant economic opportunity for Australia for both export and domestic use. This is through value-added manufacturing of green ammonia and fertilisers, iron and alumina.
General overview of the HPTI
The HPTI is intended to provide an incentive for corporations (but not trusts or partnerships) to commence medium to large scale production of renewable hydrogen in Australia. The HPTI is a refundable tax offset worth $2 for each kilogram of renewable hydrogen produced by eligible projects that reached a final investment decision before 1 July 2030.
The HPTI will apply to hydrogen produced from income years starting on or after 1 July 2027 and ending before 1 July 2040, and be available for up to 10 years per project. Taxpayers will need to choose the commencement date for their offset period by providing notice to the ATO in the approved form.
The HPTI will be jointly administered by the ATO and the Clean Energy Regulator (CER). The CER will certify projects with the ATO administering the HPTI offset. The CER and ATO will be able to share information to facilitate this joint administration.
Eligibility requirements
Broadly, to be eligible for the HPTI offset a taxpayer must:
- Be a constitutional corporation (a trading, financial or foreign corporation, or otherwise a body corporate incorporated in a Territory – trusts and partnerships will not be eligible).
- Hold a production profile under which eligible hydrogen was produced, which allows it to create a product guarantee of origin (PGO) certificate in respect of the hydrogen. Broadly, this requires that the hydrogen is:
- certified by the CER;
produced in Australia;
produced within a 10 year period and in an income year commencing on or after 1 July 2027 and before 1 July 2040;
produced at a medium to large scale facility (equivalent of at least an electrolyser with 10MW nameplate capacity);
not produced through an excluded process (this is intended to exclude hydrogen produced from fossil fuels);[1]
produced under a project where the final investment decision was made before 1 July 2030 (where unqualified board approval to proceed was provided before this date); and
- certified by the CER;
- Be subject to tax in Australia in relation to income from activities in which the PGO certificate was created. (The taxpayer cannot be an exempt entity and there must be a connection between the hydrogen production and Australian assessable income derived by the taxpayer. However, the corporation need not be in an overall taxable position for the year).
In addition, the corporation must have complied with the community benefit principles for the HPTI made by the Treasurer.
An entity may become ineligible, or their entitlements to the HPTI may be reduced, where they do not comply with the community benefit principles for the HPTI.
The community benefit principles for the HPTI have not yet been determined. Whilst not specific to the HPTI offset, broader community benefit principles are contained in the Future Made in Australia Act 2024. In making the community benefit principles for the HPTI, the Treasurer must have regard to these broader principles. They are:[2]
- promoting safe and secure jobs that are well paid and have good conditions;
- developing more skilled and inclusive workforces;
- engaging collaboratively with and achieving positive outcomes for local communities (including First Nations communities);
- supporting First Nations communities and traditional owners;
- strengthening domestic industrial capabilities, including through stronger local supply chains; and
- demonstrating transparency and compliance in relation to the management of tax affairs.
The government envisages that the community benefit principles for the HPTI may also require entities to arrange for their activities to be certified by expert bodies, with the ATO confirming that certification has in fact occurred.
Finally, a correction notice must not be in force for the PGO certificate (i.e. if the CER is reviewing key matters related to the hydrogen’s eligibility, then the HPTI cannot be claimed).
Key considerations ahead of the HPTI’s introduction
- There are specific requirements around the legal form of the entity used to claim the HPTI. The relevant entity needs to be a constitutional corporation to be eligible. Trusts and partnerships will not be eligible. This requirement could be satisfied where, for example, the relevant corporation both produces and sells the hydrogen (to be a trading corporation).
- There is currently no cap on the amount that a corporation could receive under the HPTI.
- The HPTI will complement the Hydrogen Headstart program (which is a $4 billion revenue support program for large-scale renewable hydrogen projects). However, taxpayers who receive government support under both the HPTI and the Hydrogen Headstart program will have their payments under the Headstart program proportionally reduced.
- The ATO will need to confirm certification with taxpayers, the CER and potentially further expert bodies. We anticipate there may be similar issues to tax audits under the jointly administered ATO/AusIndustry R&D tax offset rules, where the ATO may seek to question eligibility which has been provided by a separate body.
- The CER may retrospectively revoke a production profile (including from the original start date) and must notify the ATO if it revokes a production profile. Where certification for a production profile has been revoked by the CER, or if a correction notice is issued or revoked by the CER, then the ATO will have four years from the date of that revocation or correction to amend the taxpayer’s assessments (where this would otherwise be outside of the taxpayer’s period of review).
- The head entity of an income tax consolidated group will be able to claim the HPTI in respect of a subsidiary’s entitlement. That subsidiary must still be a constitutional corporation and satisfy the other requirements for the HPTI.
- The HPTI will be a tax benefit to which Part IVA (Australia’s tax general anti avoidance rule) can apply.
- A decision by the CER will be a reviewable decision by the Administrative Review Tribunal, as well as through judicial review.
- Alongside introducing the HPTI, the bill will tighten the technical application of the shortfall interest charge (SIC) so that SIC will apply in respect of receiving a greater net refund from overclaiming refundable tax offsets. Currently, SIC applies where offsets are used to decrease tax payable (without obtaining a net refund) but does not apply where a taxpayer overclaims refundable tax offsets to receive a greater net refund. This change will also apply to situations beyond the HPTI rules, such as where a taxpayer obtains a net refund from overclaiming refundable R&D tax offsets or franking credit tax offsets.
- The bill was referred to the Senate Economics Legislation Committee, which is due to provide a report by 30 January 2025.
While the introduction of the HPTI is a step in the right direction for the development of a hydrogen industry, there are a number of aspects of the scheme that require further detailed consideration. We expect corporations will need to work closely with the ATO and CER to get comfort that they can access the tax offset over the life of a project.
Japan cuts off Australian hydrogen supply – reports
Two large Japanese corporations have withdrawn their support for Australian hydrogen projects within days of each other – amid continued investment into fuel-cell cars by Toyota.
A multibillion-dollar deal to supply Japan with hydrogen appears to be in tatters.
First reported by The Age, a trial to supply Kawasaki Heavy Industries with ‘brown hydrogen’ – created from coal using converted powerplants – has been abandoned, according to Japanese news outlet Nikkei.
The plan involved converting brown coal to liquefied hydrogen in Victoria’s Gippsland region, to be transported via specially-built ships out of Hastings – providing Japan’s industry with a steady supply of clean-burning hydrogen.
Japanese car giant Toyota has been one of a handful of manufacturers pushing for hydrogen to be adopted as an alternative fuel – either replacing petrol with internal-combustion engines, or used in conjunction with fuel-cells to convert hydrogen to electricity.
However, it now appears Japan’s Kawasaki Heavy Industries has walked away from the deal with Victoria, with local media claiming it had become “difficult to produce hydrogen in Australia within the deadline”.
Link: https://hydrogen-central.com/japan-cuts-off-australian-hydrogen-supply-reports-drive/
Xodus study reveals huge UK opportunity for hydrogen development in Australia
A new report from global energy consultancy Xodus has shed light on the opportunity for hydrogen development in Australia – and the chance for UK companies to export their expertise.
Courtesy of Xodus.
As of 2024, Australia stands out as a leader in the international landscape for hydrogen production, with ambitions to be a significant force in global hydrogen by 2030, both for export and the decarbonisation of domestic industries.
According to the study, this presents a major opportunity for international companies to export their products and services to the Australian market, and UK businesses are apparently in a prime position to capitalise on this.
To improve understanding of the synergies between the two countries, the UK Government commissioned Xodus to undertake a high-level overview of existing domestic capabilities in Australia that support the low carbon hydrogen sector.
As part of this supply chain readiness assessment, Xodus explored potential gaps where UK supply chain companies could provide support, and any barriers which could slow the roll out or impede participation from overseas.
While the study found that the hydrogen sector in both countries is in its formative stages, UK companies are at the forefront of research and the development technology.
Accordingly, if Australia is to fully realise its hydrogen potential, collaboration between the UK government, its supply chain, and Australian counterparts is essential to provide the capacity and skills needed to realise its significant hydrogen export ambitions, as well as serving its domestic needs, the study states. Moreover, by working together, both nations can drive innovation, investment, and sustainable growth in the hydrogen sector.
“Delivering a global energy transition that is both effective and prosperous, requires collaboration at all levels of the industry, from supply chain to government” said Simon Allison, Vice President APAC at Xodus. “Our Australian Hydrogen Market study reinforces the wider benefits that can be realised through joined up thinking and by sharing expertise across borders. Australia is emerging as a key force in the global hydrogen market, holding the world’s second-largest production capacity in active development. With numerous potential projects and growth opportunities, the country is set for significant expansion beyond 2030, with an expected annual market revenue of $24 billion (£13 billion). Clearly hydrogen is a massive growth opportunity for Australia, but it will not be able to fully grasp this potential without input from overseas and there is a real opening for UK companies to leverage their strength and capture a share of this market.”
Despite the gaps in Australia’s hydrogen supply chain, it is not a given that UK companies will be able to capture the work, with Xodus highlighting four major barriers to entry.
Among the most significant for UK developers detailed in the study are the current regulatory and policy uncertainty, specifically a lack of a clear position on the minimum requirement for renewable energy to support hydrogen production and the certification process.
Other barriers include revenue certainty due to limited Australian production-based subsidies, the absence of a meaningful carbon policy that establishes a higher tax on emissions, and the domestic fiscal regime.
Australia’s geographical distance, lack of existing infrastructure, extreme weather conditions, and unique environmental conditions were also flagged by Xodus as potential hurdles.
“Challenges are part and parcel of the energy industry, but companies should bear in mind what can be gained by overcoming them” added Mark Elliot, Commercial Lead for Hydrogen at Xodus. “Australia presents substantial opportunities for UK companies prepared to invest time in understanding the regulatory landscape and strategically positioning themselves to enter the market. The UK hydrogen industry is highly developed, with UK companies leading in hydrogen technology research and development. This expertise positions UK firms advantageously to export their products and services to expanding hydrogen markets.”
Based on desktop analysis of existing suppliers and opportunities in Australia, Xodus delivered a Red, Amber, Green (RAG) assessment to quantify and highlight the opportunities for UK businesses.
As a result, four main prospects in Australia for UK companies were identified: hydrogen electrolysis manufacturing, hydrogen fuelled gas turbines, hydrogen fuel cells and transportation.
Raystech inks exclusive distributor deal with Chinese solar module giant Longi
Australian solar panel distributor Raystech has signed an exclusive deal with Chinese solar module giant Longi to distribute their products in Australia in a partnership set to ride the wave of Australia’s ongoing growth in rooftop installations.
Queensland-headquartered solar panel distributor Raystech Group Australia has announced a partnership with China-headquartered solar solutions company Longi Green Energy Technology (Longi) to exclusively distribute their solar modules in Australia.
The partnership will debut Longi’s HPBC (hybrid passivated back contact) 2.0 modules dual glass modules, installed for the first time in December 2024 at a 2.2 MW commercial development in China, where winter temperatures drop as low as -300C.
Longi says that HPBC 2.0 modules outperform TOPCon modules in resistance to UV, damp heat, and thermal cycling, feature a temperature coefficient of -0.26% per degree Celsius, improving by 0.03% per degree Celsius over TOPCon, and ensure durability and reliable performance.
It claims mass production cell efficiency exceeds 26.6%, reflecting a 1.5% improvement in the two years since its first generation HPBC technology was first launched.
“Longi has always been at the forefront of technological advancements and this partnership exemplifies the power of collaboration, bringing our shared vision for a sustainable energy future to life,” Raystech Chairman Mark Miao said.
L-R front: Raystech Chairman Mark Miao and Longi Solar Australia Managing Director Daniel Lin during the agreement signing ceremony in China on 25 November 2024. (Image: Longi)
The agreement marks a shift in Longi’s distribution strategy for the residential and small commercial and industrial sectors, but Longi says it will continue to support current and new customers with sales, marketing, product and warranty claims support managed locally by its Sydney-based Australian team.
Longi Chairman Zhong Baoshen said the agreement reflects the company’s commitment to delivering consistent quality and service to the Australian market.
“Together, we will set new benchmarks for innovation, reliability, and customer satisfaction,” Baoshen said.
Raystech has distribution warehouses South Australia (SA), Tasmania, Victoria, Perth, Sydney, Auckland, and three in Queensland (Sunshine Coast, Townsville and Brisbane), enabling national market reach and access to products and services. It also has a warehouse in Auckland, New Zealand.
Massive 70GW Renewable Energy Hub Proposed in Western Australia Aims to Be Global Green Hydrogen Leader
- A consortium including CWP Global, InterContinental Energy, and Mirning Green Energy has submitted a proposal for a 70 GW renewable energy and green hydrogen production facility in Western Australia, marking a major step toward large-scale renewable energy production.
In an ambitious push towards renewable energy dominance, a consortium comprising CWP Global, InterContinental Energy, and Mirning Green Energy has lodged an application with the Environmental Protection Authority (EPA) of Western Australia for a sprawling renewable energy hub. The proposed Western Green Energy Hub (WGEH) is poised to transform the energy landscape of the region and position Australia as a leader in global green hydrogen production.
Project Overview
The WGEH is set to be one of the largest renewable energy projects worldwide, encompassing a staggering 2.9 million hectares in the south-east of Western Australia. With an estimated cost of AUD 100 billion (US$ 65 billion), the project plansto roll out in seven hosted by SA-H2H™ Hydrogen Technology Cluster. The event showcased developments phases over a 30-year construction period. It aims to commence construction by 2029, with the first production phase expected in 2032.
Technological Scale and Scope
The project will feature up to 3,000 wind turbines with power ratings of up to 20 MW each, alongside 35 solar PV plants comprising 6 million solar panels. This extensive array of renewable energy sources is intended to power centrally located electrolysers that will produce approximately 330 kt/year of green hydrogen in its initial phase.
When fully operational, the hub is expected to generate over 200 TWh of renewable energy annually, potentially matching Australia’s current total energy generation. The facility aims to produce up to 3.5 Mt/year of green hydrogen for use both domestically and internationally, along with green ammonia intended primarily for export.
Strategic Collaborations and Feasibility
The project developers recently enhanced their strategic position by signing a collaboration agreement with Korea Electric Power Corporation (KEPCO). This partnership underscores the project’s international appeal and the global interest in developing sustainable energy solutions. The agreement includes conducting a comprehensive feasibility study to refine the development plans for the initial stages of the project.
Infrastructure and Community Impact
Beyond its primary production capabilities, the project will also develop substantial auxiliary facilities, including data centers, workshops, and a workers’ village designed to accommodate up to 8,000 residents. Coastal and offshore components include a marine offloading facility, a desalination plant, and pipelines for ammonia or other vectors for export.
Environmental and Economic Implications
The WGEH not only represents a significant technological advancement in renewable energy but also underscores a major economic development for the region. By harnessing the vast renewable resources of Western Australia, the project aims to contribute significantly to the global reduction of carbon emissions, aligning with international goals for a sustainable future.
Ricardo – Accelerating Hydrogen Mobility Workshop
On November 28, 2024, industry leaders, innovators, and policy makers gathered at the Mantra Tonsley in Adelaide for the Accelerating Hydrogen Mobility Workshop, in hydrogen-powered vehicles and strategies to drive hydrogen mobility forward in South Australia.
Ricardo was proud to be part of this workshop, with Jorge Martin Gistau, Manager of Sustainable Transport ANZ, representing our team.
Networking and Insights
The workshop began with a networking lunch, providing attendees the opportunity to connect with key players in the hydrogen vehicle space, including manufacturers, government representatives, and other stakeholders.
Nicholas Mumford, Co-Founder of SA-H2H™, set the stage with a welcome and overview of the day’s agenda. A series of presentations followed, offering deep dives into advancements by industry leaders:
- Clint Butler, National Sales Manager at Pure Hydrogen, highlighted the company’s latest hydrogen vehicle innovations.
- Neil Wang, CEO of Foton Mobility, presented on the practical applications of hydrogen technology in commercial vehicles.
- Lora Miller, On-Highway Product Manager Asia Pacific at Cummins, shared insights into the challenges and opportunities in scaling hydrogen technology.
- Andrew Willis, Manager of Carbon Policy at Toyota Australia, discussed Toyota’s hydrogen strategy and upcoming developments in sustainable mobility.
Ricardo’s Contribution
Following the break, Jorge Martin Gistau took the stage to present the SA-H2H Hydrogen Retrofit Project, a key initiative to retrofit existing vehicles with hydrogen power. Jorge outlined Ricardo’s approach to sustainable transport, emphasizing the need for feasible and realistic solutions that address the unique demands of Australian industries. The Hydrogen Retrofit Project represents a unique opportunity to transition existing assets to net zero traction systems while developing a local industry in South Australia.
Interactive Workshop and Panel
The workshop session focused on the SA Hydrogen Refuelling Network Strategy, led by Nicholas Mumford, where participants collaborated on strategies to expand refuelling infrastructure to support hydrogen vehicle adoption.
The event concluded with a dynamic panel discussion, “How do we accelerate the use of hydrogen vehicles in SA?“, facilitated by Nicholas Mumford. Jorge joined industry and government representatives to explore actionable pathways for integrating hydrogen vehicles into South Australia’s transport ecosystem.
Some of the topics discussed included:
- Market barriers to growing the hydrogen mobility sector in Australia.
- Best fits for hydrogen solutions: passenger vs. heavy vehicles.
- Opportunities for hydrogen retrofit solutions in Australia to 2030.
- Trends in the global cost trajectory of OEM hydrogen vehicles.
- Lessons from international successes and challenges in hydrogen deployment.
A Vision for the Future
The Accelerating Hydrogen Mobility Workshop was a powerful platform for exchanging ideas, fostering collaboration, and setting the groundwork for a hydrogen-powered future. Ricardo is proud to support South Australia’s hydrogen initiatives, contributing our expertise to drive innovation and sustainability in the region.
Stay tuned for more updates on Ricardo’s hydrogen projects and our continued involvement in shaping a cleaner, greener future.
Australia Passes Guarantee of Origin Legislation, Boosting Green Hydrogen and Investor Confidence
The Australian Government has passed the Future Made in Australia (Guarantee of Origin) Bill through Parliament.
The Guarantee of Origin (GO) scheme is a voluntary program for industry. It is designed to certify renewable electricity and track and verify the emissions of low-emissions products, such as hydrogen.
It will support the development of Australia’s green industries. It will do this by certifying renewable electricity and the emissions associated with products.
This will help Australian producers remain competitive in new and emerging domestic and global markets, by accounting for the emissions embedded in their products.
This will help Australian producers remain competitive in new and emerging domestic and global markets by accounting for and accurately presenting the low-emissions reality of their products.
This legislation builds on and complements important government initiatives, including the Capacity Investment Scheme and reforms to the Safeguard Mechanism, and it will be the basis on which the Hydrogen Production Tax Incentive can be sought.
It will provide Australian businesses and investors with the regulatory certainty to support and encourage investment through a high-integrity certificate scheme that makes sure that renewable energy and decarbonised products can be properly valued.Comment attributable to Minister Bowen:
“We are committed to launching the Guarantee of Origin scheme in 2025 to provide Australian industry with the certainty it needs to make the most of Australia’s distinctive competitive advantages as we make the clean energy transition.
“The GO Scheme is a key element of the energy transition toolbox that our government is putting to work to drive investment as we strive to become a renewable energy superpower.”
Comment attributable to Assistant Minister Wilson:
“Today’s legislation of the Guarantee of Origin scheme is a crucial component of the government’s $22.7 billion Future Made in Australia agenda.
“The scheme will certify Australian low-emissions products and spur investment in clean energy industries.
“For the Product GO, we’re beginning with hydrogen but will expand to cover other important manufacturing opportunities like those represented by green metals and low-carbon liquid fuels.”
Beyond the hype: hydrogen gets serious
Hydrogen, touted as key to the energy transition, has faced many hype cycles and is yet to deliver at scale. “Hydrogen is the fuel of the future…and always will be,” goes the industry joke. But hydrogen is now getting serious.
Low-carbon projects are finding a pathway to final investment decisions (FIDs) through careful renewable power procurement, matching hydrogen production with anchor offtake agreements and state support. At the same time, the outlines of a global market for low-carbon hydrogen and its derivatives are taking shape, as early movers sign supply contracts and conduct trial shipments.
This all comes despite policy uncertainty, cost inflation and difficulty securing competitive offtake agreements. For sure, the nascent sector still faces enormous challenges. Just 7% of announced global clean hydrogen projects have taken positive FIDs. Electrolyzer costs have risen 20%-45% since 2021, with reductions of only 15%-30% expected by 2030, according to an analysis from S&P Global Commodity Insights.
But there are bright spots and concrete progress is being made around the globe, albeit slower than originally envisaged and slower than developers would like to see. Incumbent producers, companies tapping subsidies and industries where the end-product cost increase is small are making the first moves.
US leads with blue hydrogen
Generally, blue hydrogen produced using steam methane reforming (SMR) with carbon capture and storage (CCS) is cheaper than green hydrogen produced via electrolysis. Platts assessments showed grid-based alkaline electrolysis costs in the Netherlands averaging $5.38/kg in July, versus $2.69/kg for SMR with CCS. Platts is part of Commodity Insights.
Incumbents such as industrial gas and fertilizer companies need low-carbon hydrogen volumes associated with existing SMR assets and, in addition, avoid the costs associated with developing an entirely new production pathway.
As such, some of the largest clean hydrogen projects to have taken positive FIDs are in North America, with two operational carbon capture-enabled plants in Canada and more planned in the US.
Air Products’ Louisiana blue hydrogen and ammonia facility is planned to produce over 750 MMcf/day, capturing 95% of CO2 emissions when it comes online in 2027. The company already supplies hydrogen to customers through its Gulf Coast pipeline, where there was “significant demand for blue hydrogen,” CEO Seifollah Ghasemi said.
However, US project developers now face similar issues to those developers in Europe grappled with a few years ago, with uncertainty around policy stalling investment decisions. Proposed tax credits under the Inflation Reduction Act offer subsidies of up to $3/kg but require strict additionality criteria for renewables and hourly power matching, which industry representatives say could choke off the US hydrogen industry in its infancy.
First mover advantage
In Europe, the finalization of a hydrogen policy and demand mandates has given developers more certainty to underpin economic decisions, while the European Commission’s approval for state support programs is unlocking private sector investments.
The EU and national governments such as Denmark and the UK have also awarded first subsidy schemes, and developers are securing offtake agreements from early movers looking to decarbonize operations. The electrolyzer industry is scaling up, with hydrogen project developers increasingly focused on medium sized projects of 100 MW and above that are better placed to weather the cost increases of recent years and take advantage of economies of scale, learning from smaller pilot plants.
Hy24, a joint venture between investment manager FiveT Hydrogen and private equity firm Ardian, is among the backers of Sweden’s H2 Green Steel 700-MW hydrogen project, one of the first in Europe to reach FID with agreed loans now in the administrative phase. Such projects typically do not need third-party funding from either public or private entities, and can progress more quickly toward FID and construction, executives at electrolyzer supplier Thyssenkrupp Nucera said. Industry participants said the premium for green hydrogen was a small part of the endproduct cost, with low power costs supporting the business model.
Export-oriented plants
Meanwhile, project developers in India, the Middle East and other regions are eyeing hydrogen and ammonia exports to demand centers in Europe and East Asia. In Saudi Arabia, Air Products is part of the state-backed 2-GW Neom green hydrogen project now in construction. Elsewhere in the Middle East, the Abu Dhabi National Oil Company has sent a test cargo of blue ammonia from its existing Ruwais plant to Germany, with plans to expand CO2 capture and storage at the site.
Low-cost loans from Indian government companies REC and Power Finance Corp. have helped developers reach financial close. ACME’s 1.2 million metric tons per year Oman renewable ammonia project is under construction after reaching FID for a first phase with the help of a $487 million loan from REC in July 2023. ACME subsequently secured an offtake agreement with Yara.
ACME, Greenko and Reliance were among winners of India’s $2.4 billion hydrogen subsidy plan, and have pledged to accelerate their projects. ACME also has an offtake agreement with Japan’s IHI Corporation from its 1.3 MMt/y renewable ammonia project in Odisha, India, with commissioning expected by early-2027.
Emerging global trade flows
Even as the low-carbon hydrogen and ammonia production landscape takes shape, front-runners are testing the waters with early shipments. Outline contracts and trial shipments indicate potential future trade flows, with production centered in the Middle East, Australia, the US and India.
Exporters are targeting demand in Europe, Japan and South Korea, where energy decarbonization policy is driving market formation. Ammonia is the preferred means for transporting hydrogen over long distances, using existing infrastructure and avoiding the technical challenges of handling hydrogen, which requires temperatures of minus 253 C for liquification, compared with a balmy minus 33 C for ammonia.
For now, however, non-binding agreements currently dominate deal-making. Announced volumes from strategic partnerships since 2020 amounted to 8.9 MMt as of May, including non-binding memorandums of understanding, letters of intent, joint studies and joint ventures. A further 1.7 MMt of binding deals have been struck for low-carbon hydrogen and ammonia under tenders and firm offtake agreements.
Commodity Insights analysts see two principal blue hydrogen export hubs developing in the US Gulf Coast and the Middle East.
“Both regions have low-cost gas, port infrastructure and sequestration geology,” said Brian Murphy, senior analyst at Commodity Insights. “Projects in these two regions are explicitly considering exports as key early stage markets and many have companies from abroad directly involved in project development.”
Since 2020, over 25,000 metric tons of low-carbon hydrogen and derivatives have been shipped globally, mostly in the form of ammonia produced with CCS and mostly from the Middle East. There has also been one demonstration shipment of liquid hydrogen from Australia to Japan. Most activity in AsiaPacific is centered around Japan and South Korea, which have plans to co-fire ammonia with coal in power generation.
Market transparency is improving as participants seek to assess market value and stimulate growth.
Producers are also eyeing the fertilizer industry and new sectors such as marine fuels, but remain cautious.
“We continue to explore green hydrogen projects, but we don’t anticipate spending any meaningful capital until we have a high-quality contract that ensures low risk and higher than portfolio average returns,” an executive at India’s ReNew said. The company signed an agreement with Japanese power generation company JERA in April to supply renewable ammonia.
Though in its early days, the low-carbon hydrogen market is clearly developing in a more realistic phase. The hype bubble may have burst, but the leading projects are now gathering steam, poised to power the sector as it gains maturity.
UK-Australia Collaborations Announced for Renewable Hydrogen Projects
Six innovative projects were evaluated for their potential to drive advancements in renewable energy. With £3.6 million funding grant from Innovate UK and over $7.6 million from Australia, the projects will help advance innovation and new economic opportunities and strengthen business-to-business collaborations.
Forging global partnerships
The UK-Australia-Renewable Hydrogen Innovation Partnerships Programme is supporting the decarbonisation of hard-to-abate industries through joint UK and Australian funding for green hydrogen projects. Innovate UK and Australia’s Department of Climate Change, Energy, the Environment and Water (DCCEEW) worked in partnership to fund innovative projects focussed on the development of commercial products, processes or technical services that will benefit both countries. The programme is being delivered as part of a wider cleantech partnership signed by the UK and Australian governments in 2021.
Strategies for success
The energy transition offers very significant opportunities for growth and jobs in the UK as well as playing a fundamental role in addressing climate change. The UK’s Hydrogen Strategy (2021, refreshed in 2023) sets out how the UK intends to work with investors and industry to build a hydrogen economy as part of the energy transition. The funded projects announced today form part of this effort and will help drive down the cost of green hydrogen, stimulate investment and commercial uptake of renewable hydrogen and industrial decarbonisation technologies. This includes renewable hydrogen production, storage and transport, in particular hydrogen applications to decarbonise industry, agriculture and marine transport.
This is a global endeavour which can only be achieved through strong international
partnerships. Australia and the UK are at the forefront of innovation in the hydrogen sector and enjoy a rich history of collaborating through net zero partnerships. Both nations are committed to developing the hydrogen sector as a secure, low carbon replacement for fossil fuels in the transition to greater energy security and net zero.
Future outlook
Peter Dirken, lead for the UK-Australia Innovation Partnership at Innovate UK said:
‘I am delighted these six green hydrogen projects are now up and running. Not only because they are aimed at bringing much-needed hydrogen technologies closer to market, but also because the collaborative programme they are funded through is proof of our vibrant innovation partnership with Australia’
David Hytch, Head of Energy, Net Zero – Heat and Power, Innovate UK highlighted:
‘This is a great opportunity for the businesses in these partnerships to develop long-lasting relationships that we hope will bring them access to new emerging markets.’
The successful projects include:
Carefreesourcing Pty Ltd and Hydrostar Europe Ltd with a focus on producing hydrogen from floating PV powered unpurified water electrolysis.
Hydgene Renewables Pty Ltd and We are Nium Ltd with a focus on circular, decentralised, on-farm production of green hydrogen and ammonia.
Rux Energy Pty Limited and Steamology Motion Limited – the HyZEM project is supporting hydrogen storage and power system for zero emissions maritime vessels.
Hadean Energy Limited and Modular Clinton Global Limited – the Hy-PACT project focuses on hydrogen production, supply chain affordability, certification and traceability.
Australia Sunlight Group Pty Ltd and Graphene Innovations Manchester Ltd with a focus on accelerating low-carbon hydrogen production and storage capability.
Hamr Energy Pty Ltd and Supercritical Solutions Ltd working on innovative green methanol production using supercritical water electrolysis.
Link: https://hydrogen-central.com/uk-australia-collaborations-announced-for-renewable-hydrogen-projects/
Australia Breaks Ground on 10MW Green Hydrogen Project, Paving the Way for Renewable Energy in Albury-Wodonga
Large-scale hydrogen project advances to major milestone
Today the first sod has been turned on one of Australia’s largest renewable hydrogen projects, starting the energy transition for Albury-Wodonga’s gas network and providing a new source of renewable energy for regional industry, homes and businesses.
Federal Assistant Minister for Climate Change and Energy, Mr Josh Wilson MP, joined project leader Australian Gas Infrastructure Group (AGIG), its partners and community leaders to mark the beginning of construction of the $65 million Hydrogen Park Murray Valley project.
A 10-megawatt LONGi Hydrogen electrolyser will form the centrepiece of the project, enabling Hydrogen Park Murray Valley to generate around 500 tonnes of renewable hydrogen and eliminate upwards of 3,000 tonnes of emissions each year.
The renewable hydrogen from the facility will be blended into the local network at up to 10% by volume to commercial and industrial gas users, and around 40,000 Albury-Wodonga homes and businesses.
Acting AGIG Chief Executive Officer, Cathryn McArthur said the start of construction is a positive signal about the potential for renewable gases in the energy transition.
“This is a project of significant scale, which brings us one step closer to establishing a renewable gas industry in Australia and responds to the needs of customers for more renewable generation to support Australia’s energy transition.
“AGIG is committed to reducing emissions and we believe that renewable gases can play a critical role through the transition – this will be our third hydrogen project, following the success of our renewable Hydrogen Park facilities in South Australia and in Gladstone.
“We have been encouraged by the interest from community and industry in the Murray Valley project, which includes the recent signing of a Memorandum of Understanding with North-East Water to explore the potential to use recycled water from its wastewater treatment plant as well as supplying it with surplus oxygen from the hydrogen production process.
“Importantly this project is demonstrating the potential for industry to have greater flexibility in how they reduce their emissions, either by using blended gas delivered through the network or by purchasing renewable gas through a certificate scheme.”
Mars Petcare has become the first business in Australia to take this path to reduce its carbon footprint, securing all Renewable Gas Guarantee of Origin certificates allocated to production at Hydrogen Park Murray Valley for its important food manufacturing business under GreenPower’s Renewable Gas Certification scheme.
Hydrogen Park Murray Valley is financially supported by the Australian Renewable Energy Agency, the Victorian Government and the Clean Energy Finance Corporation.
“We thank the Australian and Victorian Governments for their support of this project, along with our project partners and the Albury-Wodonga community for welcoming this important facility.”
Federal Member for Indi, Helen Haines: “Wodonga has a very strong and proud history of manufacturing and industry, and this is an exciting project for the innovation and future development of green hydrogen, not only for our region but for our nation.”
Mars Petcare General Manager, Craig Sargeant: “Mars Petcare Australia is proud to play a leadership role in helping to create a renewable energy hub in north-east Victoria and a key part of this is working together with AGIG to purchase all of the Renewable Gas Guarantee of Origin certificates at Hydrogen Park Murray Valley. This is all part of our pathway to net zero carbon emissions at the Mars Petcare Wodonga site.”
North East Water Managing Director, Jo Murdoch: “By collaborating with AGIG on this project, we’re creating circular economy synergies between our upgraded wastewater treatment plant and the new hydrogen facility, with the potential to supply biogas, enriched oxygen, and recycled water for a more sustainable future.”
Background
AGIG owns, operates and invests in infrastructure which delivers gas to more than two million homes and businesses. It powers generators, mines, manufacturers and household appliances and the combined network makes AGIG one of the largest gas infrastructure businesses in Australia.
AGIG manages over 35,000km of world-class distribution networks, more than 4,300km of transmission pipelines and 60 petajoules of storage capacity, valued at a combined $10 billion. We employ approximately 500 people with more than 1,600 contractors working on our business.
AGIG is leading the Australian renewable hydrogen industry, with the establishment of Hydrogen Park SA, the largest operational electrolyser in Australia, the construction of Hydrogen Park Murray Valley and several other renewable hydrogen and biomethane projects in development.
AGIG has a low carbon vision to deliver 100% renewable gas by no later than 2050, with at least 10% renewable gas blends delivered to homes and businesses though our distribution networks by 2030.
Australia’s First Hydrogen Fuel Cell R&D Hub Opens
Deakin University has opened Australia’s first dedicated hydrogen fuel cell research and development centre, giving researchers and industry access to prototyping and fabrication infrastructure.
Opened on Tuesday, the Hycel Technology Hub is based at the university’s Warrnambool campus in Southeast Victoria and features a first-of-its kind testing station for hydrogen fuel cells with a power output of up to 6kW.
The facility was made possible with a $9 million contribution from the federal Education department and $9 million from the Victorian Higher Education State Investment Fund. The facility is valued at more than $20 million.
Deakin University expects the hub will facilitate fuel cell technology research for potential use in “land vehicles, aviation and marine applications, as well as ground-based uses such as generators”.
The technology converts hydrogen into electricity, without producing carbon emissions.
Construction of the 2,200 square metre hydrogen fuel cell research, prototyping and fabrication facility initially began in mid-2022 and wrapped up earlier this year. The research facility is also located within a Victorian Renewable Energy Zone.
Aside from the fuel cell testing station, Hycel features a product engineering development laboratory, three dedicated laboratory spaces, space for industry to co-locate, and other associated offices.
It also includes plumbed-in low pressure and high pressure supplies of hydrogen for use in specialised lab equipment.
Hycel director Professor Tiffany Walsh said “Hycel brings a hands-on approach to real-world hydrogen usage”.
“At Hycel, industry partners can leverage these unique spaces and equipment to maximise their competitiveness and create new global market opportunities,” Professor Walsh said.
“And all within the broader context of hydrogen adoption encompassing safety, regulatory, societal and workforce development considerations.”
According to a draft of the federal government’s Transport sector decarbonisation plan, hydrogen fuel cell technologies are expected to play a role in the decarbonisation of long-haul trucks and regional aviation.
But it is still unclear whether hydrogen fuel cells will stand up as a “competitive long-term light vehicle decarbonisation solution” due to their “relatively low energy efficiency and the need to establish new refuelling infrastructure”.
The Commonwealth’s decarbonisation plans for six hard to abate sectors are still under development. The Victorian government is also due to release a Renewable Gas Directions Paper later this year, which will include support for the renewable hydrogen sector.
Victoria’s Minister for Energy and Resources Lily D’Ambrosio said Hycel “will be critical to accelerating the development of a Victorian renewable hydrogen sector, as we seize the regional jobs and economic opportunities this emerging technology presents”.