A new report by Advisian for the Clean Energy Finance Corporation looks at green hydrogen in 2020, 2030 and 2050, and found it was already near cost competitive in heavy trucking, buses and remote power industries versus incumbent technologies.
The Australian Hydrogen Market Study, prepared by energy analysts Advisian (a division of Worley Group), also found cost competitiveness could be reached in further transport sectors by the end of the decade.
It advises large-scale development as essential to pushing down installation and commissioning costs, “similar to the accelerated development experienced by Australia’s large scale renewable energy sector.”
Ian Learmonth, CEFC CEO, said in a statement that, “As with any new technology, costs will decline over time.
“The purpose of this analysis is to give industry participants and investors an understanding of the potential economics for the uses of hydrogen in the Australian context, including potential early adopters.”
Key drivers for green hydrogen competitiveness included:
- Electrolyser capital cost trends: This will largely be driven by global developments through increased research and development spend and value manufacturing at scale.
- Renewable energy costs: The continued dramatic decline in solar and wind generation costs as an input is key to lower hydrogen production costs.
- Installation and operational efficiencies will be needed: Electrolyser equipment costs currently make up approximately 50 per cent of total electrolyser capital cost, with the balance of plant and installation each making up approximately 25 per cent of the initial installation and commissioning costs.
The study can be downloaded here.
The launch coincides with the 2021 Australian Hydrogen Conference, running on Wednesday and Thursday at the International Convention Centre Sydney.
Picture: Hydrogen Park SA (www.growthstate.sa.gov.au)
Subscribe to our free @AuManufacturing newsletter here.