Updated: Jun 26
What is Hydrogen Fuel?
Hydrogen fuel is not found in abundance in nature, but could be the missing piece that allows us to build an export industry in Australia with renewable energy that rivals natural gas.
Hydrogen has huge potential, it can power vehicles and supply heat with little emissions. The recent development of fuel cells has seen many car manufacturers focus on the production of cars powered by hydrogen fuel but what are the key benefits?
Benefits of Hydrogen Fuel
The stand out benefit of hydrogen fuel is that no carbon emissions are produced when electricity is generated. The only emission when burned is the water vapor, and so the key benefit here is that carbon dioxide is not produced. In turn, with the reduction in carbon dioxide there is less smog in the air which has a huge impact on the health of the global population.
Switching to hydrogen fuel will allow Australia to be independent and no longer dependent on oil from other countries. This will have significant positive impacts on the Australian economy. Currently, most of the oil in Australia is imported from foreign countries and so changes in price and supply are out of the control of Australians. By leading the way with hydrogen fuel, Australia will be less dependent on other countries and more in control on the impacts this has on their economy.
Hydrogen Fuel export from Australia
The growing popularity of hydrogen fuel has seen many countries now look to hydrogen fuel as the future of renewable energy. The developments over the last 5 years has positioned Australia to become one of the major exports of hydrogen fuel.
The report prepared by ACIL Allen Consulting and commissioned by ARENA, has highlighted that hydrogen fuel could now become a huge export opportunity for Australia. The report outlines that hydrogen exports could be worth $1.7 billion annually generating 2800 jobs in Australia by 2030.
Many countries are now committing to becoming customers of hydrogen with experts predicting that the global demand for hydrogen fuel to increase dramatically in the next 10 years. In particular, in Asia where many countries like Korea, Japan and Singapore are all looking to decarbonize their economies with hydrogen.
Australia is well positioned with established trade connections with Asia as an energy exporter. The country has the infrastructure to support hydrogen energy and has a great opportunity to become a leading exporter globally.