Insight - Green hydrogen may be the future, but it’s complicated

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There are still immense challenges facing a hydrogen future.

An example of the immense challenges facing a hydrogen future can be neatly encapsulated by looking at Tasmania, Australia’s island state that is seeking to become a global leader in producing and exporting green hydrogen.

This sets it apart from blue hydrogen, which is also touted as a clean energy, but it’s produced by using natural gas with carbon capture and storage. What is less certain is how all the various moving parts are going to fit together, and the likelihood is that building a new industry from scratch is going to take considerably longer than many of the project proponents expect.

For Tasmania to fulfil its green hydrogen potential it will take numerous companies working together to build renewable generation, grid expansions and new connections, electrolysers, and new capabilities at the port of Bell Bay, where most of the planned projects are likely to be located.Not only do all these various players have to come together and agree on terms, they then have to align their developments so that the assets are all ready at more or less the same time.

If it goes ahead that will exhaust the current spare electricity available, meaning only one relatively small project can get up before new generation and transmission capacity is installed.

 

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