As the Commonwealth undertakes its review of the National Hydrogen Strategy, it is also seeking feedback on the implementation of its $2 billion Hydrogen Headstart program, which has already been limited to projects based on hydrogen from renewable energy.
Natural gas with carbon capture, utilisation and storage is the lowest cost and most technologically advanced pathway, delivering significantly more emissions reductions per dollar today. The IEA estimates there are some 650,000 tonnes of low-carbon hydrogen produced each year, of which 92 per cent is produced using natural gas with CCUS, 5 per cent is produced from bioenergy, with the remaining 3 per cent produced from wind and solar.
To be clear, this is not to suggest that we shouldn’t be supporting the development of renewables-based hydrogen production.
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