Australia Announces New $34m Green Hydrogen Plant

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A new $34 million renewable hydrogen plant for Australia has been approved. Energy Minister Chris Bowen said it will be the biggest in the country with a 10 megawatt capacity. It’s hoped that the new plant will make progress towards the country’s climate efforts. 

Australia Hopes Hydrogen Will Help Them Kick Their Fossil Fuel Habit 

The plant will incorporate green hydrogen into gas networks and supply 40,000 households. It’s hoped that green hydrogen could provide a route for the country away from its reliance on fossil fuels. The plant will be powered using wind energy. 

The project will be funded by the Victoria government, the federal government’s Australian Renewable Energy Agency (ARENA), and the Clean Energy Finance Corporation. Darren Miller, CEO of ARENA wrote in a statement…

“It’s essential to scaling up Australia’s renewable hydrogen industry that we get these first-generation projects up and running”

What is Green Hydrogen? 

Last month, Australian PM Anthony Albanese announced a A$2 billion ‘Hydrogen Headstart’ programme. The plan hopes to boost production of hydrogen and its export from the country. Green hydrogen appears to be a central part of Australia’s plan for its new sustainable economy. So, what is it? 

According to the WEF, hydrogen can transport renewable energy over long distances. It could help fulfil energy needs for those places with inhospitable environments for renewables. Green Hydrogen was discussed at COP26 “as a means to decarbonize heavy industry, long haul freight, shipping, and aviation”

Dr Emanuele Taibi, Head of the Power Sector Transformation Strategies, International Renewable Energy Agency (IRENA) told the WEF…

“Green hydrogen is defined as hydrogen produced by splitting water into hydrogen and oxygen using renewable electricity.”

He explains how grey and blue hydrogen are worse for the planet as these processes aren’t sourced from renewable energy like green hydrogen. 

How Climate Conscious Is Australia?

The IEA notes that Australia is a major exporter of coal, uranium and liquid natural gas (LNG). The vast majority of the country’s energy supply comes from fossil fuels. It’s clear then why they’ve decided to shift to green hydrogen as it’s a fairly simple transition from fossil fuels.  

Despite their less than ideal energy consumption, the country has the “highest uptake in the world” for household solar. 3 million Australian homes have solar panels. It’s also the 7th biggest producer of solar energy. 

In this years ‘Energy Policy Review’ by the IEA, they found the country had “significantly raised its climate ambitions”. Australia doubled its emissions reduction target for 2030 and committed to reaching net-zero by 2050. 

Do you think the new green hydrogen plant will help Australia meet their climate targets? 

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