The uses of hydrogen
Hydrogen is the most common chemical in the universe. By using either renewable energy sources or the surplus of traditional fuels, hydrogen can be used for energy storage as a gas or liquid or for use as a raw industrial material.
When hydrogen is produced using clean energy or traditional methods, it can be used to store surplus energy and power stationary fuel cells, fuel cell vehicles or be used for the generation of power.
Around the world, hydrogen is also used as a key ingredient in the manufacturing process for food, agriculture and other sectors.
Currently produced in large volumes, via Steam Methane Reforming (SMR), hydrogen can be used to meet industry need for ammonia, methanol, plastics and in metal processing and refinery operations.
Hydrogen supports technological developments that can be used to:
• Increase energy efficiency
• De-carbonise inefficient sectors – logistics,
• Improve energy system reliability
• Contribute to long-term emissions reductions
Clean hydrogen use in Australia would help to reduce emissions in those high-temperature industries as well as some transport sectors.
The Hydrogen market
The global market for hydrogen is expanding quickly, with demand for hydrogen exported from Australia estimated to reach over three million tonnes each year by 2040, which could be worth up to $10 billion annually (Opportunities for Australia from Hydrogen Exports).
There is also broad recognition from the Australian Government that hydrogen is a powerful and beneficial energy carrier and feedstock of the future.
To support domestic growth of the sector, the CSIRO produced a National Hydrogen Roadmap for the development of a hydrogen industry in Australia. To date, the Federal Government has also invested $370 million into the National Hydrogen Strategy.
Through specialised ‘Hydrogen Hubs’, both state and federal governments hope to reduce technical uncertainties and build up domestic supply chains and production capabilities in Australia.
AFE’s Gladstone Energy and Ammonia Project has been listed as a ‘Project of Significance’ to the State of Queensland.
What is ‘Blue Hydrogen’?
Hydrogen can be classified as either ‘Blue’, ‘Green’ or ‘Brown’ depending on its production process.
At Australian Future Energy, we can provide a sustainable and clean hydrogen at a competitive price by using the latest technology to create ‘Blue Hydrogen’.
‘Blue Hydrogen’ is produced from fossil fuel feedstock by means of technologies such as Steam Methane Reforming (SMR) and gasification in combination with Carbon Capture Utilisation and Storage (CCUS) technology.
- Production cost: $USD 1.50 per kg, in most preferred regions in the near-term.
- Set to decline further to as low as $USD 1.20 per kg by 2025.
- Dependent on cost of underlying feedstock.
‘Green Hydrogen’ is produced from renewable power or renewable feedstock by means of technologies such as water electrolysis or biomass gasification.
- Production cost: $USD 10-15 per kg in 2010 to $USD 4-6 per kg in 2021.
- Set to decrease to as low as $USD 2.50 per kg by 2030.
- Dependent on the cost of renewable energy and water.
AFE regards ‘Blue Hydrogen’ as a vital part of the hydrogen mix in the long term.