Hydrogen is a cleaner fuel than natural gas because the combustion of hydrogen in air produces heat and water vapour, a carbon-neutral process, as opposed to the combustion of natural gas, which produces carbon dioxide.
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Making most of Australia’s hydrogen energy future
Hydrogen production is a potentially transformative way to bring cleaner energy to markets, and natural gas represents a pathway to accelerating its development. The development of a commercial, industrial-scale hydrogen industry is attractive to governments across the world as it is a cleaner source of energy with the potential to reduce emissions in line with Paris Agreement targets. Australia, with its existing gas expertise and history, also recognises the potential of hydrogen.
Pathways for scaling up the emerging hydrogen industry have been proposed by governments and industry in Australia and internationally, one thing is agreed by all parties: the potential benefits of hydrogen are too large to ignore.
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Cost competitiveness of green hydrogen on horizon: CEFC market study
An extensive market study into the competitiveness of green hydrogen across 25 Australian industry sectors has found that green hydrogen is already approaching cost competitiveness for heavy trucking, buses and remote power, with the potential to become commercially viable across further sectors of transportation as early as 2030.
The analysis shows how parallel advances in production and distribution costs, as well as ongoing technology evolution, will accelerate the commercial attractiveness of green hydrogen across key areas of the economy.
Large scale development would be critical to driving down installation and commissioning costs, similar to the accelerated development experienced by Australia’s large scale renewable energy sector. While hydrogen was closest to achieving commercial parity as an alternative to petroleum products, displacing natural gas provides a potential transitional use to
Sumitomo Corporation and JGC Holdings Corporation, which operates the overseas engineering, procurement, and construction (EPC) business of the JGC Group, have signed a Front End Engineering and Design (FEED) contract for the hydrogen related project planned by Sumitomo Corporation in Gladstone, Australia.