Low-emissions hydrogen has integral decarbonisation role: Deloitte at APPEA 2023

Low-emission hydrogen is a key building block in decarbonising the Australian economy, complimenting other emissions reduction innovations and technologies, the biggest oil and gas conference in the southern hemisphere heard.

Deloitte Partner Matthew Walden told the APPEA 2023 Conference & Exhibition in Adelaide that several challenges existed in developing a low-emissions hydrogen industry.

“Presently, hydrogen is a key global commodity used within the production of chemicals including ammonia and for refining activities,” Mr Walden said.

“Low-emission hydrogen is emerging as an integral building block for the decarbonisation of the global economy, serving as a complementary emission reduction solution to direct electrification and the use of other low-emission technologies such as bioenergy.”

But Mr Walden said for a low-emission hydrogen industry to develop, the disconnect between consumer and producer expectations, high production and end-use technology costs and regulatory challenges must be overcome.

“Important mechanisms to achieve this include the implementation of targets and mandates for low-emission hydrogen production and uptake, facilitation of product premiums by industry, targeted public funding and financing and revenue support mechanisms,” he said.

Samantha McCulloch said hydrogen was one of a raft of ways natural gas would play its part in getting to net zero.

“Natural gas can kick-start production of low-emissions hydrogen in a cleaner energy future,” she said.

“Our trading partners who purchase our LNG today are likely to be the same partners who will buy our hydrogen tomorrow.

“Under the International Energy Agency’s Net Zero by 2050 scenario, over a quarter of hydrogen in 2050 will come from natural gas utilising carbon capture utilisation and storage (CCUS).

“Natural gas combined with CCUS is currently by far the most affordable pathway to low-carbon hydrogen production – meaning significantly more emissions reductions per dollar today.”