Australia’s clean hydrogen revolution is a path to prosperity
–John Mathews, Professor Emeritus, Macquarie Business School, Macquarie University. Days out from the United Nations climate summit in Glasgow, the Morrison government on Tuesday announced a “practically achievable” path to reaching its new target of net-zero emissions by 2050. As expected, the government will pursue a “technology not taxes” approach – eschewing policies such as a carbon price in favour of technological solutions to reduce emissions. Developing Australia’s fledgling hydrogen industry is a central plank in the plan. This technological shift should not be seen as a cost burden for Australia. Yes, major transformation in industry is needed as it moves away from conventional fossil-fuelled processes. But this green industrial revolution is a potential source of great profit and prosperity – a fact Australia’s business sector has already recognised. Acting quickly, and powering the shift with renewable energy, means Australia can be a world leader in green hydrogen technology and exports, particular to Asia. A ‘priority technology’ Hydrogen can be produced in several ways. So-called “green” hydrogen is produced using electrolysers, powered by renewable energy, splitting water into hydrogen and oxygen. “Blue” hydrogen is produced from coal or gas, with some carbon emissions trapped and stored underground. A report released earlier this month found Australia could create 395,000 new jobs and generate A$89 billion in new trade by 2040 by investing in clean energy exports. Some of the biggest opportunities were in green hydrogen produced using renewable energy. The National Hydrogen Strategy, published in late 2019 and spearheaded by then-Chief Scientist Alan Finkel, aims to make Australia a world leader in hydrogen. Under the most optimistic scenario, it predicts Australia’s hydrogen industry could be worth A$26 billion to the economy in 2050. Energy Minster Angus Taylor on Tuesday said clean hydrogen was a “priority technology” in the government’s roadmap to reaching net-zero emissions this century, […]