capturing the hydrogen opportunity · hydrogen produced at scale for industry for decades. yet...

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Capturing the hydrogen opportunity Dr Alan Finkel – Australia’s Chief Scientist Energy Exchange Industry Engagement Breakfast Brisbane, 4 December 2018 Rev A

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Page 1: Capturing the hydrogen opportunity · Hydrogen produced at scale for industry for decades. Yet never cost-competitive as a fuel. What has changed? Uncertainty: reports, proposals,

Capturing the hydrogen opportunity

Dr Alan Finkel – Australia’s Chief ScientistEnergy Exchange Industry Engagement BreakfastBrisbane, 4 December 2018

Rev A

Page 2: Capturing the hydrogen opportunity · Hydrogen produced at scale for industry for decades. Yet never cost-competitive as a fuel. What has changed? Uncertainty: reports, proposals,

Capture the hydrogen export marketand domestic benefits

The Opportunity

Presenter
Presentation Notes
https://vectors.co.nz/product-category/maps/country-maps/
Page 3: Capturing the hydrogen opportunity · Hydrogen produced at scale for industry for decades. Yet never cost-competitive as a fuel. What has changed? Uncertainty: reports, proposals,

Why now?

Production

Why Australia?

Domestic applications

Capturing the opportunity

Presenter
Presentation Notes
Outline slide
Page 4: Capturing the hydrogen opportunity · Hydrogen produced at scale for industry for decades. Yet never cost-competitive as a fuel. What has changed? Uncertainty: reports, proposals,

Why now?

Presenter
Presentation Notes
Outline slide
Page 5: Capturing the hydrogen opportunity · Hydrogen produced at scale for industry for decades. Yet never cost-competitive as a fuel. What has changed? Uncertainty: reports, proposals,

Hydrogen produced at scale for industry for decades

Yet never cost-competitive as a fuel

What has changed?

Presenter
Presentation Notes
Uncertainty: reports, proposals, trials but no commercial use for energy Japan declared it will be a long-term, large-scale customer. 6000 cars, 50 busses, 35 refuelling stations in Tokyo for Olympics. At 1964 Olympics introduced first Shinkansen between Tokyo and Osaka. Nationwide 40,000 vehicles by 2020, 800 thousand by 2030. South Korea strongly committed to hydrogen. 9,000 cars by 2020, 630 thousand by 2030.
Page 6: Capturing the hydrogen opportunity · Hydrogen produced at scale for industry for decades. Yet never cost-competitive as a fuel. What has changed? Uncertainty: reports, proposals,

1) A firm commitment from Japan- Export opportunity for Australia

2) Low cost production- From renewables or fossil fuels with

carbon capture and storage

3) Reduced utilisation costs- Fuel cells smaller and cheaper

Presenter
Presentation Notes
Japan declared it will be a long-term, large-scale customer. 6000 cars, 50 busses, 35 refuelling stations in Tokyo for Olympics. At 1964 Olympics introduced first Shinkansen between Tokyo and Osaka. Nationwide 40,000 vehicles by 2020, 800 thousand by 2030.
Page 7: Capturing the hydrogen opportunity · Hydrogen produced at scale for industry for decades. Yet never cost-competitive as a fuel. What has changed? Uncertainty: reports, proposals,

Why now?

Production

Production and handling

Mobility applications

What next?

Presenter
Presentation Notes
Outline slide
Page 8: Capturing the hydrogen opportunity · Hydrogen produced at scale for industry for decades. Yet never cost-competitive as a fuel. What has changed? Uncertainty: reports, proposals,

Producing renewable hydrogen

OO

HH

HH

c

O2

H2

+ OO

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Presentation Notes
https://mcphy.com/en/our-products-and-solutions/electrolyzers/ https://commons.wikimedia.org/w/index.php?search=wind+turbine+icon&title=Special:Search&profile=default&fulltext=1&searchToken=eb5vcse5463jirn3vg20g67cc#/media/File:Wind_Turbine_(2076)_-_The_Noun_Project.svg http://www.clker.com/clipart-pouring-water-1.html http://www.migautotransport.com/diesel-fuel-alternatives-for-semi-trucks/ Gassification Steam Methane Reforming
Page 9: Capturing the hydrogen opportunity · Hydrogen produced at scale for industry for decades. Yet never cost-competitive as a fuel. What has changed? Uncertainty: reports, proposals,

80

70

60

50

40

30

20

10

Record low solar power pricing (US$/MWh)

($)

90

Saudi Arabia2015

Mexico

2016

Peru

2016

Dubai

2016

Mexico

2016

Dubai

2016

UAE

2016

Chile

2016

USA

2015

UAE

2016

Chile

2017

Saudi Arabia2017

Mexico

2017

UAE

2014

USA

2014

USA

2013

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https://electrek.co/2017/11/16/cheapest-electricity-on-the-planet-mexican-solar-power//24956215852
Page 10: Capturing the hydrogen opportunity · Hydrogen produced at scale for industry for decades. Yet never cost-competitive as a fuel. What has changed? Uncertainty: reports, proposals,

Producing Carbon Capture & Storage hydrogen

HH

Carbon Capture & Storage

+H

H

H

H

C

C OO C OO

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Presentation Notes
https://commons.wikimedia.org/wiki/Methane#/media/File:Methane-3D-space-filling.svg https://openclipart.org/tags/wind%20turbine http://www.clker.com/clipart-pouring-water-1.html http://www.migautotransport.com/diesel-fuel-alternatives-for-semi-trucks/ https://www.shutterstock.com/image-photo/set-real-white-steam-isolated-on-199332512?src=MAIRqsdm6ypOMG3NiH8LQw-1-31 Gassification Steam Methane Reforming
Page 11: Capturing the hydrogen opportunity · Hydrogen produced at scale for industry for decades. Yet never cost-competitive as a fuel. What has changed? Uncertainty: reports, proposals,

Shipping sunshine

- Liquefied hydrogen

- Ammonia

- Methylcyclohexane

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Presentation Notes
Page 12: Capturing the hydrogen opportunity · Hydrogen produced at scale for industry for decades. Yet never cost-competitive as a fuel. What has changed? Uncertainty: reports, proposals,

Why now?

Production

Why Australia?

Mobility applications

What next?

Presenter
Presentation Notes
Outline slide
Page 13: Capturing the hydrogen opportunity · Hydrogen produced at scale for industry for decades. Yet never cost-competitive as a fuel. What has changed? Uncertainty: reports, proposals,

An abundance of…

Solar

Wind

Hydroelectricity

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Presentation Notes
https://wallhere.com/en/wallpaper/244913
Page 14: Capturing the hydrogen opportunity · Hydrogen produced at scale for industry for decades. Yet never cost-competitive as a fuel. What has changed? Uncertainty: reports, proposals,

Daily Solar Exposure(megajoule/m2)

24

20.5

17

13.5

10

336 peopleper km2

3 peopleper km2

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Presentation Notes
https://nationalmap.gov.au/renewables/ https://icons8.com/icon/58480/japan-map
Page 15: Capturing the hydrogen opportunity · Hydrogen produced at scale for industry for decades. Yet never cost-competitive as a fuel. What has changed? Uncertainty: reports, proposals,

How much water?

Victorian desalination: 140 gigalitres/year

18 gigalitres water

10% of 2017 LNG exports (50 Mt)

Equivalent to 5 million tonnes of LNG

Example: export business of 2 million tonnes LH2

Wivenhoe Dam: 796 gigalitres

Presenter
Presentation Notes
https://flic.kr/p/cwFpgA Desalination is 0.1 up to 0.2 cents per litre 9 kg water is between 1 and 2 cents cf target hydrogen price of A$2.50 2 million tonnes of hydrogen is 66 TWh and would require about 130 TWh of primary electricity to produce and liquefy
Page 16: Capturing the hydrogen opportunity · Hydrogen produced at scale for industry for decades. Yet never cost-competitive as a fuel. What has changed? Uncertainty: reports, proposals,

An abundance of…

Coal

Methane

Sequestration potential

Presenter
Presentation Notes
https://commons.wikimedia.org/wiki/File:CSIRO_ScienceImage_10945_Coal.jpg
Page 17: Capturing the hydrogen opportunity · Hydrogen produced at scale for industry for decades. Yet never cost-competitive as a fuel. What has changed? Uncertainty: reports, proposals,
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Presentation Notes
Purchased from shutterstock: https://www.shutterstock.com/image-photo/large-wheel-bucket-excavator-lignite-quarry-571086547?src=z18CMQnOrwsdEcC44rlnRw-1-7
Page 18: Capturing the hydrogen opportunity · Hydrogen produced at scale for industry for decades. Yet never cost-competitive as a fuel. What has changed? Uncertainty: reports, proposals,

C OO

Page 19: Capturing the hydrogen opportunity · Hydrogen produced at scale for industry for decades. Yet never cost-competitive as a fuel. What has changed? Uncertainty: reports, proposals,

Why now?

Production

Why Australia?

Domestic applications

What next?

Presenter
Presentation Notes
Outline slide
Page 20: Capturing the hydrogen opportunity · Hydrogen produced at scale for industry for decades. Yet never cost-competitive as a fuel. What has changed? Uncertainty: reports, proposals,

Shipping sunshine?Heavy transport?Industrial heating?Grid resilience?Seasonal storage?

Page 21: Capturing the hydrogen opportunity · Hydrogen produced at scale for industry for decades. Yet never cost-competitive as a fuel. What has changed? Uncertainty: reports, proposals,

Australia’s emissions by sector

Electricity

Direct combustion

Other

Fugitives

Agriculture

Transport

Presenter
Presentation Notes
Electricity = 34%, Direct combustion = 18%, Transport = 17%, Agriculture = 13%, Fugitive emissions = 9% Other = Industrial processes (6%), Waste (2%) and Land use change (1%) http://www.environment.gov.au/climate-change/publications/emissions-projections-2017
Page 22: Capturing the hydrogen opportunity · Hydrogen produced at scale for industry for decades. Yet never cost-competitive as a fuel. What has changed? Uncertainty: reports, proposals,

Electricity: electrolysers are a fast load

Presenter
Presentation Notes
http://www.itm-power.com/news-item/worlds-first-tidal-powered-hydrogen-generated-at-emec http://www.itm-power.com/news-item/e2-75m-electrolyser-system-cost-reduction-grant
Page 23: Capturing the hydrogen opportunity · Hydrogen produced at scale for industry for decades. Yet never cost-competitive as a fuel. What has changed? Uncertainty: reports, proposals,

Transport

Page 24: Capturing the hydrogen opportunity · Hydrogen produced at scale for industry for decades. Yet never cost-competitive as a fuel. What has changed? Uncertainty: reports, proposals,
Page 25: Capturing the hydrogen opportunity · Hydrogen produced at scale for industry for decades. Yet never cost-competitive as a fuel. What has changed? Uncertainty: reports, proposals,
Presenter
Presentation Notes
https://www.partners.alstom.com/Assets/View/92a183b6-b12a-4561-b356-76a587d0de4e?state=230ea9c0-2724-4242-aa6a-05952d70dc02&returnpage=4e6a2482-0425-49a8-8e94-76c35f7227ff
Page 26: Capturing the hydrogen opportunity · Hydrogen produced at scale for industry for decades. Yet never cost-competitive as a fuel. What has changed? Uncertainty: reports, proposals,
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Presentation Notes
A hydrogen fueling station already built in Tokyo’s Shiba Park. https://www.japan.go.jp/tomodachi/2016/spring2016/tokyo_realize_hydrogen_by_2020.html
Page 27: Capturing the hydrogen opportunity · Hydrogen produced at scale for industry for decades. Yet never cost-competitive as a fuel. What has changed? Uncertainty: reports, proposals,

Direct combustion

•Up to 10% blend – no changes

Presenter
Presentation Notes
Electricity = 34%, Direct combustion = 18%, Transport = 17%, Agriculture = 13%, Fugitive emissions = 9% Other = Industrial processes (6%), Waste (2%) and Land use change (1%) http://www.environment.gov.au/climate-change/publications/emissions-projections-2017 Up to 13% blend – no changes Develop production, handling and safety experience Switch to 100% hydrogen – attend to pipes, appliance and meters Schedule into ordinary maintenance 40% cheaper than full electrification
Page 28: Capturing the hydrogen opportunity · Hydrogen produced at scale for industry for decades. Yet never cost-competitive as a fuel. What has changed? Uncertainty: reports, proposals,
Presenter
Presentation Notes
https://www.supagas.net.au/ultra-high-purity-hydrogen-8-8m3.html#.W-2-gvZuJ3g
Page 29: Capturing the hydrogen opportunity · Hydrogen produced at scale for industry for decades. Yet never cost-competitive as a fuel. What has changed? Uncertainty: reports, proposals,

Why now?

Production

Why Australia?

Domestic applications

Capturing the opportunity

Presenter
Presentation Notes
Outline slide
Page 30: Capturing the hydrogen opportunity · Hydrogen produced at scale for industry for decades. Yet never cost-competitive as a fuel. What has changed? Uncertainty: reports, proposals,

September 2018 visit to Japan - Three Goals1) Assess commitment

• Intergenerational issue• Price is crucially important

2030 Target: US$3/kg (US$21/GJ) 2050 Target: US$2/kg (US$14/GJ)

2) Assess technological readiness• Demonstration projects• Safety

3) Promote partnership• Effective!

Presenter
Presentation Notes
https://commons.wikimedia.org/wiki/File:Flag_of_Japan.svg
Page 31: Capturing the hydrogen opportunity · Hydrogen produced at scale for industry for decades. Yet never cost-competitive as a fuel. What has changed? Uncertainty: reports, proposals,

All roads lead to Rome, but the tolls are different

Production: methane, coal or electrolysis

Shipping: ammonia, methylcyclohexane or liquid hydrogen

Generation: hydrogen turbines or ammonia turbines

Page 32: Capturing the hydrogen opportunity · Hydrogen produced at scale for industry for decades. Yet never cost-competitive as a fuel. What has changed? Uncertainty: reports, proposals,

Activities in Australia

Neoen Crystal BrookEnergy Park

AGIG HypSATonsley

Port Lincoln Green Hydrogen Plant

Moreland City Council H2 Waste Truck Trial

Kawasaki Heavy IndustriesHESC Project

ACT Government Vehicle Trial

Jemena Gas NetworksPower to Gas Trial

Northern Oil Advanced Biofuels Pilot Plant

Sir Samuel Griffith Centre

Pilbara Renewable AmmoniaYara Pilbara Fertilizer

Woodside Petroleum

ATCO Clean EnergyInnovation Hub

Page 33: Capturing the hydrogen opportunity · Hydrogen produced at scale for industry for decades. Yet never cost-competitive as a fuel. What has changed? Uncertainty: reports, proposals,
Page 34: Capturing the hydrogen opportunity · Hydrogen produced at scale for industry for decades. Yet never cost-competitive as a fuel. What has changed? Uncertainty: reports, proposals,

The Chief Scientist will bring back a proposal for the development of a national hydrogen strategy to the December 2018 meeting.

National Energy Ministersmeeting on 10 August 2018 10 08 1.008

Page 35: Capturing the hydrogen opportunity · Hydrogen produced at scale for industry for decades. Yet never cost-competitive as a fuel. What has changed? Uncertainty: reports, proposals,

Australian National Hydrogen Strategy Timeline 2019

(Subject to approval by COAG in December 2018)

January – COAG taskforce established

April – Issues paper and consultation: exports

June – Issues paper and consultation: domestic policies and measures

August – Draft national strategy considered by Ministers

September – Public consultation on draft strategy

December –National strategy presented to Ministers

Implementation 2020-2030

Page 36: Capturing the hydrogen opportunity · Hydrogen produced at scale for industry for decades. Yet never cost-competitive as a fuel. What has changed? Uncertainty: reports, proposals,

Energy system transition takes time

Needs shared vision, global partnerships, strategy and some luck

Thank you

Presenter
Presentation Notes