Evaluating the Economic Fairways for Hydrogen Production in Australia

Abstract

Assessments of hydrogen project viability typically focus on evaluating specific sites for development, or providing generic cost-estimates that are independent of location. In reality, the success of hydrogen projects will be intimately linked to the availability of local energy resources, access to key infrastructure and water supplies, and the distance to export ports and energy markets. In this paper, we present an economic model that incorporates assessments of these regional factors to identify areas of high economic potential for hydrogen production -the so-called "Economic Fairways" for such projects. In doing so, the model provides a tool that can be used to inform investors and policy makers on the available opportunities for hydrogen development and their infrastructure requirements. The model includes analysis of the regional economic potential for both blue and green hydrogen projects. It accounts for hydrogen production from renewable (wind and solar) sources, as well as non-renewable sources (steam-methane reformation and coal gasification) combined with carbon capture and storage. Results from case studies conducted with the tool are presented, illustrating the potential for hydrogen production across Australia.

Optimising Renewable Generation Configurations of Off-Grid Green Ammonia Production Systems considering Haber-Bosch Flexibility

“…The HEFT analysis accounts for both the quality of the renewable energy source, the availability of local infrastructure (road, rail, water and power) as well as plant economics when assessing the potential for hydrogen production [14]. An example of the infrastructure map with annual average solar capacity factors is shown in Figure 1.…”

“…An example of the infrastructure map with annual average solar capacity factors is shown in Figure 1. Details of the HEFT model can be found from [14].…”

“…In November 2019, the Australian federal government launched its National Hydrogen Strategy [12] with the goal of positioning Australia as a major player by 2030. Several other studies have also recognized Australia's potential competitive advantage in the emerging hydrogen economy [14,15,16,17,13].…”

“…We assess location related factors with our Hydrogen Economic Fairway Tool (HEFT), developed in collaboration with Geoscience Australia [14]. The tool identifies regions across Australia with high potential for hydrogen production by considering renewable resource quality, access to water, ports, roads, railways, electrical transmission, and other existing critical infrastructure.…”

Evaluating the Economic Potential for Green Ammonia Production in Australia

“…Several other studies have also recognized Australia's potential competitive advantage in the emerging hydrogen economy (e.g. [2,[6][7][8]). For long-distance delivery to international markets, hydrogen needs to be compressed, liquefied, or converted into an alternative energy carrier.…”