Expanding further into hydrogen

Green hydrogen production continues to grow at a rapid pace, with over 109 kilo tonnes per annum produced globally in 2022, representing a 44% growth compared to 2021. Countries including US, Denmark, Canada and Egypt, have announced over 111.9 million tonnes per annum capacity in 2022 alone.   

While hydrogen is clearly an expanding part of the sector, some aspects of it are still nascent. New research indicates that the hydrogen vehicle market is still in its infancy. Passenger vehicles make up over 90% of the hydrogen vehicle market, the market’s development requires further progression in government incentives, refuelling infrastructure and price control. The potential for hydrogen commercial vehicles is expected to dwarf the passenger vehicle market over time. Currently the hydrogen commercial vehicle market is dominated by China thanks to generous government support. It’s estimated that over 20,000 hydrogen forklifts will be shipped from China by 2030, double that of the US.   

The possible uses of hydrogen as a renewable power source also continue to expand with a new discovery by Australian scientists that converts air into electricity. This leverages an isolated enzyme from soil bacteria that then uses hydrogen in the air to turn it into a natural battery that could power small devices. There is some debate over how practical this discovery is due to the minute amounts of hydrogen in air. No doubt more research will be undertaken to determine how this could be potentially commercialised. 

Producing green hydrogen (currently just 1% of all hydrogen production) requires freshwater, making it expensive and challenging to produce en masse. To address this researchers at the Royal Melbourne Institute of Technology are looking at how seawater may be able to be used in green hydrogen production in a cost-effective way. They are developing a special catalyst that can be used with seawater to create green hydrogen that requires little energy and can potentially be produced at scale. 

Governments are also looking at how to facilitate expanded production and development of hydrogen. The Queensland Government has been reviewing legislation required to support the regulation of renewable hydrogen in a bid to grow the industry. This includes draft legislation regarding the transportation of hydrogen via pipelines with the draft Gas Supply and Other Legislation (Hydrogen Industry Development) Amendment Bill 2023. The bill is currently open to consultation with submissions open until Friday 3 April.   

The legislation seeks to introduce a process to grant licences to develop pipelines to transport hydrogen, bio methane and other renewable gases. This will address gaps in the current legislative framework, including:

• Amending the definition of “covered gas” in the Gas Supply Act 2003 to include hydrogen and other gases. This will mean distribution authority applications can be made to transport these gases; and
• Amending the Petroleum and Gas (Production and Safety Act) 2004 as it currently only covers hydrogen where it is to be used as a fuel gas. The proposed changes will make it clear that licensing and approval laws for transmission pipelines carrying hydrogen will apply to “regulated hydrogen”. “Regulated hydrogen” includes hydrogen blends and other gases similar to hydrogen like methanol and ammonia. This will enable licensing for hydrogen pipeline so developers can make one application that considers the cultural heritage of the proposed area rather than requiring them to obtain the approval of landholders and native title holders separately.  

In addition the Queensland Government is undertaking a review of all regulations related to components of the hydrogen value chain this year. 

With the additional focus and investment on growing the hydrogen industry it’s expected that more developments and legislative reform is likely.