Electricity, synthetic fuels and hydrogen are expected to make up half of the world’s energy mix by 2050, according to leading global economic analyst McKinsey.
Hydrogen as a fuel alternative has garnered strong interest in recent times, as environmentally-conscious minds the world over seek alternatives to fossil fuels.
The first element in the periodic table, hydrogen is abundant on earth and shows significant promise as an alternative to fossil fuels, but its extraction to make it suitable is a little more complicated.
Types of hydrogen
In order to get hydrogen into things like cars, it needs to be separated from other elements through intricate processes, which create varying degrees of residual pollutants.
In the industry, these different types of hydrogen are referred to by colours — grey, blue and green.
Gray hydrogen comes from natural gas and can thus be considered a fossil fuel. It is the dominant form of hydrogen produced currently, thanks to its low cost.
Blue hydrogen is slightly better for the environment. It is produced by the same process, but employs carbon capture, meaning the CO2 produced in the process is captured and stored separately, instead of being released as a pollutant.
Green hydrogen is the ideal. It is produced via electrolysis, which separates the hydrogen and oxygen molecules by applying electricity to water.
According to McKinsey, hydrogen demand is projected to grow fivefold by 2050, driven primarily by road transport, maritime, and aviation.
“Its supply is expected to shift from nearly 100% grey hydrogen to 95% clean production by 2050, as costs decline and policymakers support hydrogen technology adoption,” the report states.
The Aussie hopes
Though the green energy transition often focuses on metals like lithium, cobalt and copper, there are a number of Australian companies doubling down on hydrogen.
Provaris Energy Ltd (ASX:PV1) is developing integrated compressed hydrogen projects for export to regional markets and is building the world’s first commercial-scale vessel for the marine transport of hydrogen.
The company demonstrated the technical and commercial viability of its HyEnergy® Export project with the submission of a feasibility study to the Western Australian Government and project partners last week.
“After a year of engagement with the HyEnergy® project partners and more than six months of design and engineering, we are delighted to have handed over the completed feasibility report,” Provaris managing director and CEO Martin Carolan said.
Fellow West Australian Frontier Energy Ltd (ASX:FHE) is also making a big hydrogen play with its Bristol Springs Solar Project.
A recent study of the project outlined a potential renewable energy capacity of 438 megawatts for the tenure, which includes an initial stage of 114 mega-watts before gradual expansion activities take place.
“Our strategy aligns with the federal and state governments' drive to decarbonise energy supply to industry and households,” Frontier Energy chair Grant Davey said.
“Our expanded footprint allows for relatively cheap expansion as we are strategically located around existing infrastructure.
“Our expansion study indicates the potential for lower cost of green hydrogen production through economies of scale and world class infrastructure in the area.
“We will continue to assess additional opportunities in the region as our long-term strategy is to have renewable green energy generation of more than 1 gigawatt.”
- Daniel Paproth