cover image: Hydrogen: Hype, hope, or hard work?


Hydrogen: Hype, hope, or hard work?

1 Dec 2023

AU$/kg of hydrogen $7 The cost of electricity drives the cost of hydrogen at the point of Using grid electricity production, so the key to low-cost hydrogen production is reducing $5.86$6 $5.57 $5.56 $5.66 wholesale prices for electricity. [...] Grattan Institute 2023 10 Hydrogen: hype, hope, or hard work? But the largest part of the cost of green hydrogen production is the renewables, the choice is between moving molecules or electrons (see cost of electricity to run the electrolyser (see Figure 2.1 on the previous Figure 2.2 on the next page). [...] page).3 While using grid electricity may allow the hydrogen production to be co-located with the hydrogen user, the cost of such hydrogen is ‘Moving molecules’ involves producing the hydrogen close to the not expected to fall (see the top chart), because the delivered cost of renewable generation, and then transporting it to its ultimate user. [...] the resulting commodity (such as iron, steel, or alumina) on trucks, trains, and ships than to move the hydrogen or the electricity to produce The best combination of infrastructure will be project-specific and the hydrogen. [...] But it is now time to become truly strategic the local climate).a about hydrogen – to rule out some potential uses and focus attention on others, and to consider the development of a hydrogen industry in Water availability will be a determining factor for where green the broader context of Australia’s transition to net zero.


Tony Wood, Alison Reeve, Richard Yan

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