Hydrogen Trials Could Prove Critical to Understanding our Potential Future Fuel Mix

Hydrogen Trials Could Prove Critical to Understanding our Potential Future Fuel Mix

Emily Wood | February 27, 2020

The peak body representing large commercial and industrial energy users, the Energy Users’ Association of Australia (EUAA) is paying close attention to the hydrogen trials underway in Queensland and South Australia, as hydrogen could become an important part of Australia’s fuel mix in the coming decades.

“While hydrogen is a long way from becoming a commercially viable alternative fuel in Australia, it has huge potential and could play a key role in helping to decarbonise our economy,” said EUAA Chief Executive Officer, Andrew Richards

Australia has some complex challenges to consider if we are to further decarbonise our economy.  Hydrogen has been hailed the ‘hero’ by Australia’s Chief Scientist in a recent speech, and with no other current proposed alternative to gas for many of our manufacturing industries, the EUAA agrees hydrogen could be a long-term saviour.

“However, although hydrogen may be part of the future fuel mix, we need to ensure we maintain industry competitiveness in the short to medium term, this means ensuring we can access gas at competitive prices while new and alternative fuel sources are developed,” said Mr Richards.

Gas is a key input into much of our manufacturing and food processing industries along with energy generation, but according to recent ACCC reports, it is unclear if the volumes we require at a price that keeps these industries competitive will always be available. Therefore, being able to gradually feed hydrogen into our gas network could be critical in our future energy mix.

“Modernising industry, in part, is about finding viable alternatives and hydrogen could be one of those alternatives. Investment in this new technology, as with other technologies that show promise, should be encouraged,” said Mr Richards.

The EUAA represents large energy users, some of whom who are spending $1 million per day on energy. Many large energy users are seeking solutions to rising energy costs and have invested billions into energy efficiency, system upgrades, storage, renewable energy, demand response and many other measures with the aim of reducing energy consumption and costs.

Large energy users who are producing essential goods and services, foods, building materials, paper, plastics and raw materials are under increasing pressure from energy bills.

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Media Contact: Emily Wood 0421 042 121

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