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Submission to the Review of the National Hydrogen Strategy

August 23, 2023
Amandine Denis-Ryan and Andrew Gorringe and Jay Gordon and Kevin Morrison
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Key Findings

Urgent action is required to capture Australia's hydrogen potential.

There are promising opportunities in the use of hydrogen for domestic production of ammonia or of green iron.

Direct hydrogen exports and the use of hydrogen in gas distribution networks do not make financial sense

18 August 2023

To: Department of Climate Change, Energy, the Environment and Water
RE: Review of the National Hydrogen Strategy


Thank you for the opportunity for the Institute for Energy Economics and Financial Analysis (IEEFA) to present its submission to this consultation.

Regards

Amandine Denis-Ryan - Chief Executive, IEEFA Australia
Andrew Gorringe - Energy Finance Analyst, Australian Coal
Jay Gordon - Energy Finance Analyst, Australian Electricity
Kevin Morrison - Energy Finance Analyst, Australian Gas


Submitted via email.
 

Key points 

  • Prioritising decarbonisation of ammonia production makes financial sense.

  • Using hydrogen for domestic production of green iron is also a promising decarbonisation opportunity.

  • Direct hydrogen exports do not make financial sense.

  • Using hydrogen in gas distribution networks does not make financial sense.

  • Australia must accelerate development of green iron technologies compatible with Pilbara iron ore.

  • Urgent action is required to capture Australia's hydrogen potential.

  • The Australian government should not support hydrogen production based on fossil fuels plus carbon capture and storage.

  • Domestic needs should be prioritised to avoid repeating the gas market experience.

  • Consumers should be protected from muddled messages by the gas industry on 'renewable gas'.

  • Australia's energy market bodies need clear signals that acknowledge hydrogen is not a viable future household fuel.

  • Any upgrades to the existing gas infrastructure should be considered very carefully.

  • Common-user facilities should be prioritised.

  • There are many collaboration opportunities with India to support the growth of Australia's hydrogen industry.

Amandine Denis-Ryan

Amandine is a recognized expert in net zero emissions transitions across the economy. She led the development of the first domestic net zero emissions pathway for Australia and subsequent updates, which are considered to be the reference for Paris-aligned pathways and used by business, finance and government organisations.

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Andrew Gorringe

Andrew Gorringe is an Energy Finance Analyst, Australian Coal, at IEEFA. Andrew researches and produces expert analysis on topics covering the Australian and global coal industry and energy finance investment.

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Jay Gordon

Jay Gordon is an Energy Finance Analyst at IEEFA, focusing on the Australian electricity sector. He brings experience in modeling Australia’s energy system transition, including investigating the role of the electricity sector in helping the broader economy transition towards a net-zero future.

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Kevin Morrison

Kevin Morrison is an Energy Finance Analyst, Australian Gas. Kevin works closely with the global oil and gas team to examine issues facing the Australian LNG and gas sector.

Prior to joining IEEFA, Kevin worked for more than 30 years as a financial journalist for Reuters, Sydney Morning Herald, the Financial Times (FT) and Argus Media. Half of this working period was covering the energy and resources sector both in Australia and the UK.

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