Submission to the Review of the National Hydrogen Strategy

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.