Hydrogen,which burns cleanly and emits only water,is considered a promising fuel that could eventually substitute coal in a range of manufacturing processes,natural gas in heating and power generation,and oil in heavy transport.
Most of today’s hydrogen is limited to “grey hydrogen”,made from gas through a process that emits carbon dioxide into the atmosphere. Green hydrogen,on the other hand,is produced when a renewable energy-powered electrolyser is used to split water into hydrogen and oxygen,making it emissions-free.
However,significant barriers to green hydrogen’s future as an energy source remain;the biggest being the prohibitively high cost of the technology to produce it compared to hydrogen made from fossil fuels.
Loading
Forrest,who is leading amultibillion-dollar push to diversify iron ore giant Fortescue Metals Group into green hydrogen,said the new government scheme was a “wonderful first step”,and a recognition of Australia’s need to remain competitive with the United States,where President Joe Biden’s $US374 billion ($552 billion)Inflation Reduction Act is aiming to stimulate hydrogen production aggressively.
“We have a new government here now and in its first budget it has made a material step to get behind the industry so we are not left behind by Europe,not left behind by North America,” he said.
While details of the scheme’s final design are still being developed,Forrest stressed the importance of the government matching the US government’s tax credits of $US3 ($4.40) a kilogram.