Opportunity of the future: hydrogen as fuel and feedstock
Matthew Walden A , Senjit Sarkar A , Samuel Mugford A * and Thomas Wood AA Deloitte Australia, Sydney, NSW, Australia.
The APPEA Journal 63 S464-S467 https://doi.org/10.1071/AJ22195
Accepted: 1 March 2023 Published: 11 May 2023
© 2023 The Author(s) (or their employer(s)). Published by CSIRO Publishing on behalf of APPEA.
Abstract
Low-emission hydrogen is emerging as an integral building block for the decarbonisation of the global economy, serving as a complementary emission reduction solution to direct electrification and the use of other low emission technologies such as bioenergy. Presently, hydrogen is a key global commodity used within the production of chemicals including ammonia and for refining activities. These existing uses offer an initial demand market for low-emission hydrogen as a replacement for the high-emitting alternative. Furthermore, new applications for low-emission hydrogen are emerging within hard-to-abate industries where other decarbonisation solutions are less technically or commercially viable or have constrained feedstocks. These applications include as an input for steel production and as a fuel for the transport industry, particularly for heavy-duty long-haul road transport as well as the use of hydrogen-derivatives within the maritime and aviation industries. However, for a low-emission hydrogen industry to develop, the disconnect between consumer and producer expectations, high production and end-use technology costs and regulatory challenges must be overcome. Important mechanisms to achieve this include the implementation of targets and mandates for low-emission hydrogen production and uptake, facilitation of product premiums by industry, targeted public funding and financing and revenue support mechanisms.
Keywords: ammonia, government policy, green steel, low-emission hydrogen, methanol, refining, SAF, transport fuels.
Matthew Walden is a Partner within Deloitte’s Energy and Climate Advisory with a Bachelor of Business (ACU National), Masters of Applied Finance and Investment (FINSIA) and is an ICAA Business Valuation Specialist. Matt has over 20 years’ experience as a corporate finance and strategy specialist and spent 8 years as an Investment Director at the ARENA, where he was responsible for the Australian Commonwealth’s investment into the renewable hydrogen sector, establishing ARENA’s hydrogen investment team that has invested over $200m in the sector. |
Senjit Sarkar is a Director within Deloitte’s Climate and Sustainability Strategy Advisory team with an A.B. in Economics and Molecular Biology (Cornell University) and an M.P.H. in Healthcare Finance and Policy (Dartmouth College). |
Samuel Mugford is an Associate Director within Deloitte’s Energy and Climate Advisory with a Bachelor of Laws/International Relations, a Diploma of Languages (University of Adelaide) and a Graduate Diploma in Legal Practices (College of Law NSW). |
Thomas Wood is a graduate within Deloitte’s Energy and Climate Advisory with a Bachelor of Chemical Engineering (First Class Honours) and a Bachelor of Commerce (University of New South Wales). |
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