The Australian oil and gas industry said the Australian Government focusing on hydrogen is a critical step towards net zero, creating new economic opportunities for the country, according to Australian Petroleum Production & Exploration Association (APPEA).
APPEA welcomed the release of the 2022 State of Hydrogen report, which coincided with a review of the national hydrogen plan.
APPEA Chief Executive Samantha McCulloch stated that the gas sector would be necessary for launching low-emissions hydrogen.
“Natural gas combined with carbon capture, utilisation and storage (CCUS) is currently by far the most affordable pathway to low-carbon hydrogen production – meaning significantly more emissions reductions per dollar today,” McCulloch said.
McCulloch added that it opens the door for all low-carbon hydrogen methods, allowing for faster scale-up to assist economy-wide decarbonisation.
According to the International Energy Agency‘s Net Zero by 2050 scenario, natural gas will supply more than a quarter of hydrogen in 2050 via CCUS.
“We share the nation’s commitment to lowering emissions to get to net zero across the economy by 2050 and hydrogen will be a key tool to get there,” McCulloch said.
McCulloch stated that the gas industry already invests in low-carbon hydrogen development and has the expertise, infrastructure, and business contacts to make the hydrogen economy a reality.
“As the government reviews its national hydrogen strategy, it’s critical we keep all options on the table to make sure we are rolling out hydrogen at the pace and scale required,” she noted.
She added, “Leveraging the most affordable low-carbon hydrogen pathways not only makes net zero more achievable but also minimises the impact on the costs of doing business for Australian manufacturers and industry as they align with our climate targets.”
