[Victoria Energy Minister] Roadmap towards Australia's Hydrogen Ambition

"Renewable hydrogen is certainly the next big step development, and Victoria is seizing that opportunity." - Keynote by the Hon. Lily D'Ambrosio, Energy Minister, Victoria

Background

On Tuesday September 28, the first IMPACT series commenced online, highlighting Australia's hydrogen prospects in eyes of regulators, developers, and financiers. With great honor, an approximately 200+ industry peers joined the livestream, with Victoria Ministry of Energy, Environment and Climate Change, Victoria Department of Environment, Land, Water, and Planning, and industrial mainstream ENGIE, SMBC, and H2 Energy sharing the insights.

Our Key Takeaways

Victoria Energy Status and Targets (Energy Ministry) - According to Minister D'Ambrosio, the share of RE energy in Victoria increased from around 10% of the generation mix at the end of 2014, to 25% in late 2020. The overall state RE targets commits a 40% renewables share by 2025, 50% by 2030, and net-zero GHG emission by 2050. On top of the concluded 928MW RE capacity suppoted by Victoria’s first renewable energy target auction, a second renewable energy reverse auction is online targeting at least 600MW new capacity

Hydrogen Roadmaps and Supports (DELWP, Victoria) - Elaborated by Ms. Gabrielle Henry, Director of Industry Engagement and Development of DEWLP , the released grants program to support hydrogen industry development in Victoria include the $6.2 million Renewable Hydrogen Commercialisation Pathways Funds, the $1 million  Renewable Hydrogen Business Ready Fund, and the $108 million Energy Innovation Innovative. With regards to the state's production and export strategy, two highlight projects including Hydrogen Energy Supply Chain (HESC) pilot project (currently underway) and Hydrogen Park Murray Valleng (to be commissioned in 2023) shall be on the top of the list. Potential export destinations include Germany, Japan Korea, with supporting ports be Portland, Geelong, Melbourne, Hastings.

On Top 3 Criteria of Hydrogen Project Finance - Mr. Jeremy Hasnip from SMBC emphasize on (1) technology reliability, (2) social acceptance and policy supports, and (3) long-term predictable off-take contracts.

On Commercial Viability of Hydrogen - Mr. PingYang Li, SVP-BD of ENGIE Hydrogen drew experiences from ENGIE's YURI Green Hydrogen to Ammonia Project in West Australia, suggesting that "Hydrogen as of technology is in the making stage. The cost reduction is not going to be competitive by itself automatically, the human beings need to use the technology and by using it and scaling it up, the cost will be reduced."

On Hydrogen Adoption in Europe - Mr. Clifford zur Nieden of Swiss hydrogen developer H2 energy comments that 14100 terabyte hours energy has been used in Europe is all fossil, and 71% of which will have to be shifted towards hydrogen for decarbonization. Hydrogen mobility plays a key role to covert toads fossil energy carries to fully renewable carriers.

A Big Thank You

Greatly appreciate all presenters and participants joined us. The IMPACT program will be a long-term, topic-driven series that facilitates knowledge transfer across international boarders.

"The IMPACT series is a digital intelligence platform that teams up with global energy leaders, administration, practiontioner and forward thinkers to enable sustainable transition and inspire business growth from good to great."