Grattan report proposes strategic steps to underpin Australia's hydrogen adoption
A new report by the Grattan Institute sheds light on Australia's potential to leverage hydrogen as a key player in achieving net-zero carbon emissions.
Titled 'Hydrogen: hype, hope, or hard work?', the Grattan Institute report by by Tony Wood, Alison Reeve and Richard Yan highlights the critical need for targeted governmental support to realize these ambitions.
Investigating specific sectors like ammonia, alumina, and iron production, the report underscores the importance of government intervention to bridge the "green premium" gap. Estimated costs to the government are anticipated to range between $600 million and $2 billion annually, presenting a strategic investment opportunity.
The proposed measures revolve around a three-pronged strategy.
Firstly, the report recommends a focus on lowering electricity prices through advancements in renewable energy generation, storage, and transmission.
Secondly, it advocates for an adjustment in carbon pricing mechanisms to drive down emissions in heavy industries.
Thirdly, utilizing industry policies to create demand for green versions of commodities becomes imperative to encourage a shift towards hydrogen-based production.
The report advises a selective approach supporting hydrogen applications, prioritizing industries where hydrogen exhibits maximum potential for emission reduction and economic growth.
The report also advises against investing in areas where hydrogen might not prove to be the most viable solution.
The reforms proposed by the report aim to position Australia on a trajectory towards net-zero emissions by 2050, fostering a hydrogen industry that not only reduces domestic emissions but also fuels export industries, bolstering national prosperity.
