Research finds investors see green hydrogen as Australia’s big opportunity
Research finds investors want Australia to prioritise the development of a low emissions, high integrity hydrogen industry
Green hydrogen, which is produced with renewable energy, appears more economically viable and avoids serious investment risks associated with blue hydrogen, which uses gas as the main input, according to new research commissioned by the Investor Group on Climate Change (IGCC).
With many sectors poised to seek alternatives to higher emissions fuels, investors see a strong opportunity for Australia to be positioned as a key hydrogen producer and user, and will look for ways to accelerate the transition.
But the research highlights a series of investment risks associated with blue hydrogen related to high gas prices, the volatility of gas supply and its reliance on carbon capture and storage (CCS).
IGCC is a collaboration of Australian and New Zealand investors focusing on the impact that climate change has on the financial value of investments. Modelling and analysis was commissioned by IGCC and undertaken by international consulting firm Baringa, with participation in the stakeholder engagement process for the purposes of developing this report undertaken by ARENA, CEFC, CSIRO, APA, APPEA, the Australian National University (ANU), Santos, Woodside Energy, Fortescue Future Industries, Boral, and Incitec Pivot.
