Evaluating the economic fairways for hydrogen production in Australia

Assessments of hydrogen project viability typically focus on valuating specific sites for development, or providing generic cost-estimates that are independent of location. In reality, the success of hydrogen projects will be intimately linked to the availability of local energy resources, access to key infrastructure and water supplies, and the distance to export ports and energy markets. In this paper, we present an economic model that incorporates assessments of these regional factors to identify areas of high economic potential for hydrogen production { the so-called \Economic Fairways" for such projects. In doing so, the model provides a tool that can be used to inform investors and policy makers on the available opportunities for hydrogen development and their infrastructure requirements. The model includes analysis of the regional economic potential for both blue and green hydrogen projects. It accounts for hydrogen production from renewable (wind and solar) sources, as well as non-renewable sources (steam-methane reformation and coal gasification) combined with carbon capture and storage. Results from case studies conducted with the tool are presented, illustrating the potential for hydrogen production across Australia. Citation: Stuart D.C. Walsh, Laura Easton, Zhehan Weng, Changlong Wang, Joseph Moloney, Andrew Feitz, Evaluating the economic fairways for hydrogen production in Australia, International Journal of Hydrogen Energy, Volume 46, Issue 73, 2021, Pages 35985-35996, ISSN 0360-3199, https://doi.org/10.1016/j.ijhydene.2021.08.142.