The Aussies had their very own panel dialogue, their very own espresso stall, and there was an Australian participant on the principal stage in roughly each second plenary session.
It was a press release of intent. “We are going to be a major hydrogen superpower in our own region,” Australian Hydrogen Council CEO Fiona Simon instructed the convention flooring.
And Rotterdam was the place to make that assertion: the Russian invasion of Ukraine has turbo-charged Europe’s push to flee their dependancy to the Kremlin’s politically poisonous provides of fuel, oil and coal.
And with stretchy EU local weather targets looming in simply eight years, the substitute must be inexperienced hydrogen, which is made utilizing renewable power.
“Our demand is huge,” German hydrogen tsar Stefan Kaufmann instructed the summit, forward of a visit to Australia subsequent week. “We need to find those countries which are able to produce fast, and in big figures.”
Ryan Willemsen-Bell, future fuels supervisor at Origin Energy, says the change is palpable.
“Up until a couple of months ago the dominant area would’ve been the Asia-Pacific — Japan and Korea. Easier shipping routes, easier to get a product there, and in timeframe terms a bit ahead of Europe,” he says.
“We feel that has changed even in the past few months. Europe has emerged as a more interesting market, and probably more willing to look at the export opportunities.
We are going to be a major hydrogen superpower in our own region.
— Australian Hydrogen Council CEO Fiona Simon
“Conversations are centring around industry being crippled if it can’t move away from Russian gas, and whether hydrogen can fill this in some way.”
The Australian stand was a hotbed of networking, as Europeans and Australians sized one another up. The search was on for purchasers, expertise collaborators, infrastructure companions, traders, suppliers.
“There’s a strong momentum in developing export supply chains between Australia and Europe. There has been a strong government push behind this, from both sides,” says Tom Campey, chief business officer at start-up electrolyser producer Hysata.
“That extends beyond the export supply chain to supporting supply-chain innovation between the two sides. Australia and Europe are the two leading geographies in this sector, so it makes sense for them to be working together.”
Woodside’s vice-president of expertise, Jason Crusan, agrees: “Europe is very significant for us. It’s an important marketplace, they are a thought leader and policy leader that will help drive international standards.”
Ripe or hype?
But hanging over this flurry of collaboration, and over the summit at giant, was an unavoidable and nearly unanswerable query: is that this actual, or is that this hype?
Is all of it convention speak, swapped enterprise playing cards and non-binding bits of paper? Or is a hydrogen revolution, with Europe and Australia in the vanguard, already gathering tempo?
The summit appeared to lace effusive enthusiasm with unstated uncertainty.
Paul Bogers, vice-president of hydrogen at Royal Dutch Shell, captured the dichotomy when he referred to as hydrogen “the Swiss army knife of the energy transition”.
Like a superb Swiss military knife, he mentioned, hydrogen isn’t low cost. “The third or fourth conversation with any customer is on affordability, and how you walk further down the cost curve,” he instructed conference-goers.
“All of that needs a tremendous amount of innovation … The level of investment that will have to go into R&D and innovation in hydrogen is still massive.”
Hydrogen can also be like a Swiss military knife, he mentioned, in that while you first look at shopping for one you don’t at all times know which of its instruments you’re going to finish up utilizing most.
How hydrogen shall be used, how will probably be transported, how a lot it would value — all of this stuff are nonetheless hazy, making it exhausting to gauge value, danger and return.
“It’s a bit like when people talk about eating an elephant and you need to take your first bite. I feel like we’re still kind of walking around the elephant,” the Australian Hydrogen Council’s Simon says.
“We’re still so pre-commercial, that the economic gap is too great for anyone to take that level of risk with their shareholders’ funds, and reasonably so. I don’t think markets create themselves at a loss.”
Chicken and egg
Many of these in Europe who may need to purchase inexperienced hydrogen are ready for a reputable provider with a transparent worth. Many of those that may provide the hydrogen are ready for a totally dedicated purchaser.
Little marvel that offtake agreements should not but on the desk.
“I do hear the enormous enthusiasm … but I do hear a common refrain of, we’re waiting for something,” Simon says.
“And I’m just trying to understand, what are we waiting for? Let’s work that out, let’s name it, and then let’s start tackling it.”
West Australia’s hydrogen minister Alannah MacTiernan, who was additionally in Rotterdam, mentioned her authorities was considering exhausting about the best way to nudge demand and facilitate provide.
“We are aware of the problem that we’ve got all these horses at the starting gate, and how do we get them through it?,” she instructed the convention flooring.
Some of Perth’s coverage work is about build up a home base, and she or he’s additionally eager to draw not simply patrons but additionally German funding and know-how.
MacTiernan is passionate about Berlin’s proposal for an interim “double auction” system, by which the German authorities buys excessive on the worldwide market and sells low to its personal trade, with the taxpayer sporting the losses till the value comes down.
Campey says some sort of public subsidy shall be wanted to get the nascent trade by to 2030, by which era “we should be at the races”.
Origin’s Willemsen-Bell reckons, although, that momentum may ramp up extra rapidly than anticipated.
“If a customer says we’d ideally like to see production in 2026 or 2027, then given the time frames for that to occur, you’d need to move to a decision and be turning soil pretty quickly,” he says. He suggests firms may have to get right into a place to try this “over the next 12 to 18 months”.
But first the patrons need to commit. “It would be a brave call to build a production facility without a significant proportion of your production having some form of home,” he says.
Getting actual
The Europeans clearly need Australia’s inexperienced hydrogen. The query is whether or not and once they’ll be really prepared for it.
“We can provide reliable, competitive green hydrogen. … but at the end of the day it is consumers who need to pick it up. They need to reconsider their processes, their fleets, their applications,” says Ivo Bols, president for Europe and Africa at US hydrogen producer Air Products.
Woodside’s Crusan says energy turbines might be able to discover methods to decrease the capital value of becoming a member of the hydrogen bandwagon.
They can retool their crops in a phased vogue, steadily bringing ammonia into the combine; they usually can section their shift from gray hydrogen (produced with carbon emissions) to blue (produced with carbon seize) then inexperienced.
He says hydrogen producers, in the meantime, can do what Woodside is doing and add electrolyser capability in a modular vogue, which avoids a full-scale dedication to probably costly expertise that would grow to be outdated in a short time.
Marcel Galjee, managing director of Macquarie-backed electrolyser maker HyCC, says the evolution of the hydrogen market shall be incremental, and suppliers and clients might want to work collectively.
“It will be large-scale. But large-scale tomorrow, and cheap and easy? That is not what we’ll find. It will be hard work. It will require a lot of commitment, it will require support from a lot of players in the value chain. There will be a lot of learning along the way. But we’ll get there.”
Woodside’s Crusan says Australians who need to seize the European alternative may have to work exterior their major area of interest, serving to to develop the entire provide chain.
“We couldn’t export LNG into Japan until there were import terminals in Japan. You can’t export Australian energy into Europe unless there are import terminals,” he says.
“Whether we own them, or a consortium owns them, or a port owns them — all those answers could be OK, but it just has to happen. You have to play across the entire value chain to make the future happen.”
If hydrogen lives as much as the hype in Europe, Australia’s intensive advertising and marketing push may begin to pay dividends.
But as an Aussie export success story, there’s nonetheless a method to go earlier than inexperienced hydrogen turns into the new flat white.
How Australia took centre stage at the world’s hydrogen jamboree & More Latest News Update
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