Is hydrogen Asia's new energy commodity? Opportunities and challenges for Australia

Can hydrogen really be the next big energy disruptor? The technological challenges are significant and have suppressed its presence in the energy transition story thus far, but this is changing fast. The hydrogen market faces a chicken-and-egg conundrum. Demand growth remains limited, hindered by uncertainty over supply and cost. But investment in hydrogen supply is restricted by ambiguity over its role in the future energy mix. Nonetheless, government policy and funding in Japan, China and Korea is creating new demand centres. Will the breakthrough be in power generation, transportation or energy storage? The costs associated with hydrogen production and transportation are its biggest hurdles. But new technologies around liquid organic hydrogen carriers and ammonia are emerging. How is this hydrogen+ philosophy evolving, and could it be a future competitive advantage? Over the past decade, we have already seen how new technology has rapidly reduced other renewable energy costs. We outline our view on whether the same could happen with hydrogen. So, where does Australia fit into this picture, and what is its competitive advantage? Australia is well endowed with natural resources, many of which can reliably generate renewable energy. And with numerous ongoing hydrogen pilot programs, it is uniquely positioned to innovate and export green hydrogen know-how. Can Australia become the global laboratory for hydrogen supply-chain technology? Local upstream companies could be catalysts for change, given their existing producer–supplier relationships across north-eastern Asia. What role could hydrogen play in the future upstream portfolio?