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The global demand for hydrogen is expected to grow exponentially over the coming years. Specifically, the hydrogen market is projected to expand at an average CAGR of 9.2% from 2020 to 2025 — seeing an increase from US$130 billion to US$201.
Hydrogen in the Asia Pacific region is expected to grow at a faster rate than the global market, with a CAGR of 10%. Currently, the market maintains a value of US$93 billion and remains a focal point for Australia and its western partners.
The driving force behind this is the global shift in demand for clean energy. This change in attitude has led to an increase in the need to minimise greenhouse gas emissions, long term power storage, mobile energy generation, and a rise in the necessity for hydrogen fuel cell vehicles.
Given the consensus amongst Australia’s primary western trade partners to commit to decarbonisation by 2050, hydrogen is expected to play a key role in the future of the global energy market. Considering Australia’s reputation for exporting high-quality resources, it is well placed to capitalise on the global demand for hydrogen across both the Asian Pacific and global energy markets.
The Australian Commonwealth Government has prepared a roadmap detailing its emerging hydrogen export industry. The National Hydrogen Strategy provides key opportunities, funding, and approaches for Australia’s production of hydrogen both domestically and internationally.
Research conducted by AECOM, a multinational American engineering firm, stipulates the average cost of electricity produced by diesel generators in regional and remote communities is AU$450 per MWh. The implementation of hydrogen as a replacement for diesel generators would result in a dramatic reduction in this cost, to approximately AU$100 per MWh.
Syngas (otherwise known as synthesis gas) is an extremely rich portion of hydrogen and is a viable replacement for another non-renewable resource, natural gas. Syngas provides a more cost-effective and efficient alternative to natural gas, presenting a unique opportunity for hydrogen to enter the market. The value of the syngas market is expected to reach an estimated value of US$66.5 billion by 2027.
The automotive vehicles industry is another sector hydrogen is set to transform. In Australia, significant investments in refueling stations are being made by State and Federal governments, while multinational companies, such as Toyota and Hyundai, are also funding similar infrastructure.
With the increased demand from Australia’s key trading partners (such as Germany, Japan, the UK, South Korea, Italy, France and China) hydrogen production is predicted to generate over AU$10 billion for the local economy by 2040.
The CSIRO has reported forecasts Australia will export approximately 3.8 million tonnes of hydrogen to South Korea, China, Japan, and Singapore by 2030. It is also expected Japan will import up to 10 megatonnes per year by 2050.
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Pioneer Aerospace H2 is committed to helping Australia transition to sustainable, reliable, and cost-effective energy production through cutting-edge hydrogen technology