Hydrogen as a potential universal fuel is rapidly gaining traction in Australia.
That the small chemical element could be used to store and even export renewable energy has recently been well publicised (see also our dossier The comeback of hydrogen).
However, hydrogen could also be integrated in the gas industry to decarbonise the Australian energy sector.
This is the core message of a new report released by Energy Networks Australia which looks at the role the gas industry could play in reducing greenhouse gas emissions.
The report points out that major changes to the energy will be needed to address the ‘trilemma’ of balancing environmental outcomes, energy security and energy affordability.
Gas is the least carbon intensive fossil fuel, and it is estimated that its use in Australia's power generation will at least triple by 2030 to achieve Australia’s emissions reduction target of 26% to 28% below 2005 levels.
However, the Gas Vision 2050 report acknowledges that Australia’s gas sector will also need to reduce its overall emissions intensity, and better leverage the existing gas infrastructure currently supplying 6.5 Australian homes.
To this end, the report proposes three transformational technologies that stand out as options to be integrated with natural gas:
For biogas the report finds a significant potential, and there are no technical obstacles to its production, such as from waste, and its injection into the gas distribution network.
The outlook for CCS technology is mixed. While it has been commercially demonstrated, its global deployment has been slow. The report notes, though, that according to the International Panel for Climate Change the use of CSS will be crucial to achieve the Paris target of 450 parts per million CO2.
In Australia, several major projects are in the process of exploring its potential.
For hydrogen the report finds that a centralised production from natural gas, in a process called steam reforming, could provide a powerful option, especially in combination with CSS to capture CO2 set free in the process.
The clean burning hydrogen fuel could either supplement or replace methane in gas networks and used in fuel cells to produce both electricity and heat in domestic and industrial settings.
The economic viability of adapting existing gas infrastructure to distribute hydrogen has been shown in several sudies around the world, including for the city of Leeds in the UK (see The comeback of hydrogen).
This is also an option for Australia.
Alternatively to steam reforming of gas, hydrogen can also be generated through the electrolysis of water using renewable energy sources, which thus could be stored for on-demand consumption. An international example is the 2 megawatt power-to-gas demonstration plant, a world first, in Germany’s Falkenhagen.
The report concludes that while all three options require further R&D and demonstration, they provide a feasible pathway for natural gas to be used in a net-zero emissions economy.
Their development should be encouraged through a technology neutral policy setting to obtain an optimal energy mix in terms of cost-effectiveness, energy security and environmental outcomes by 2050.
In addition to steam reforming gas, hydrogen can also be generated through the electrolysis of water using renewable energy sources. This way excess renewable energy can be stored for longer periods and delivered to consumers on-demand. An international example for this is the 2 megawatt power-to-gas demonstration plant, a world first, in Germany’s Falkenhagen.
The report concludes that the three options provide a feasible pathway for natural gas to also play a part in a net-zero emissions economy.
Their development should therefore be encouraged through a technology neutral policy setting that aims for an optimal energy mix in terms of cost-effectiveness, energy security and environmental outcomes by 2050.