Ann: Hazer CDP Project Update, page-9

Around the world

Russia is planning to export 200,000 tonnes of hydrogen a year within three years, and 2 million tonnes a year by 2035. That probably makes it one of the less ambitious players in the burgeoning new world of hydrogen.

Saudi Arabia, Russia’s fellow COP26 bad boy, aims to export 4 million tonnes of blue hydrogen from its $US110 billion ($150 billion) Jafurah gas development, and also plans to make green hydrogen and green ammonia at a $US5 billion facility at its sci-fi city Neom.

The United Arab Emirates produces 300,000 tonnes a year of hydrogen already, but wants to use natural gas with CCS to make blue hydrogen for the Japanese and Korean markets.

But the UAE is also betting on green hydrogen, with its Dubai Electricity and Water Authority and German conglomerate Siemens collaborating on a solar-driven electrolysis facility that will serve as a demonstration plant.

For the Middle East, as for Australia, it’s all about developing an export market. Little wonder that coal-dependent, non-nuclear Germany has forged hydrogen partnerships with both the UAE and Australia, as Berlin hunts for a magic ingredient to add to its renewables-focused energy mix.

It’s a chicken-and-egg problem: not many businesses are using hydrogen yet, so it’s hard to get supply up and running. But until there’s plentiful supply and the cost drops, not many businesses will use it.

Blue v green

ARENA’s Miller counsels against getting hung up on the blue versus green debate. He says governments need to look at “how to make those two things happen together, rather than fighting against each other ... the common enemy is greenhouse gases”.

Macquarie Asset Management’s head of real assets in Europe, Martin Bradley, agrees, saying blue is a complement to green, not a competitor.

“There is so much methane demand that we can’t replace it with green hydrogen tomorrow. It will be a migration, a dynamic picture,” he says.

“We need to get away from the concept of technologies being in competition. We’ve got so much to do, all these technologies have a role to play, and over different time periods.”