"While the hydrogen itself emits no carbon when used, the cheapest way to produce it right now does.Those preparing Australia's hydrogen strategy recognise the need to reduce emissions to combat climate change, and are only considering options using fossil fuels if they come with carbon capture and storage (CCS)."
https://www.abc.net.au/news/2019-10-31/hydrogen-strategy-fossil-fuels-versus-renewables/11653336
Dr Soderbaum said ultimately the market would decide whether Australia's hydrogen sector got off the ground."At the end of the day, the actual demand for Australian hydrogen will be determined by factors such as the economic competitiveness of our supplies versus those of competing suppliers of hydrogen around the world and the extent to which it can be classified as low or zero-emissions hydrogen," he said.
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