Blue hydrogen is produced from natural gas feedstocks, with the carbon dioxide by-product from hydrogen production captured and stored. However, the process is not emissions free.
Green hydrogen is made using electrolysis powered by renewable energy to split water molecules into oxygen and hydrogen, creating an emissions free fuel.
“They’re different technologies, with different commercial propositions as a result,” he said.
“It may be, for example, that blue hydrogen plays a stronger role in the short term, and green hydrogen in the medium-to-long term. In any case, we should be honest, clear-eyed, and evidence-based, not ideological in either direction.”
Industry response
In response to Bowen’s comments on Friday, the head of the Australian Petroleum Production & Exploration Association (APPEA) cited a recent EnergyQuest report which noted that blue hydrogen offered a greater potential for near-term decarbonisation compared to green hydrogen, with the latter currently more expensive to produce.
“Hydrogen is an immense opportunity for Australia to fast-track its transition to a lower emissions economy but all types of hydrogen should be in the mix when discussing a cleaner energy future,” APPEA chief executive Andrew McConville said.
“An Australian hydrogen industry and a local market could generate significant opportunities for the country. Australia’s upstream oil and gas industry is well placed to assist in the development in one of the pathways to a large-scale and innovative commercial hydrogen industry. This is both in using natural gas to produce hydrogen and using gas infrastructure to process and transport hydrogen.”
McConville highlighted the success of Australia’s LNG export industry, claiming that it could build on its technology, expertise, commercial and trade relationships to make Australian hydrogen exports a reality.
“This means Australia is well placed to capitalise on our already abundant natural advantage. Hydrogen is already being produced from Australian LNG exports,” he added.
"Developing a local hydrogen industry could enable lower emissions both in Australia and internationally, reduce energy costs, deliver energy security, together with new employment and manufacturing opportunitis.
