Perth’s Resources Technology Showcase 2019: Government, industry challenged on hydrogen energy future
Woodside Petroleum chief executive Peter Coleman has cast doubt on the future of hydrogen in the global energy mix but says governments must start exploring the possibility now if they believed in it.
Mr Coleman made the comments as part of a panel discussion of leading LNG industry representatives on securing the LNG legacy: lessons learnt and what is needed for WA to remain competitive on the world stage.
Hydrogen offers a potentially zero-emissions fuel when produced from renewable power like solar and wind.
The Federal Government announced last week it would invest $370 million into new hydrogen projects as part of a bid to bring down electricity prices and reduce emissions.
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The news came after Energy Minister Angus Taylor and the nation’s State energy ministers agreed to a National Hydrogen Strategy at the Council of Australian Governments meeting in Perth.
Woodside recently signed a deal with the Korea Gas Corporation to take a serious look at hydrogen’s large-scale viability.
But Mr Coleman warned the wide-scale commercial use of hydrogen as a fuel was still 10 to 15 years off.
“Hydrogen’s energy density is a lot lower than competing fuels, hydrogen molecules are very small so they like to escape the vessels that they’re in, so that’s an issue,” he said.
“And, of course, you need a market for it.”
However, he noted that Japan had created a market for LNG and he was confident they could do the same for hydrogen if it became their focus.
Mr Coleman said hydrogen would need to be complementary to the existing energy mix rather than replacing it.
He noted a single LNG train generated about 60 gigawatts of power, which by comparison would require a solar farm the size of the Greater Sydney metropolitan area.
“The energy intensity is still very, very high to make hydrogen,” he told the Seven West Media-hosted conference.
“I believe it is part of our future but it’s not an easy solution.
“If you really think it’s going to be part of the energy solution in 10-15 years’ time, you have to start now.
“You must understand how the market works and you must get more and more efficient in the making of the product.”
He said many of the skills and competencies required for hydrogen production and transportation were complementary to those of the oil and gas sector.
INPEX Australia boss Hitoshi Okawa said he believed hydrogen could be a game changer in terms of the global energy mix in the future.
Shell Australia country chair Zoe Yujnovich said the global energy mix of the future was about many people and many solutions.
“There is no one answer, there is no one person, there’s no one group, it’s not industry alone, it’s not government in isolation,” she said.
“Collectively, all of us will need to pursue many paths because there will be many things that we’ll need to do successfully to make a difference.”
Chevron Australia managing director Al Williams said he believed collaboration between all players would be the key to reducing the world’s carbon footprint.
But he noted that the evolution of energy in society had changed lives and extended life expectancy.
“Energy is essential to us today and energy is going to be essential to us tomorrow, but the composition of that can evolve,” Mr Williams said.
UnionsWA secretary Meredith Hammat said the transition to a new energy future needed to be managed, but she was optimistic about the jobs and opportunities that would be created.
Premier Mark McGowan told delegate at the conference he recently visited New Delhi to promote WA LNG and lithium on a day in which the Indian city recorded the highest smog levels in history.
“The idea that they (India) would turn off their coal-fired power stations is fanciful,” he said.
Mr McGowan said WA had a role to play in helping its neighbours to transition to lower emission economies but it had to be done co-operatively and reasonably.
“Taking a megaphone to these conversations and abusing our trading partners, probably isn’t the best way to do it,” he said.
In a wide ranging discussion, WA Department of Jobs, Tourism, Science and Innovation director-general Rebecca Brown said collaboration across government and industry was essential if WA was to capitalise on growing opportunities in emerging South East Asian economies.
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