Evaluating the Economic Potential for Geological Hydrogen Storage in Australia

Abstract

Australia has ambitions to become a major global hydrogen producer by 2030. The establishment of Australia’s and the world’s hydrogen economy, however, will depend upon the availability of affordable and reliable hydrogen storage. Geological hydrogen storage is a practical solution for large scale storage requirements ensuring hydrogen supply can always meet demand, and excess renewable electricity can be stored for later use, improving electricity network reliability. Hosting thick, underground halite (salt) deposits and an abundance of onshore depleted gas fields, Australia is well placed to take advantage of geological hydrogen storage options to support its ambition of building a global hydrogen hub export industry. Using the Bluecap modelling software, we identify regions in Australia that are potentially profitable for large scale hydrogen production and storage. We use the results of this work to suggest high-potential regions for hydrogen development, supporting policymaker and investor decisions on the locations of new infrastructure and hydrogen projects in Australia.