HydrogenHype, hope, or hard work?Tony Wood, Alison Reeve, and Richard YanDecember 2023Hydrogen: hype, hope, or hard work?Grattan Institute SupportFounding members (2009)Endowment SupportersThe Myer FoundationNational Australia BankScanlon FoundationSusan McKinnon FoundationAffiliate PartnersOrigin Energy FoundationScanlon FoundationSusan McKinnon FoundationThird Link Growth FundSenior AffiliatesCuffe Family FoundationMedibank PrivateTrawalla FoundationWesfarmersAffiliatesAllensAshurstBoston Consulting GroupMaddocksMcKinsey & CompanyPEXAUrbisWestpacGrattan Institute Report No. 2023-13, December 2023This report was written by Tony Wood, Alison Reeve, and RichardYan. Tarun Chowdhary, Bronwyn See, and Christina Grantcontributed early research.We would like to thank the members of Grattan Institute’s Energy andClimate Change Program Reference Group for their helpfulcomments, as well as numerous government and industryparticipants and officials for their input.The opinions in this report are those of the authors and do notnecessarily represent the views of Grattan Institute’s foundingmembers, affiliates, individual board members, reference groupmembers, or reviewers. The authors are responsible for any errors oromissions.Grattan Institute is an independent think tank focused on Australianpublic policy. Our work is independent, practical, and rigorous. Weaim to improve policy by engaging with decision makers and thebroader community.We acknowledge and celebrate the First Nations people on whosetraditional lands we meet and work, and whose cultures are amongthe oldest in human history.For further information on Grattan’s programs, or to join our mailinglist, please go to: www.grattan.edu.au. You can donate to supportfuture Grattan reports here: www.grattan.edu.au/donate.This report may be cited as: Wood, T., Reeve, A., and Yan, R. (2023). Hydrogen:hype, hope, or hard work?. Grattan Institute.ISBN: 978-0-6457978-5-5All material published or otherwise created by Grattan Institute is licensed under aCreative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License.Grattan Institute 20232Hydrogen: hype, hope, or hard work?OverviewHydrogen can help meet Australia’s emissions reduction targets andunderpin economic growth opportunities. But to date, governmentshave seemed more concerned with hyping Australia’s hydrogenprospects and hoping for the best, rather than doing the hard workto establish integrated industry policy for proportionate, targeted, andtimely support.The best way to seize the hydrogen opportunity is to make strategicchoices about its industrial applications that can leverage Australia’scomparative advantage in renewable energy resources and minerals,and build on existing export industries.The most promising uses of hydrogen are in the production ofammonia, alumina, and iron. These applications could use hydrogenefficiently and cost-effectively at a scale that could support a viable,long-term hydrogen...
