Green Hydrogen – Opportunity or hype?

Green hydrogen emerges as a critical enabler for Australia's energy transition and a potential multi-billion dollar export.

Vinay Chhoda · Venture Insights1 November 2017Period: November 20178 min read

Last updated 8 June 2026

A$39bn→

Australian electricity market value (2017)

5,000↑

Potential exajoules of renewable electricity generation in Australia

Locked

+2more stats

Companies covered:HyundaiAlstomSiemensAquaHydrexCSIROARENA

Abstract

This report analyses the potential for green hydrogen to transform Australia's A$39bn electricity market. As large-capacity fossil fuel generators reach the end of their economic lives, hydrogen offers a clean, flexible option for overcoming intermittency in renewable energy. The analysis explores four key transformation areas: network integration, industrial electrification, export market development, and natural gas network decarbonisation. While long-term benefits are compelling, significant hurdles remain regarding infrastructure investment, policy coordination, and the current high cost of extraction via electrolysis.

Key Takeaways

Australia's A$39bn electricity market is entering a decade-long transition as fossil fuel assets reach economic end-of-life.
Green hydrogen acts as a critical enabler for renewable integration, solving intermittency issues by storing surplus energy.
The Australian gas network offers a 'bottomless battery' storage capacity equivalent to 6 billion household Li-ion batteries.

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Frequently Asked Questions

The A$39bn Australian electricity market is entering a decade-long structural shift as major fossil fuel generators reach the end of their economic lives. Green hydrogen is the primary candidate to manage the intermittency of renewable sources, which have already reached 50% penetration in South Australia.

Hydrogen offers a scale of energy storage that far exceeds current chemical batteries, with the existing gas network capable of holding the energy equivalent of 6 billion household Li-ion batteries. This capacity is essential to unlocking Australia’s 5,000 exajoules of potential renewable electricity generation.

The cost of extraction via electrolysis is not declining fast enough to support widespread commercial use without significant capital-intensive infrastructure investment. Furthermore, the sector lacks a coordinated policy framework, trailing international initiatives like the UK Government’s GBP23m fund for hydrogen vehicle infrastructure.

Green Hydrogen – Opportunity or hype?

Abstract

Key Takeaways

Frequently Asked Questions

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