Towards Zero Emissions: Decarbonising Transport
As Australia looks to hydrogen for its future, there is an opportunity to create a domestic market by moving towards electric and hydrogen-powered heavy vehicles for transport, which consume far more fuel and enable economies of scale.
“The factory of the future will have only two employees, a man and a dog. The man will be there to feed the dog. The dog will be there to keep the man from touching the equipment.”
That was a prediction of Warren Bennis, a pioneer of leadership studies. It’s a humorous hyperbole. But after the initial chuckle, we may realise that with today’s drive towards automation and advanced manufacturing, the reality may not be far from the prophecy.
The rate of change, fuelled by innovation, is accelerating faster than ever. Let’s imagine joining the ranks of a national think tank and asking, what will Australia look like a decade from now? Or by 2050? What will our society, economy, politics, technology, military and national security look like by then?
Despite the economic challenges thrown at us by COVID-19, Australia – among the world leaders in nominal GDP – enters the post-pandemic recovery period in an enviable position.
Principally, we owe our national wealth to an abundance of natural resources. We are the leading producer of iron ore, exporting almost three times more than second-placed Brazil, and we’re number one for coal. Australia also recently overtook Qatar as the world's top exporter of liquefied natural gas (LNG).
Nonetheless, we need to grasp the fact that our reserves of these natural resources are finite. Although our deposits of coal should last for about another 120 years, and our natural gas for perhaps another 50, climate change concerns, geopolitical pressures, the need for compliance with international treaties, as well as ethical landing and investment practices, could conceivably put an end to fossil fuels exploration before 2050. If that happens, we would still have our iron ore deposits, which are predicted to last for another 50 years, but that hardly makes them a guarantee of our long-term prosperity.
Where is the opportunity?
Today, coal and gas exports are worth more than $100 billion annually to the Australian economy. Unfortunately, our new zero-emissions industry, green hydrogen, will not be able to fill a gap of that magnitude. In the optimistic scenarios outlined in Australia’s National Hydrogen Strategy, it will be worth less than $2 billion annually by 2030 and less than $30 billion by 2050. That means we must keep looking for solutions elsewhere.
How can we supercharge our renewable industries?
The answer lies in the creation of domestic markets in which there are clear and immediate opportunities. We propose a Zero Emission Highway, designed to enable emission-free long-distance travel by equipping Australia’s major transport routes with battery electric vehicles’ (BEVs) recharging and fuel cell electric Vehicles’ (FCEVs) hydrogen refuelling facilities.
As the technology develops so rapidly, it is crucial to our successful transition to carbon-free transport that, rather than try to pick winners, we simultaneously support both battery- and fuel-cell-based transport. Although suitable for cars, the Zero Emission Highway is aimed at heavy transport, a major contributor to carbon emissions in Australia and worldwide. It is also designed to create massive demand for hydrogen: a private car might use 5 kg of hydrogen in a week; a truck can use 100 kg in two days.
Western Australia’s Zero Emission Highway would focus on heavy transport, helping to lower the cost of hydrogen fuel, which could eventually represent a secure fuel supply, eliminating the need to import diesel. Phase 1 would run along Highway 95 from Perth to Port Hedland, linking the state capital with the Pilbara region. Subsequent stages would lead to an expansion of the Zero Emission Highway across the state and beyond along Highway 1, the longest national highway in the world.
Focusing the Zero Emission Highway on heavy transport rather than passenger vehicles sets up a high demand for hydrogen and, therefore, an economy of scale and subsequently lower costs. A hydrogen car can fill up on 4-6 kg of hydrogen, while a commercial truck would need about 20 times more. Earlier hydrogen highways in Norway and California relied on passenger cars to create demand. Australia is in a unique position to profit from a once-in-a-lifetime confluence of technological innovation and global market shifts, and thus the beginning of hydrogen-powered heavy haulage.
As batteries have gained acceptance as the future for domestic vehicles, hydrogen has emerged as the ideal fuel for long-haul vehicles.
Over two millennia ago, Plato taught Aristotle that necessity is the mother of invention. In other words, if you are lacking in brawn, you had better start using your brain, especially when others around you are doing just that.
Peter Kasprzak is the co-founder, Director and former CEO of Innovate Australia, and the convenor of the Hydrogen Society of Australia.
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