Blue hydrogen from CCS is a con with a big carbon footprint

Hardly a day goes by without controversy over hydrogen and its role in making Australia a renewable energy exporting superpower. It’s not surprising, given that there is a $2 billion Hydrogen Headstart program and the $6.7 billion Hydrogen Production Tax Incentive as part of the Albanese Government’s Future Made in Australia initiative up for grabs.

The fossil fuel lobby want to add these taxpayer funds to their bag of subsidies from the Federal government. ‘Australia’s subsidies to fossil fuel producers and major users from all governments totalled $14.5 billion in 2023-24,’ reported the Australian Institute following the Federal Budget in May this year. This includes funds provided to mining companies to use dirty diesel fuel when green alternatives are readily available.

Researchers Howarth from Cornell University and Jacobson from Stanford University published their peer reviewed paper ‘How green is blue hydrogen?’ in 2021. “Far from being low carbon, greenhouse emissions from the production of blue hydrogen are quite high, particularly due to the release of fugitive emissions,” they wrote.

This is consistent with analysis by Longden and team at our own Australia National University.

“We find that emissions from gas or coal-based hydrogen production systems could be substantial even with CCS [Carbon Capture and Storage], and the cost of CCS is often higher than assumed,” wrote Londen et al.

The proposition that the carbon intensity of CCS-derived (AKA ‘blue’) hydrogen could be as low as 0.8 kilograms CO2 per kilogram hydrogen produced is misleading and fanciful.

The federal and state governments have been investing over a billion taxpayer dollars in CCS technology for decades and we have zero to show for it. ‘Gorgon’ is the only operating CCS project In Australia, developed by United States oil and gas giant Chevron, has been a dismal failure operating at just a third of its capacity.

The Albanese government is right to set the bar for hydrogen companies wanting tax-payer funds at a level we know can be achieved – 0.6 kilograms CO2 per kilogram hydrogen produced.

Zero Carbon Hydrogen Australia has already independently certified that three projects across Australia are achieving this benchmark: ActewAGL hydrogen refuelling station in Canberra; Yara green ammonia plant in the Pilbara; and Frontier’s plant south of Perth in WA.

Former Prime Minister Malcolm Turnbull was correct when he said “carbon capture and storage technology is a con and scam.”

IEA executive director Faith Birol was also right when he said in 2024 “One of the techniques Australia pushed, not just Australia but many countries, but didn’t get the result that they hoped for, is carbon capture and storage.

“For me it is a very vital technology, but the story of carbon capture and storage is a story of disappointment. It’s such a pity,” he said.

The world must drastically reduce carbon emissions as much and as fast as we can. Let’s hope our governments don’t get conned into giving more taxpayer funds to fossil fuel companies to increase carbon emissions.

Professor Scott Hamilton is adjunct associate professor, Department of Chemical & Biological Engineering, Monash University and senior advisor to Smart Energy Council (Australia).