Hydrogen ‘guarantee of origin’ scheme trials in Australia

The Australian government has launched a trial of a scheme to assure the source of locally-produced hydrogen and its derivatives.

The scheme is designed to measure and track emissions from hydrogen production, as well as the type of technology used to manufacture the hydrogen.

The aim is to enable future customers to make informed choices about the source and emissions associated with the hydrogen they buy – similarly to such schemes that have been introduced for renewable energies.

It also should provide a guarantee that green hydrogen when it emerges is genuinely ‘green’.

The introduction of a ‘guarantee of origin’ scheme was identified as an early priority action item in Australia’s hydrogen strategy, with the trial following on from a public consultation.

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In broad terms the proposal is to introduce an initial international certification scheme tracking production technology, scope 1 and scope 2 carbon emissions and production location.

The scheme could be expanded later to include factors such as water consumption, enabling tailoring for regions or even countries. With no such scheme in operation so far the Australian scheme has the potential for wider implementation globally.

Minister for Industry, Energy and Emissions Reduction Angus Taylor says industry feedback indicated that a local scheme must be internationally aligned and accepted by the country’s trading partners.

“This will enable customers who buy Australian hydrogen in the future to make an informed choice and easily identify the product best suited to their needs,” he says.

“An Australian guarantee of origin scheme will promote our local, comparative advantages, while placing Australia in a position to shape the global trade of hydrogen.”

In the trials industry members with operating or well-advanced pilot projects for hydrogen will test the practical application of methodologies for carbon emissions over an 18-month period.

This will include projects across a range of production methods, including renewable electricity, biomethane and coal and gas with substantial carbon capture and storage.

The design of the scheme is being informed by work through the international collaborative, the International Partnership for Hydrogen and Fuel Cells in the Economy (IPHE), to agree an international methodology to track carbon emissions from hydrogen production.

Hydrogen strategy

Australia’s national hydrogen strategy released in 2019 is aimed to position the country as a “major global player” by 2030. A key element is to create hydrogen ‘hubs’ in various locations as clusters of large-scale demand, from which the industry can springboard to scale.

Seven prospective locations across Australia have been identified and include Bell Bay in Tasmania, Darwin in Northern Territory, Eyre Peninsula in South Australia, Gladstone in Queensland, Latrobe Valley in Victoria, Hunter Valley in New South Wales and the Pilbara in Western Australia.

So far the government has made available Au$464 million (US$331 million) in grants to advance the development of the hubs.