Ammonia producers dominate hydrogen pilot projects in Australia

April 2020


Ammonia producers dominate hydrogen pilot projects in Australia



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RenewableCube: Up to date, detailed, and comprehensive database of solar, wind and storage assets in Australia, India and SE Asia

Renewable product updatesIn March 2020, 13 Australian assets were added to the RenewableCube, accounting for 5,366 MWac of capacity. Of the 13 new projects, five are wind, four are PV and four are hydrogen electrolysers. Data for a further 20 projects, representing 6,110 MWac, was updated.

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As the Australian Hydrogen (H2) market matures, industry players are entering the “foundation and demonstration” phase with ammonia producers dominating the country’s Helectrolyser development pipeline. The Australian National H2 strategy, which was released in November 2019, details Australia’s path to becoming a top Hexporter. In the short term (2020‒2025), the government plans to provide assistance in developing H2 projects in Australia to de-risk the technology and allow the industry to scale up, reducing cost. South Australia has been the most proactive location, as the only state to have granted more than A$10 million in funding to pilot H2 electrolyser projects. The pipeline of pilot electrolyser projects in Australia currently totals 703 megawatts (MWac), with the majority of this capacity (405 MWac) attributed to ammonia producers looking to use H2 to create green ammonia.

Conditions are likely to worsen before they get better for existing generators

New South Wales (NSW) is emerging as a renewable development leader thanks to a large pipeline of projects located in areas of moderate to high system strength, which are expected to take root over the next 12 to 18 months. The total pipeline in Queensland, Victoria and New South Wales of pre-financial-close renewable projects in areas of moderate to high system strength totals a whopping 21.2 gigawatts (GWac), most of which will be located in NSW which boasts around 12.5 GWac of this capacity. Assets in Northwest Victoria and western New South Wales have been especially affected by system strength issues, with the five solar farms in the region facing an export constraint of 50% of max capacity. Assets already committed may face worsening conditions, as Rystad Energy calculates that only 31% of utility PV and 38% of wind assets under construction or operating are located in areas of moderate to high system strength.

Bright future for battery storage in India after SECI’s record-breaking tender

With ambitious renewable energy targets in place, the rapid growth of India’s nascent wind and solar market will depend upon the implementation of grid stabilization measures as an increasing amount of generation will come from non-conventional sources. Rystad Energy expects this will arrive in the form of Battery Energy Storage Systems (BESS). The Solar Energy Corporation of India (SECI) made huge strides recently when it awarded the world’s largest, 1.2-gigawatt (GW) renewables-plus-storage tender. Yet much remains to be done if the country is to meet its goal of installing 175 GW of renewable energy by 2022 and 450 GW by 2030. In order to achieve these targets, our recent analysis suggests that India’s BESS market will swell to 6 gigawatt-hours (GWh) of storage capacity by 2024, up from the country’s currently installed 13 megawatt-hours (MWh).