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The way we power the world is undergoing its biggest shift since the 1950s. This makes it an exciting and challenging time to be an energy expert!
As we all confront human-caused climate change and transition towards renewable energy sources, the world’s best and brightest are busy developing innovative solutions. As it turns out, one forward-thinking idea is getting momentum here in Australia: green hydrogen renewable energy microgrids.
The idea is grounded in two concepts – green hydrogen and the importance of microgrid energy supply. Together, they could well pave the way to a more sustainable, climate-friendly future.
With the expertise of Deakin University’s Dr Saman A. Gorji to guide us, let’s get to the bottom of why green hydrogen microgrids could be the future of energy.
First things first – what is a microgrid? According to Gorji, a microgrid is a ‘small-scale power grid with control capability, meaning it can disconnect from the main utility grid and run independently when needed.’
This is different from a standard power grid, which uses power plants to distribute energy to large areas, such as a state or country.
Microgrids could be the future of energy management because, unlike the ‘monolithic’ national grid, microgrids can:
The point about microgrids integrating renewable energy is crucial because, for researchers like Gorji, it opens up some exciting opportunities. One idea is that microgrids could use renewable energy from Australian ‘green hydrogen’. But what exactly is green hydrogen? Gorji explains:
‘Green hydrogen refers to hydrogen fuel produced without greenhouse gas emissions, making it a clean energy carrier,’ he says. ‘In practice, this means generating hydrogen gas (H₂) by splitting water molecules via electrolysis, using electricity from renewable sources like wind or solar. Because the electricity comes from renewables, no carbon dioxide is released in the process – the only byproduct of splitting water is oxygen.’
Microgrids aside, using hydrogen for power isn’t a new concept, but it’s the green aspect that makes this approach so intriguing. Other forms of hydrogen include ‘grey’ (produced from natural gas in a carbon-emitting process) and ‘blue’ (similar, but with some carbon captured).
You probably think of hydrogen as a gas, but it can also be a liquid or chemically bound to other materials, like metals. These three states – compressed gas, liquid hydrogen and material-based storage – are the main methods currently used for storing hydrogen (whether green, blue or grey) until needed.
How green hydrogen is stored can really depend on factors like cost and infrastructure. Currently, the most common way to store our Australian green hydrogen for use in renewable energy microgrids is as a compressed gas.
‘Compressed hydrogen tanks are commonly used in microgrid applications for their simplicity and proven design, as seen in pilot projects where excess solar power produces hydrogen stored in cylinders for later use,’ Gorji says.
Green hydrogen in Australia could be a game-changer in microgrids because it has the potential to boost the benefits of traditional renewables like wind and solar.
‘One significant benefit [of green hydrogen] is its role as high-density energy storage,’ says Gorji. ‘Essentially, excess solar or wind power can be used to produce hydrogen (via an electrolyser) and that hydrogen can be stored for long periods.’
While this sounds promising on paper, there are some definite challenges when it comes to getting green hydrogen integrated with renewable energy microgrids.
At present, Australia’s green hydrogen isn’t cheaper than fossil fuels or blue/grey hydrogen because using renewable power for the electrolysing process is still expensive, although there are some government incentives.
‘To put it in perspective, producing hydrogen from fossil fuels can be 1-2 US dollars per kilogram in some regions, whereas green hydrogen might range around 3-6 dollars per kilogram,’ he says.
However, as renewable energy prices drop, electrolyser technology improves and other innovative breakthroughs occur, the cost of producing green hydrogen is expected to become a lot more affordable.
‘Many countries, including Australia, are investing heavily to bring green hydrogen costs down to a competitive level – often cited as the “H₂ under $2” goal,’ says Gorji.
Making green hydrogen is one thing, but how do we get it where it needs to be? When green hydrogen needs to be transported, there are currently four main methods:
While some of these methods are suitable for large scale hydrogen projects or hydrogen export, as Gorji has mentioned, we’re currently more likely to see green hydrogen transported as a compressed gas for renewable energy microgrid applications.
Like all energy infrastructure, Australian hydrogen (green and otherwise) is regulated by the government and industry agreements. The key framework guiding this is the government’s 2024 National Hydrogen Strategy, which is designed to ‘guide Australia’s production, use and export of hydrogen.’
For renewable energy microgrids using green hydrogen in the future, complying with all rules and regulations will be essential.
Clearly, green hydrogen has big potential for energy production in general – and Australia is definitely leading the charge. But, when it comes to renewable energy microgrids, there are plenty of great opportunities coming our way.
There’s more to electricity than just generating it and sending it. The energy grid itself needs a careful touch, known as ‘grid balancing’. Too much supply can cause instability, while not enough can lead to brownouts or blackouts.
With green hydrogen microgrids, the idea is that excess renewable power can be used to produce and store green hydrogen, which can then later be converted to electricity to pick up any slack. ‘If a microgrid has too much solar at noon, an electrolyser can store that energy as hydrogen, and later a fuel cell can stabilise the microgrid’s supply when solar or wind output dips,’ says Gorji.
Australia exports a huge amount of energy-producing coal and gas, but we also import most of our petroleum. The definition of energy independence is a bit of a controversial topic, but if we take it to mean generating all Australia’s power with domestic resources (and not importing any), we’re not quite there yet.
While Gorji is clear that green hydrogen microgrids won’t power Australia, microgrids can certainly offer energy independence for Australian communities. ‘Microgrids empower communities or campuses to have more control over their energy,’ he says. ‘They can choose their generation mix (like going heavy on renewables), manage usage with smart controls and even operate independently if energy prices on the main grid spike.’
Contributing to the decarbonisation of Australia
Decarbonisation is a huge talking point right now, and renewable energy sources like green hydrogen have serious potential to reduce Australia’s reliance on carbon-emitting fossil fuels.
When it comes to decarbonising the country, Australian green hydrogen microgrids can play a key part in four ways:
The path is clear: using green hydrogen in renewable energy microgrids can be an important part of Australia’s decarbonisation journey and transition to fully renewable energy. However, to make this a reality, Australia needs to significantly boost hydrogen infrastructure, scale up local manufacturing of key components, ramp up investment and – just as importantly – develop local skills and expertise.
While it may not happen overnight, with enthusiasm, commitment and a focus on upskilling, Australia could very well take the lead in green hydrogen energy microgrids.