❓ Hon Robin Scott questions the Minister for Regional Development on the cost of hydrogen versus fossil fuels, following up on a previous question regarding hydrogen production costs. The Minister acknowledges the cost difference but highlights hydrogen's increasing competitiveness and environmental benefits, urging the questioner to support renewable energy initiatives.
AnsweredQoN 628Legislative Council
QuestionView source ↗
ASIAN RENEWABLE ENERGY
HUB
628. Hon ROBIN SCOTT to the Minister for Regional Development:
Following the minister's
answer to question without notice 603, asked on 11 June 2019, stating that
hydrogen can be produced using wind or solar photovoltaic for $11 per kilogram,
I ask the minister to confirm the current prices, not including excise or GST,
of the following.
(1) The cost of 100 megajoules of
energy in hydrogen is approximately $9.17.
(2) The cost of 100 megajoules of
energy in diesel is approximately $2.52.
(3) The cost of 100 megajoules of
energy in petrol is approximately $2.01.
(4) The cost of 100 megajoules of
energy in coal is approximately 34�.
HUB
628. Hon ROBIN SCOTT to the Minister for Regional Development:
Following the minister's
answer to question without notice 603, asked on 11 June 2019, stating that
hydrogen can be produced using wind or solar photovoltaic for $11 per kilogram,
I ask the minister to confirm the current prices, not including excise or GST,
of the following.
(1) The cost of 100 megajoules of
energy in hydrogen is approximately $9.17.
(2) The cost of 100 megajoules of
energy in diesel is approximately $2.52.
(3) The cost of 100 megajoules of
energy in petrol is approximately $2.01.
(4) The cost of 100 megajoules of
energy in coal is approximately 34�.
AnswerView source ↗
I thank the member for the question.
(1)–(4) Typically,
the energy cost of fuels is compared on a dollar per gigajoule basis. The
Department of Primary Industries and Regional Development advises that the
costs the member has quoted are roughly correct, except for petrol, which is
approximately $31 per gigajoule before excise and GST, or roughly $3.10 by the
member's measure.
A
more important metric for transport fuels is the cost per kilometre. For
example, the Council of Australian Governments' Energy Council's
August 2018 briefing paper, ''Hydrogen for Australia's Future''
states —
� A petrol car using 8 litres per 100 km at A$1.40 per litre costs
11.2 cents per km
� A hydrogen car using 1kg hydrogen per 100 km at A$11 per kg costs
11 cents per km
Therefore,
that is cheaper. This is because a hydrogen fuel cell car has significantly
higher energy efficiency than a car with an internal combustion engine.
In any event, although renewable hydrogen is currently generally more expensive
than fossil fuels, as we have said before, those costs are coming down rapidly
and the real benefits are the reduction in greenhouse gases, which is what our
trading partners are chasing.
I just say for the member's
benefit, I really do urge him to get with the program. This is absolutely not
something with which we are out there on our own. We have BP, Shell, Fortescue
Metals Group and BHP all getting on board. Indeed, I table the document titled ''Hydrogen
and Mines''. There is a conference being put on by the mining industry
next week to explore the opportunities to use renewable hydrogen in the
operation of mines.
[See paper 2779.]
(1)–(4) Typically,
the energy cost of fuels is compared on a dollar per gigajoule basis. The
Department of Primary Industries and Regional Development advises that the
costs the member has quoted are roughly correct, except for petrol, which is
approximately $31 per gigajoule before excise and GST, or roughly $3.10 by the
member's measure.
A
more important metric for transport fuels is the cost per kilometre. For
example, the Council of Australian Governments' Energy Council's
August 2018 briefing paper, ''Hydrogen for Australia's Future''
states —
� A petrol car using 8 litres per 100 km at A$1.40 per litre costs
11.2 cents per km
� A hydrogen car using 1kg hydrogen per 100 km at A$11 per kg costs
11 cents per km
Therefore,
that is cheaper. This is because a hydrogen fuel cell car has significantly
higher energy efficiency than a car with an internal combustion engine.
In any event, although renewable hydrogen is currently generally more expensive
than fossil fuels, as we have said before, those costs are coming down rapidly
and the real benefits are the reduction in greenhouse gases, which is what our
trading partners are chasing.
I just say for the member's
benefit, I really do urge him to get with the program. This is absolutely not
something with which we are out there on our own. We have BP, Shell, Fortescue
Metals Group and BHP all getting on board. Indeed, I table the document titled ''Hydrogen
and Mines''. There is a conference being put on by the mining industry
next week to explore the opportunities to use renewable hydrogen in the
operation of mines.
[See paper 2779.]
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