Following the recent inauguration of President Biden, it is encouraging to see the new administration appears to be taking the climate change challenge seriously and will propose a $2 trillion climate change agenda. It has also moved to recommit the United States to the Paris Agreement — the internationally binding treaty to combat climate change. This is a significant step given that the United States Environmental Protection Agency (EPA), estimates the US is responsible for 15 per cent of the world’s greenhouse gas emissions. To date, the European Union, Japan and the Republic of Korea, and now the USA, along with 110 other countries have pledged carbon neutrality by 2050, and PR China claims it will do so by 2060.
On the 23rd January 2021 there was another encouraging sign when Dr Andrew (Twiggy) Forrest AO, Chairman of Fortescue Metals Group Limited (FMGL) delivered the first Australian Broadcasting Corporation (ABC) Boyer Lecture for 2021, entitled “Oil vs Water: Confessions of a Carbon Emitter”. In his lecture Dr Forrest outlined his belief that the use of “green hydrogen” as a substitute for fossil fuels can not only provide a way forward in the climate change challenge but create a major “green hydrogen” export industry that would create thousands of Australian jobs. Dr Forrest explained that his company, FMGL, recently embarked on a plan to become one of the world’s largest green energy and product businesses.
What does all this mean for those of us in the gas industry? These developments herald exciting times and will offer up great opportunities – so out of the gloom and desperation of 2020, there is good reason for optimism. There are already a number of trials underway to produce green hydrogen which would be blended with reticulated natural gas. If enough green hydrogen can be produced as is planned by FMGL, green hydrogen can eventually replace reticulated natural gas and coal for electricity generation.