Market

Globally, the current hydrogen market is estimated at US$142 billion with the major application being the use for the production of ammonia and oil refining. The production process generally uses natural gas which produces CO2.

Europe aims to build a pipeline along the hydrogen value chain to create a clean hydrogen market contributing to growth, jobs and reducing greenhouse emissions. Hydrogen Roadmap Europe (image below showing Germany’s planned H2 stations) predicts 45,000 fuel cell trucks and buses being on the road by 2030. Goldman Sachs estimates green hydrogen supplying up to 25% of the world’s energy needs by 2050, which would make it potentially a US$10 trillion market globally. Australia does, naturally with its space, high percentage daily sunshine and wind in abundance, having the potential to use renewable energy generation to power hydrogen electrolysis – the method to turn H20 to 99.9% pure hydrogen.

The view is emerging that renewable hydrogen can be a game-changer in global efforts to decarbonize economies as there is a real opportunity for cost-competitive green hydrogen to drive transformation. Logistics operators in WA would recognize the advantages of cost saving as well as being participants to help build a resilient energy system that thrives on modern technologies and embraces innovative solutions fit for the 21st century.

Hydrogen vehicle sales are a key market demand indicator in particular for one of Top Group’s main customer categories, i.e. heavy vehicles.

In the categories of buses and trucks, projections are for a significant acceleration from a base of five buses in 2021 to more than fifty trucks and buses in 2022. While also accelerating further and accompanying fleets of cars as manufacturers such as Toyota and Hyundai sell their award winning cars at scale. Likewise in 2021, FMG have established pilot hydrogen vehicle conversions for all of their main mine-site operations, including heavy haulage, and a fleet of hydrogen buses to be delivered beginning October 2021.

Using Hydrogen as fuel will be more cost effective and more convenient. Just by using the existing heavy vehicle engine technology, the move to decarbonisation can happen faster and at a lower cost. Having Hydrogen stations in close proximity, will also contribute to providing refuels in less than 5 minutes.

Already Hydrogen West is in early stages of transitioning its network of roadhouses to hydrogen fuel dispensing.  As noted, Hydrogen West has agreements in place for a massive multi-billion uptake in collaboration with its partners in green hydrogen, and it is in advanced stages of transitioning its network of roadhouses to hydrogen fuel dispensing and to building a Flagship station at Perth Airport.

Our view is that we will emerge as leading purveyors of hydrogen fuel to the transport sector, shaping the role of hydrogen in transforming the transport industry in WA.

Competitive positioning inevitably comes down to two factors:

• A unique value proposition for customers, in other words, a key benefit
• The key differentiator from incumbent products/services

It is clear that clean energy solutions, such as hydrogen, offer customers the benefit of being environmentally conscious. This benefit can only increase with time. Even where hydrogen becomes more widespread, a key differentiator remains as being a primary provider with first mover advantage. Being regionally located, our sites have space to accommodate hydrogen conversion and storage: a clear benefit against more heavily populated locations.

It is the summation of key benefit plus key differentiator that gives Hydrogen West its competitive edge.

A key factor in positioning our competitive edge is the depth of research and data gathering that we have secured, particularly on the back of association with Integrated Energy. A recognised global expert in integrated operations and digital transformation across the full resource value stream, with a proven track record in consulting assessments which have identified tens of billions of dollars of value for clients around the world. David Cavanagh and his team have gone into deep analysis of the hydrogen opportunity, in particular its impact on transportation.

Importantly for a nascent market opportunity is viability. Here intensive data collection and modelling by Integrated Energy has provided demonstrable feasibility for solar and hydrogen. Ultimately, the three-way collaboration between Hydrogen West, Integrated energy and Infinite Blue Energy (‘IBE’) has provided both upstream (with IBE) and downstream (with Hydrogen West as the customer), to result in a commercially viable and sustainable business venture. Hydrogen West’s partners at IBE have a core team with many years’ experience in designing and operating energy assets across Australia.

It is the buyer and the competitively priced supplier that makes a market and a project viable. With viability proven, it is scalability that provides Hydrogen West and its partners as a defensible and advantageous market position as market leader.

The result is totally transformative across the transport industry based on deep analysis across the life cycle of hydrogen and diesel as fuel and applications.