Pipeliners have everything to gain from a net zero Australia

By David Norman, CEO of Future Fuels Cooperative Research Centre

A new study by three major universities shows the scale of hydrogen, carbon dioxide and water pipelines needed to achieve net zero. Australian pipeliners have everything to gain from the opportunities that decarbonisation will bring.

May marks a milestone with the launch of a major techno-economic study of how a net-zero Australia could look. Titled the Net Zero Australia Study, and led by the Universities of Melbourne, Queensland, Princeton and the Nous Group Consultancy, we at Future Fuels CRC have sponsored the study alongside APA Group and Worley. Included is a diverse advisory group to achieve its aim of being rigorous, granular, evidence-driven, technology-neutral and non-political.

The study is designed to look at how a true net-zero emission Australia would operate based on a series of potential scenarios. It does not make judgements of which scenario is more desirable, achievable or likely. It lets each of us decide that for ourselves. But what it does do is illustrate the scale, complexity and cost of the net zero challenge, the implications of key choices, and the potential impacts of making those choices across society, the economy and the environment.

The study is a ground-breaking piece of modelling, showing how large-scale variable renewable energy (VRE) could transform our country, both for domestic and exports markets. The model was provided with the option of building either hydrogen pipelines from VRE aggregation nodes to port and demand locations or building only electricity transmission instead. The model chose to build primarily hydrogen pipelines between the VRE nodes and ports, with hydrogen being produced in electrolysis facilities at VRE aggregation nodes before being piped to the port, and electricity lines being run in parallel to support the electricity requirements of other new industrial infrastructure, such as desalination plants and ammonia facilities.

All core scenarios involve the construction of very substantial hydrogen pipelines by 2060, with a need for 292 to 600 GW of hydrogen transmission pipelines. These pipelines are chosen by the model as the least cost means of moving the enormous quantity of clean energy from inland solar and wind locations, where the model choses to convert the renewable electricity to hydrogen at the earliest possible opportunity and then utilise the cheaper means of transmission of clean molecules by pipeline to port locations. This outcome is very consistent with separate modelling work released by the APGA, of the economics of pipelines versus powerlines and again demonstrates the commercial advantage of moving molecules versus moving electrons in such situations.

Depending on the individual scenario, that’s 10,000 to 15,000 kms of large diameter hydrogen transmission pipelines to service these export regions, plus water pipelines to carry the required desalinated water in the opposite direction. Separately the modelling study illustrates the requirement for 16,000 to 20,000 kms of carbon dioxide pipelines to support the carbon capture, utilisation and storage (CCUS) needed to make net zero possible.

All this capacity will need storage to balance VRE supply and demand from both domestic and export customers. Depending on the scenario, between 20 and 60 TWh of hydrogen storage will be needed. That’s equivalent to over 200PJ of gaseous fuel storage.

All of this creates an enormous opportunity for the pipeline industry to innovate and support the transition to net zero across Australia.

There are countless other conclusions and insights available from the ground-breaking work. I encourage you to delve into this study in depth and find the opportunities for your business.

You can find the full study plus all the methods, data and the seventeen downscaling reports which provide granular results on employment, capital deployment, renewable and non-renewable resources at www.netzeroaustralia.net.au.

This article featured in the May edition of The Australian Pipeliner. Access the digital copy of the magazine here.