Offshore Renewable Hydrogen Potential in Australia: A Techno-economic and Legal Review
Abstract
Hydrogen is increasingly recognised as a potential critical energy carrier in decarbonising global energy systems. Australia is positioning itself as a potential leader in offshore renewable hydrogen production by leveraging existing liquified natural gas export infrastructure, activating its abundant renewable energy resources, and harnessing its extensive offshore marine acreage. Despite this, there is limited research on the techno-economic and regulatory pathways for offshore hydrogen development in Australia as an enabler of its net zero manufacturing and export ambitions. This study offers a multidisciplinary assessment and review of Australia’s offshore renewable hydrogen potential. It aims to examine the technical, legal, and economic challenges and opportunities to enable and adapt the existing Australian offshore electricity regulatory regime and enable policy to facilitate future renewable offshore hydrogen licensing and production. Overall, the findings provide practical insights for advancing Australia’s offshore hydrogen transition, including technical innovations needed to scale offshore wind development. The study demonstrates how a specific offshore hydrogen licensing framework could reduce legal uncertainties to create economies of scale and reduce hydrogen investment risk to unlock the full potential of developing offshore renewable hydrogen projects.