Australia's LNG industry is witnessing a green hydrogen future

According to Sinochem News on June 16, Australia has become the world’s largest exporter of liquefied natural gas (LNG), and Australia’s ultra-refrigerated fuel producers are considering transforming their industries to become a global leader in hydrogen.

.

The thematic sessions of the Australian Petroleum Production and Exploration Association (APPEA) conference are full of how the industry can and should meet the challenges of climate change and turn to carbon-free energy production
.

The strongest call came from Kevin Gallagher, chairman of Santos, Australia's second largest oil and gas producer and president of APPEA, who said at the meeting that unless the industry achieves carbon reduction, it will not be able to continue to develop its resources
.

He said at the meeting: "It is vital to achieve decarbonization through technologies such as carbon capture and storage, and the use of natural gas to produce hydrogen
.

Gallagher's call is not the first time that hydrogen fuel has been converted into a solution to Australia's resource industry emissions.
As the world's largest exporter of coking coal for steelmaking and the second largest exporter of thermal coal for power plants, given its dominance of liquefied natural gas And status, Australia is a major carbon producer
.

The difference this time is that the industry is using its biggest event to talk about fundamental changes, and is effectively recognizing that it will die if it does not embrace a decarbonized future
.

Perhaps the LNG industry has seen the changes that have taken place in coal and decided to take action before irreversibly embarking on the same path
.

If you go to Asia to attend a coal conference ten years ago, you will find that the industry is full of confidence in its future, that its products are cheaper and more reliable than alternative energy sources, and that climate change is really just a scam
.

Fast forward to today, coal-fired power generation is threatened, and perhaps in addition to countries with huge domestic reserves such as India, new mining projects are struggling to obtain approval and funding, and Asian countries are canceling their coal-fired construction plans in favor of the current support of electricity storage.
Cheaper renewable energy
.

Australia’s LNG industry faces the same pressures as the coal industry, namely, difficulty in obtaining capital and bank financing, shareholder opposition to climate change policies, and the threat of long-term phase-out in the future of carbon restrictions
.

Therefore, we have the idea of ​​switching to hydrogen fuel
.

The most environmentally friendly way to produce hydrogen is to use electricity generated entirely from renewable energy to power the production process of energy-intensive industries.