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Hydrogen allows energy to be stored and moved in bulk, in physical space, and at the point of final consumption it will not produce carbon emissions. These are desirable properties for a country that imports most of its energy from far away, and for a producer that's awash in energy but has limited options in exporting it out. In the short term, this also greenwashes Japan's energy situation at a glance, by shifting more of the emissions to Australia away from Japan compared to simply shipping solid coal around. It also keeps Australia's fossil fuel extraction sector going. Critics of hydrogen are right to point out that some of the most vocal proponents of hydrogen are fossil fuel producers, and that an overwhelming majority of today's hydrogen is produced from fossil carbon fuels. In the long term, those who built out hydrogen infrastructure will be at an advantage if hydrogen production from electricity ever becomes economical, for two reasons: First, if electricity is abundant, electricity will consequently capture a larger share of total energy consumption, leaving only those uses where electricity is impractical (e.g. airplanes, hypermobile vehicles, off-the-grid storage, long-distance transfer, open flames). Hydrogen presents a useful answer to many of the applications where electricity won't work well. Second, momentary surplus electricity should be consumed in an electricity storage mechanism from which a portion of the input can be recovered, but most other electricity storage mechanisms are stationary installations that can only time-shift, but not space-shift. Hydrogen storage can be used to time-shift like any other, or space-shift to move it out of the source grid entirely. |
Time shifting is the difficult part of the problem. "Space shifting" is pretty easy to solve by extending and interconnecting the grid. HVDC cables can move energy instantaneously, in much greater volumes, and with much higher efficiency than with hydrogen.
Here is one ambitious project to do exactly that:
https://en.wikipedia.org/wiki/Australia–ASEAN_Power_Link