The 2024 National Hydrogen Strategy outlines Australia’s comprehensive plan to reduce carbon emissions, with a strong focus on using hydrogen as a critical energy carrier. This strategy has significant implications for fleet managers seeking to reduce CO2 emissions, particularly through hydrogen’s potential in the transport sector, including trucks and other heavy-duty vehicles.
Overview of the National Hydrogen Strategy
Australia’s National Hydrogen Strategy, first launched in 2019 and updated in 2024, positions hydrogen as a crucial tool for achieving the nation’s net-zero emissions target by 2050. Hydrogen is especially critical for sectors that are difficult to decarbonise, such as transport, heavy industry, and aviation. Transport alone accounted for 21% of Australia’s emissions in 2023, and hydrogen is seen as a vital solution to reduce emissions in long-distance freight and other transport modes .
Hydrogen’s Role in Decarbonising Transport
The transport sector is one of the key focuses of the hydrogen strategy. While battery electric vehicles (BEVs) are leading the transition for light and medium-sized vehicles, hydrogen is expected to play a vital role in heavy-duty and long-haul transport. Fleet managers overseeing trucks, freight, and other commercial vehicles should consider hydrogen as an alternative to diesel and BEVs, particularly in scenarios that demand long driving ranges, short refuelling times, and high payload capacities .
Hydrogen fuel cell electric vehicles (FCEVs) offer specific advantages for heavy vehicles. Key benefits include shorter refuelling times compared to BEVs, reduced need for extensive charging infrastructure, and better payload capacities because they do not rely on heavy batteries. These factors make hydrogen a strong contender in the freight transport sector, especially for long-distance travel .
Hydrogen in Road Freight and Trucks
One of the most promising areas for hydrogen fuel is Australia’s heavy-duty and linehaul road freight sector. By 2035, hydrogen is expected to represent a significant portion of energy use in heavy freight, potentially accounting for half of the sector’s energy consumption by 2050 . The government’s strategy acknowledges that hydrogen is likely to be more effective than BEVs for longer freight routes, particularly those exceeding 350 kilometres. Hydrogen-powered trucks can refuel quickly and maintain a higher range, enabling more efficient long-haul operations .
Several government initiatives are aimed at overcoming the current challenges to hydrogen adoption in the road freight sector. These include the $80 million Driving the Nation Fund for Hydrogen Highways, which supports hydrogen refuelling networks along key freight routes. Additional government support includes trials for hydrogen-powered heavy vehicles and back-to-base refuelling infrastructure .
Transport Initiatives Under the National Hydrogen Strategy
The strategy includes a series of actions aimed at encouraging hydrogen adoption across transport sectors. The Australian Government has committed to targeted hydrogen investments, with plans to establish hydrogen hubs in key regions. These hubs are designed to encourage co-location of hydrogen production and usage, making it easier for industries and transport sectors to adopt hydrogen technologies .
The New South Wales (NSW) Hydrogen Hubs initiative is a notable example of government support. Hydrogen hubs in NSW are receiving funding to decarbonise agriculture and transport through hydrogen. These hubs will play a critical role in transforming regional economies and supporting the transition to low-emission transport solutions .
Regulatory Reforms and Infrastructure Development
The success of hydrogen in the transport sector will also depend on supportive regulatory frameworks. The Australian Government is actively working on transport-related regulatory reforms, including a National Code of Best Practice for hydrogen refuelling. This ensures that safety standards are met and enables the importation of hydrogen vehicles that meet industry needs .
Additionally, the National Hydrogen Strategy highlights the importance of investment in infrastructure to support hydrogen distribution. The plan includes incentives for the construction of hydrogen refuelling stations, particularly along key freight routes. These refuelling stations are crucial for the adoption of hydrogen-powered vehicles, especially trucks, as they will enable long-distance travel without the significant delays associated with battery charging .
Hydrogen’s Role in Aviation and Maritime Transport
In addition to road freight, hydrogen holds potential for decarbonising other transport modes, such as aviation and maritime transport. Hydrogen-based sustainable aviation fuels (SAF) and hydrogen fuel cells for shorter-haul flights are being explored globally. The strategy includes provisions for government support to develop infrastructure and research that will make hydrogen a viable fuel for aviation .
Similarly, hydrogen and its derivatives, such as ammonia and methanol, are being considered for long-distance shipping, where electrification is impractical. Hydrogen is projected to play a critical role in reducing carbon emissions in the maritime sector, which accounts for nearly 3% of global emissions .
Economic Opportunities and Industry Collaboration
Hydrogen presents not only an environmental opportunity but also an economic one. Australia is well-positioned to become a global leader in hydrogen production and export. The hydrogen market is forecast to reach $1.4 trillion globally by 2050, and Australia’s abundant renewable energy resources give it a competitive edge in this emerging market .
For fleet managers, this translates into growing support for hydrogen technology from both government and industry, as well as the potential for cost savings as hydrogen becomes more commercially viable. As hydrogen production scales up, the cost of hydrogen fuel is expected to fall, making it competitive with traditional fuels like diesel .
The Australian Government is also actively seeking international partnerships to support hydrogen development. Collaborative efforts with countries such as Japan, India, and the United States focus on reducing the costs of hydrogen production, transportation, and storage .
Considerations for Fleet Managers
Fleet managers looking to integrate hydrogen-powered vehicles into their operations should take several factors into account. The availability of hydrogen refuelling infrastructure, vehicle cost, and the suitability of hydrogen technology for specific vehicle applications are key considerations. Hydrogen is best suited for high-utilisation vehicles, long-distance routes, and operations that require quick refuelling and high payloads .
Moreover, government incentives and industry support for hydrogen adoption will likely continue to grow, making it an increasingly viable option for fleet managers. The strategy provides opportunities for collaboration with government bodies to access funding and participate in hydrogen trials and infrastructure development .
Conclusion
The 2024 National Hydrogen Strategy offers a clear pathway for fleet managers to consider hydrogen as a powerful tool in reducing CO2 emissions, particularly in heavy-duty transport. With government support, technological advancements, and the development of hydrogen infrastructure, hydrogen fuel is set to play a pivotal role in Australia’s decarbonisation efforts. Fleet managers should closely monitor these developments and consider how hydrogen-powered vehicles could be integrated into their long-term strategies for reducing emissions and improving operational efficiency.
