Key Developments in Battery Storage and Green Hydrogen

Renewable energy powers are set to boom. 

As of 2024, renewable energy sources make up 30% of the world’s electricity. This marks a significant increase from previous years, driven by substantial investments and advancements in technology. Renewables are rapidly growing, they are cost-effective, and they promise a cleaner energy future.

In fact, renewables have seen a huge growth in development since the 1970s, offering the benefit of lower emissions of carbon and other types of pollution. 

Yet, let’s briefly rewind back to the days when solar panels were the coolest new thing you could imagine. New developments were closely watched and companies producing them had massive booths at trade fairs like Intersolar.

Later, they started becoming a commodity and the hype moved on to inverters. Even with that, the hype wore off just within a few years. 

Then came batteries, with the promise of optimising self-consumption at home or stabilising the grid through Mega-batteries like Tesla and others.

But now even batteries are just a hardware component – and we are swiftly moving towards the Holy Grail: the smart, carbon neutral (or negative) household and economy – connected to smart, high efficiency devices and charging your electric vehicle and / or bike.

The fact is, renewables are growing faster and getting smarter, as the demand for the energy supply is increasing. So, let’s explore the advancements in battery storage and green hydrogen to better understand their impact on our future.

Battery Storage 

Battery storage systems played a vital role to allow energy to be stored during times of low demand and dispatch during peak hours. On the larger end of town, batteries will stabilise the grid and soak up potentially curtailed renewable energy power – when the influx of wind or sun or tidal power is too much for the grid to take. 

This is happening increasingly in most parts of the world. A good problem to have you would think – but it is still a problem as it can make grids shut down in entire states, which recently happened in Australia.

Batteries are indeed great to help mitigate that – but other technologies are required to fill the gap of a massively increasing demand forecasted. Some of those technologies, or better energy storage mediums are rather old, like hydrogen.

Australia's Battery Storage Projects: Key Insights

Australia is making significant strides in battery storage to support its renewable energy transition. The current storage capacity in Australia is around 3 GW, including batteries, virtual power plants (VPPs), and pumped hydro. The Australian Energy Market Operator (AEMO) forecasts that the country will need at least 22 GW of storage by 2030 and 49 GW by 2050 to reach net zero.

Key projects include Snowy 2.0, a pumped hydro project providing 350 GWh of storage capacity, supporting both New South Wales and Victoria. Another significant project is the Borumba Dam, expected to offer 48 GWh of capacity in Queensland, which will be larger than all coordinated consumer energy resources (CER) storage combined. Additionally, the Australian Renewable Energy Agency (ARENA) is supporting up to 370 community batteries as part of its Community Batteries Fund, bringing the total to more than 420 across Australia.

Despite these advancements, Australia faces several challenges in expanding its battery storage capacity. High costs pose a significant financial challenge while navigating the regulatory landscape can be complex and time-consuming. Moreover, ensuring that battery storage systems are effectively integrated with the existing grid infrastructure is crucial for maximising their benefits.

Globally, countries like Germany and the UK are leading in battery storage deployment, with significant investments in both grid-scale and residential battery systems. The United States is rapidly expanding its battery storage capacity, with numerous projects underway to support its renewable energy goals. Meanwhile, China continues to dominate the battery manufacturing market, with extensive investments in both production and deployment of battery storage systems.

Australia is really stepping up its game with some impressive battery storage projects and strategic initiatives. These efforts are positioning the country as a major player in the global renewable energy scene. By tackling the challenges head-on and playing to its strengths, Australia has a real shot at boosting its energy security. Plus, these advancements will make a significant contribution to global climate change efforts.

Green Hydrogen

Hydrogen production has been around for industrial and (agro-) chemical uses for many decades – but it has been labelled as inefficient technology and it is using a lot of energy. 

But if that energy is clean, abundant, and unlimited renewable energy – stored to supply the grid when there is no other renewable energy source available or stored when there is too much renewable energy “pushing” into the grid – then that’s another story. 

In Australia, significant advancements have been made in green hydrogen. The New South Wales government has recently approved substantial investments in green hydrogen to support its renewable energy goals. The 2024 National Hydrogen Strategy outlines ambitious targets, including a renewable hydrogen production target of 15 million tonnes per annum by 2050. This strategy aims to position Australia as a global leader in hydrogen production and export.

Australia’s hydrogen projects are among the largest in the world, with plans to create hydrogen hubs and reduce production costs. These efforts are part of a broader strategy to decarbonise industries and support the transition to a net-zero economy.

Australia's Green Hydrogen Projects: Key Insights

Green hydrogen projects are now a feature in all states, including the ambitious 235 GW plan outlined by billionaire miner Andrew Forrest. However, in July 2024, Fortescue Mining scaled back its green hydrogen plans due to high energy prices, which led to an overhaul of the group and 700 job cuts. 

Additionally, Origin Energy recently withdrew from its joint venture with Orica for the Hunter Valley Hydrogen Hub in New South Wales. Origin cited uncertainties around the pace and timing of hydrogen market development and the risks associated with capital-intensive projects. Orica, however, remains committed to exploring new opportunities in the hydrogen sector.

The Tasmanian government has set a target of 200 per cent renewable by 2040, in recognition of their green energy export opportunity.

The Japanese giant Mitsubishi Heavy Industries (MH) has also bought a stake in a local hydrogen and ammonia project developer, H2U. MHI’s investment in H2U, which includes the Eyre Peninsula Gateway Hydrogen Project, continues to be a significant boost for Australia’s renewable hydrogen ambitions.

Thanks to these continuous developments in green hydrogen and solar energy export plans, Australia now sits in the fourth position on the Ernst & Young (EY) Renewable Energy Country Attractiveness Index as of 2024.

In the lead, you will find Denmark, Greece, and Chile, driven by their large-scale renewable energy projects and supportive policies. India has also emerged as a major player, ranking highly due to its significant investments in solar and wind energy. Brazil is also making significant strides, leveraging its abundant natural resources and strong competitiveness in renewable energy.

Increasingly, you can also find microcosms of these countries, states or regions starting up (literally) around new technology centres like EV factories.

Tesla’s Gigafactory in Berlin with a battery factory next door, for instance, is already being flagged and new tech ventures around fast charging for cars setting up or expanding. Ubitricity at Berlin’s EUREF-Campus is a prominent example.

Now the question is no longer about if and when this is going to happen, but at what speed are we likely to progress with these initiatives.

Moreover, which technologies will prevail and which of the countries, regions and cities are likely to profit from it. This will be measured by the number of jobs created and a subsequent increase in the standard of living.

The Future Of Renewable Energy:

The interesting thing to watch in the future won’t be if and when renewables are getting smart – but how and where and how fast. With technology’s ability of playing a huge part in mitigating the effects of climate change – the future looks cleaner and a little less scary.

As a renewable energy recruitment agency, we understand the critical role that skilled professionals play in driving the industry forward. If you are looking to build a talented workforce to support your renewable energy projects, we are here to help. Reach out to us to discuss your workforce needs and how we can assist you in finding the right talent to power your initiatives.