Australia’s first renewable hydrogen refuelling station network is being supported with $20 million in government funding.
The landmark tri-state collaboration between New South Wales, Victoria and Queensland targets heavy transport and logistics along Australia’s eastern seaboard.
NSW energy minister Matt Kean says establishing a hydrogen refuelling network for heavy transport on Australia’s busiest road freight routes will enable the decarbonisation of the heavy transport industry.
“Renewable hydrogen will increasingly become a competitive zero emissions fuel option for our heavy transport sector, giving our trucking industry the opportunity to decarbonise their fleets.
“The governments of New South Wales, Victoria and Queensland are signing memorandums of understanding for the refuelling corridors, starting with the Hume Highway, the Pacific Highway and the Newell Highway,” Kean says.
Victorian minister for energy, environment and climate change Lily D’Ambrosio says the agreement will be key to reducing emissions in transport and logistics.
“The renewable hydrogen highway will create new jobs, drive investment across the east coast and is a landmark step towards meeting Victoria’s target to halve emissions by 2030 and reach net-zero by 2050.
“This historic collaboration will revolutionise Australia’s busiest freight corridor, lighting a pathway to a zero-emissions transport sector,” D’Ambrosio says.
Queensland minister for energy, renewables and hydrogen Mick de Brenni says hydrogen presents an enormous opportunity including emissions reduction opportunities and fuel security benefits.
“When you consider the impacts of the COVID pandemic and international conflicts, it’s clear Australia must achieve energy independence, to shield our nation from foreign companies and foreign powers.
“Low emissions electricity and hydrogen fuelled heavy transport will sit at the heart of the renewable energy eco-system. Transport is the fastest growing sector for emissions and ironically it could also be the key to reducing them,” de Brenni says.
Under the agreement, the states have agreed to collaborate on the development of the east coast hydrogen refuelling network, including on the Hume Highway, the Pacific Highway and the Newell Highway by 2026.
The work will commence with Victoria and New South Wales each providing $10 million to build at least four renewable hydrogen refuelling stations between Sydney and Melbourne.
The funding will also provide grants for the country’s first long-haul hydrogen fuel cell electric freight trucks.
Important step towards zero emissions
Federal Chamber of Automotive Industries (FCAI) chief executive Tony Weber says the project is an important step in preparing Australia’s eastern transport networks for a zero-emissions future.
“While this announcement is initially aimed at the trucking industry, it is a historic first step in preparing the broader transport sector for large-scale renewable hydrogen use. It is great to see three state governments behind this programme.”
Strong potential exists for this fuel source to eventually be cost-competitive with diesel, which the FCAI notes currently powers around one-third of Australia’s new vehicles.
“To prepare Australia for a zero-emissions transport future, more infrastructure investment such as this hydrogen project and leadership from governments at all levels will be needed,” Weber adds.
Action needed for 2050 target
Meanwhile, a report finds that Australia needs to electrify its national vehicle fleet to meet the country’s CO2 emissions reduction targets and reach net-zero by 2050.
The report by Australian asset finance brokers and comparison service Savvy illustrates what’s needed for Australia to convert its national diesel road transport fleet to fully electric vehicles.
“Considering that transport emissions account for 19% of the total, of which road freight comprises 38%, action taken in the next two decades to transition to electric trucks will have a significant impact on success,” it says.
“Trucks also consume 23% of all road transport fuel – despite only travelling 8% of all road vehicle kilometres and comprising 4% of the entire Australian road vehicle fleet,” the report explains, adding that a truck’s average age in Australia is between 10-15 years and that 70% of truck operators own only a single vehicle.
The goal is 30% new electric truck sales by 2030 and 100% by 2040, the report suggesting subsidies and incentives are required to make the transition, especially as the upfront purchase price of an e-truck is almost double its diesel equivalent.
“Trucks are the lifeblood of freight in Australia,” the report adds, suggesting e-trucks could reduce air pollution and associated health concerns, create new employment opportunities, encourage sustainable transport solutions, reduce transport costs and therefore the cost of goods for consumers and businesses, ensure energy security, and contribute to the national commitment for net-zero carbon emissions.
Australia uses about 500,000 rigid trucks and 100,000 articulated trucks.
Diesel fuel is the most significant cost for a trucking operator, on average representing 20% of short-haul operator costs and 35% of long-haul operator costs with any volatility (such as Russia’s war in Ukraine) inflating costs which must be passed on to business and consumers, the report says.
Restrictions on oil products from Russia (as of March 24) have contributed to diesel prices increasing 35% from an average of $1.63 in December 2021 to $2.21.
As e-trucks are quieter, it means they can be used later at night and avoid urban or suburban “truck curfews” – policies introduced to curb noise pollution, which also have a flow-on effect for commuters as it would reduce peak hour traffic and congestion.
Potential cost savings
“With all environmental and health benefits combined, it’s estimated that an electrification of both articulated and rigid trucks could save the Australian consumer $324.8 billion by 2050.”
A reduction of moving parts for e-trucks also means maintenance cost reductions.
Looking at a 22-tonne truck covering 300km without freight, the cost in diesel at current prices (March 24) would be $189.61, while the cost of powering an e-truck would be between $14-$42, based on off-peak tariffs for a depot-based fleet, saving 77.8%, the report notes.
Only 14 out of the 58 truck models available in North America, China, and Europe can be used in the Australian market. According to the Australian Trucking Association, this is due to current policy rules. Therefore, there is artificial scarcity and limited choice for truck operators in Australia, even if they wanted to move to e-trucks.
The ATA says the government should provide a one tonne concession for e-trucks, taking the battery weight into consideration and that widths should be increased to align with the standard width used by major supplier economies.
High stamp duty prices should be exempt for electric or zero-emission trucks, while the report suggests other incentives could assist e-truck uptake.
