Australia’s Hydrogen Transition

We are seeing massive interest in investment from the private sector, including a few big names,” said Benjamin Crouch, National Business Development Manager for Freudenberg Sealing Technologies in Australia. Crouch has been heavily involved in shifting the business’s focus to hydrogen. It had tended to concentrate on classic products until now. “I believe the segment will soon be larger than anything that we did previously in Australia. Australia has embarked on a journey toward green hydrogen. According to some experts, the shift is urgently needed even if fossil resources are available at attractive prices at present. If Australian industry doesn’t start using hydrogen while it’s expensive, it won’t have the option to use hydrogen cheaply in the future,” warned the Melbourne-based think tank Grattan Institute, among other observers. Crouch sees many companies agreeing with it. “The market is extremely dynamic.” Startups coming from university projects are competing with large companies from the fossil energy sector. Each side has its strengths and challenges. That is presenting Crouch with some exciting possibilities. “We are working with very different customers,” he said. It takes material expertise to identify the best solutions and future standards, and the willingness to work together and experiment. “That’s what people appreciate about us since these are the strengths of Freudenberg Sealing Technologies.”

Dynamic Market: Engineering Innovation in Demand  

Crouch sees the greatest potential from electrolyzer manufacturers. The segment is in flux: Many different ideas are being tested and positioned for success in the market. Engineering innovation is especially in demand in seal design – as is the ability to quickly scale up production. These issues are pluses for him and his team. But special challenges lurk in this very dynamic market. “We are seeing customers leave details out of the description of their requirements. They want to protect their ideas despite the nondisclosure agreements.” That can prolong processes, yet Crouch is not overly concerned. “Trust comes with time and with good cooperation.”

There is another issue that applies to Australia: Hydrogen keeps the entire value chain busy, from production to transport and storage, all the way to its use. Exporting hydrogen poses a significant hurdle. Since it is surrounded by water, the country relies on shipping. But Crouch sees the search for solutions picking up speed. Considerable funds are being spent on port infrastructure and hydrogen hubs where production, processing and logistics are concentrated as much as possible. Given the immense distances in the country’s interior, the hubs present Crouch’s team – which is still relatively small – with the opportunity to support customers at these key centers.

Green Steel: An Australian Advantage? 

The prospect of “green steel” is especially well-suited to Australia. The country’s immense iron ore exports hide the fact that companies can make more money when they convert iron ore directly into steel. But traditional steel production produces a great deal of CO₂. With hydrogen, on the other hand, the steel would be produced sustainably, making it attractive internationally. The idea is appealing given the good conditions for hydrogen production in the country. But it continues to be associated with high costs and the appropriate infrastructure for the plants is still needed. The challenge applies to nearly every aspect of hydrogen, so it is more of a reason to tackle the transformation – and less of an obstacle to it. “We are still a couple years away from the breakthrough,” Crouch said. “But many decisions will be made over the next 12 months.”