Hydrogen microgrids could help power remote communities – but beware the hype

In remote towns, diesel deliveries often become necessary when the sun fails to shine, the wind is scarce, and batteries begin to run low. To address this issue, Australia is investing in regional and remote microgrids, including two First Nations-led projects in the Northern Territory. Microgrids are small, controllable electricity systems that can operate independently of the national network and are powered by renewable energy.

The federal government is also exploring the potential of renewable hydrogen for these microgrids. Globally, hydrogen is consumed in large quantities, but most of it is fossil fuel-based. Australia's hydrogen ambitions have faced setbacks due to cancelled projects and high costs, along with uncertain demand and a lack of infrastructure.

Our recent study explores the practical use of hydrogen alongside batteries in remote microgrids, rather than as a replacement. While the process of converting electricity into hydrogen and back again results in energy loss and high equipment costs, it offers a solution for longer storage and backup power when needed. Our study tested an experimental microgrid with batteries, electrolyzers, and fuel cells, demonstrating the system's ability to handle shifts in supply and demand while maintaining voltage stability.

The Denham project in Western Australia, the country's first remote renewable hydrogen microgrid, became operational in 2024 and was deemed successful, though challenges in delivering the project and integrating hydrogen equipment were identified. Hydrogen microgrids may be most beneficial in remote communities, islands, and offshore operations where reliable power is costly or difficult to obtain.

However, they may not be suitable for every remote community due to factors such as water supply requirements and the need for specialized knowledge and resources. Communities must carefully consider their specific needs, risks, and available technologies before deciding if hydrogen microgrids are a worthwhile investment.