Australian Hydrogen Centre gets the Green Light
24 Feb 2020 by Joanna Sampson
The Marshall Government’s transformation of South Australia’s energy system takes another significant step forward today with the establishment of the Australian Hydrogen Centre.
Launched today at Tonsley Innovation District, the centre will undertake feasibility studies into blending 10% and 100% hydrogen into city and regional gas networks in South Australia and Victoria as a key step towards the greater use of hydrogen in gas distribution networks.
Led by Australian Gas Network (AGN) in collaboration with founding members Neoen, AusNet Services and ENGIE, the Australian Hydrogen Centre will build on the learnings from AGN’s Hydrogen Park SA project, which is anticipated to deliver cleaner gas to more than 700 customers in Mitchell Park from mid-2020 – at no additional cost to residents.
The centre will have more than $4m in government funding, industry cash and in-kind contributions, and has today secured $1.28m from ARENA, $120,000 from the South Australian Government and $500,000 from the Victorian Government.
South Australian Minister for Energy and Mining Dan van Holst Pellekaan said the Australian Hydrogen Centre’s ambitious research will explore the pathways required to decarbonise the South Australian and Victorian gas distribution networks by identifying methods to scale up renewable hydrogen production and consumption.
“The hydrogen will be blended with natural gas and supplied to nearby homes and businesses via the existing gas network, with potential also to supply 100% hydrogen to industrial users via tube trailers (long storage tubes on the back of semi-trailers),” he said.
“A 5% hydrogen blend is the first important step to reducing gas related emissions and will help accelerate renewable hydrogen into the South Australian economy.”
“The aim of the funding is to support large scale deployments of renewable hydrogen projects and bring costs down to help to make the technology commercially viable.”
“The development of new energy technologies is at a tipping point, and renewable hydrogen will soon provide a much-needed carbon-free fuel for our domestic and export markets.”
“Producing a clean burning gas like renewable hydrogen supports South Australia’s intention to be net-zero emissions from electricity generation by 2030’s and net-zero emissions across the state by 2050.”
ARENA CEO Darren Miller said the natural gas network could be a key piece of infrastructure to support decarbonisation of the national energy system.“
The network has the potential to be used for the long-term storage of renewably produced hydrogen and limit the need for electrification alternatives, which can be costly,” he said.
“The development of a local hydrogen sector will underpin the investment in technology and skills to support the long-term export opportunity. These studies will go a long way to identifying the possibility of using and storing hydrogen in local gas networks.”
AGN CEO Ben Wilson said, “AGN, as part of Australia’s broader energy industry, has commenced the new decade with a strategy that aims to deliver substantial, measurable and world-leading outcomes in minimising the current and future carbon footprint across the whole of our national gas distribution business.”
“This public licence also requires total transparency so the studies will provide guidance as to both the best solution to deliver renewable gas into our networks while ensuring full engagement with all stakeholders and consumers about this step-change in Australian energy delivery.”
“The 2020s will be an exciting time for the energy industry and consumers. ARENA’s foresight in backing the strategy for a roll-out of more renewably sourced gas in these two key major markets, is to be commended.”
The feasibility studies are expected to be completed in January 2022.
