Hydrogen energyProject Australian Hydrogen Centre
This report documents a detailed study by the Australian Hydrogen Centre into the technical and commercial feasibility of producing enough green hydrogen to replace 10% of Victoria’s natural gas consumption and distribute it using the existing natural gas networks. It is one of a series of seven such studies, each focused on a particular scenario in terms of geographical coverage and the proportion of natural gas consumption replaced.
In 2020, Victorian gas distribution networks supplied more than 2.1 million customers with natural gas. This Chapter outlines the segmentation of those customers and considers the key industrial users of natural gas connected to the Victorian network. This is an important input into the following chapters as it defines how much renewable hydrogen could be required from hydrogen
production facilities as well as the sectors and appliances in which this hydrogen needs to be used.
As well as analysing the present gas usage of all customers, this Chapter draws on 2021 data from the Australian Energy Market Operator (AEMO) to outline gas consumption forecasts in Victoria. It explains the trends that influence gas consumption, including seasonal changes, which are a major factor in Victoria.
This Study assumes that existing natural gas demand is interchangeable with demand for blended gas and adopts AEMO’s Central Scenario as outlined in its 2021 Gas Statement of Opportunities (GSOO) as the basis of forecasts for blended gas to 2030. To achieve 10% hydrogen in networks for this level of demand, Victoria would need to produce around 28,000 tonnes of hydrogen annually