Hydrogen energyProject Australian Hydrogen Centre
This report documents a detailed study by the Australian Hydrogen Centre into the technical and commercial feasiblity of producing enough green hydrogen to replace 100% 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 connections with natural gas. This Chapter outlines the segmentation of those customers and considers the key industrial users of natural gas connected to the Victorian gas distribution network. This is an important input into the following chapters as it defines how much renewable hydrogen
production will be required (Chapter 3) as well as the sectors (and appliances) in which this hydrogen needs to be used (Chapter 5).
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 hydrogen and adopts AEMO’s Central Scenario as outlined in its 2021 Gas Statement of Opportunities (GSOO) as the basis of forecasts for hydrogen demand through to 2050. To achieve 100% hydrogen in networks for this level of demand, Victoria would need to produce 1.4 million
tonnes of hydrogen annually.