Australian Gas Networks LimitedLocation
South AustraliaARENA Program
Department for Energy and Mining, Department of Environment, Land, Water and Planning, AusNet Services, Engie Energy Services, Neoen Australia
The Australian Hydrogen Centre will assess the feasibility of blending renewable hydrogen into gas distribution networks in Victoria and South Australia.
Gas is relied upon by 6.5 million households and provides nearly a quarter of Australia’s total energy supply1.
The gas sector’s vision is to be near zero carbon by 2050. One way this could be achieved is by using carbon-free or carbon-neutral gases (such as hydrogen) in place of natural gas. However, detailed plans first need to determine if the transition from natural gas to renewable gas is feasible.
The Australian Hydrogen Centre will assess the feasibility of blending renewable hydrogen into gas distribution networks (in the near term) and transition to 100 per cent hydrogen networks (over the long term).
Feasibility studies will include:
- 10 per cent hydrogen blending into selected regional towns in VIC and SA
- 10 per cent hydrogen blending into gas networks of VIC and SA
- 100 per cent hydrogen networks for VIC and SA
In addition, knowledge sharing reports will be published, presenting key learnings from Hydrogen Park SA (HyP SA) – where renewable hydrogen will be blended into the gas networks in the suburb of Mitchell Park, Adelaide.
Key outcomes include:
- comprehensive studies to decarbonise gas consumption in Victorian and SA
- project plans to inject 10 per cent renewable hydrogen into selected regional towns
- sharing the learnings from HyP SA – de-risking other power to gas projects
- expanding the market for renewable electricity generation
- establishing a platform for other states to decarbonise their gas consumption by leveraging on the Victorian and SA feasibility studies
- establishing a large domestic market for renewable hydrogen.
Additional impacts include:
- raising community awareness on the use of hydrogen and address safety and other concerns
- provide a strong signal to electrolyser manufacturers for the potential deployment of large scale electrolysis
- assist in the development of the renewable hydrogen industry at scale
1. Energy Networks Australia, Gas Vision 2050, https://www.energynetworks.com.au/projects/gas-vision-2050
2. HyP SA is being delivered by AGN and has received $4.9 million in grant funding from the South Australian Government, and will be in operation from Mid-2020 for a period of five years http://blendedgas.agn.com.au/