Australia just announced plans to begin injecting up to 10% renewable hydrogen into existing gas lines in certain areas of Southern Australia and Victoria. The new initiative, backed by the government, will bring this new fuel to millions of homes.
The move won’t be happening just yet, but the plans will now be put in place to implement the changes by the end of 2022. The project will be backed by wind and solar energy giants Engie and Neoen.
The Australian Hydrogen Centre (AHC) will play a key role in the distribution process. 10% will only be the beginning, they intend to transition to 100% renewable hydrogen fuel in major cities, including Melbourne and Adelaide.
The Federal Government’s Australian Renewable Energy Agency (ARENA) has awarded $1.28 million in funding to Australian Gas Networks Limited (AGN) towards supporting the AHC project. Also funding the project are South Australia’s Department for Energy and Mining, and Victoria’s Department of Environment, Land, Water, and Planning.
Ben Wilson, Chief Executive Officer at AGN left a comment on the new initiative:
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 minimizing the current and future carbon footprint across the whole of our national gas distribution business. This public license 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.
A similar project is currently underway in the UK, as Keele University, in Staffordshire, is introducing 20% hydrogen into its existing natural gas network. If their trial is successful they plan to use it across the UK.
South Australia has many wind and solar resources already in place. They said, “We have significant natural advantages that can be leveraged to produce, consume and export 100% green hydrogen.” Last year Australia announced a Hydrogen Action Plan that would include using their hydrogen reserves to Asian countries including Japan and South Korea.
Hydrogen is becoming a more popular option to replace fossil fuels and, given the number of people who use natural gas to heat their homes, it could have a globally profound effect on decarbonization.
The South Australian Minister for Energy and Mining, Dan van Holst Pellekaan, said; “This project builds on the South Australian Government’s $4.9 million investment in Hydrogen Park SA that will see hydrogen blended with natural gas and delivered to 710 homes in the local community.”
