December 2 (Renewables Now) - Australian Gas Networks (AGN) today announced the construction start of a pilot facility in South Australia that will produce green hydrogen and blend some of it into the local gas distribution network.
AGN, which is part of Australian Gas Infrastructure Group and operates natural gas transmission and distribution networks, will install a 1.25-MW proton exchange membrane (PEM) electrolyser at the Tonsley Innovation District, south of Adelaide. It will use electricity generated by renewable power plants to produce hydrogen that will be mixed with natural gas and distributed through the existing natural gas network. The renewable gas will contain a 5% green hydrogen blend.
Adelaide-based AGN expects to launch production at the new site around the middle of next year. According to its estimates, the Hydrogen Park SA (HyP SA) project, which was last month approved by the state government, will require some AUD 11.4 million (USD 7.7m/EUR 7m) in investments.
The project is being supported with a AUD-4.9-million grant from the South Australian Government’s Renewable Technology Fund. The developer says it is the first pilot for green hydrogen production of its scale and size in Australia and is in line with its vision to deliver 100% renewable gas.
"The decarbonisation challenge is huge and many solutions are needed for Australia to meet its emission reduction targets, and that includes gas stepping up to play its part," said Ben Wilson, AGN’s CEO.
The Aussie energy group added it is actively pursuing more hydrogen projects and will explore other options for using green hydrogen in transport.
(AUD 1.0 = USD 0.677/EUR 0.615)