Site works began this week at Australian Gas Networks' Hydrogen Park in South Australia as the state looks to lead the way in renewable technology and future fuels for road transport and other industries.
Hydrogen produced by a 1.25 megawatt electrolyser, the largest of its kind in Australia, using renewable electricity and water will be injected into South Australia’s gas supply as part of a five-year demonstration project at the Tonsley Innovation District.
The hydrogen will be blended with natural gas and delivered through the existing gas network to more than 700 properties in Mitchell Park at no additional cost to residents.
South Australia was looking to unlock the commercial potential of hydrogen and the Government had supported the $11.4 million Hydrogen Park with a $4.9 million grant.
Minister for Energy and Mining Dan van Holst Pellekaan said the project will demonstrate how integrating electrolysers into the electricity and gas networks can support energy stability.
“This is particularly important as more renewable electricity generation capacity comes onto the grid,” said Minister van Holst Pellekaan.
“Producing a clean burning gas like renewable hydrogen supports Energy Networks Australia’s plan to advance gas networks towards net-zero emissions by 2050.”
As South Australia moves to produce and consume 100 per cent green hydrogen it has positioned itself to export it to countries like the Republic of Korea, Japan, China and Singapore which have committed to creating a hydrogen-based economy.
“Exporting hydrogen made from South Australia’s abundant sun and wind resources presents a significant economic opportunity for our state and we are working towards creating this new industry,” said van Holst Pellekaan.
The electrolyser expected to arrive at Hydrogen Park SA early next year with hydrogen production scheduled to start in mid-2020.
The South Australian Government has further committed to support Australian Gas Infrastructure Group’s virtual Australian Hydrogen Centre that will focus on research, feasibility studies and sharing knowledge around greater use of hydrogen in the gas networks, including the findings from Hydrogen Park SA’s Mitchell Park project.