The project is under construction and targets production of first ammonia from 2025 and lower carbon ammonia from 2026.

Related article: Woodside acquires US LNG group Tellurian

Woodside CEO Meg O’Neill said, “This transaction positions Woodside in the growing lower carbon ammonia market. The potential applications for lower carbon ammonia are in power generation, marine fuels and as an industrial feedstock, as it displaces higher-emitting fuels.

“This acquisition is a material step towards delivering our Scope 3 investment and abatement targets. Phase 1 has the capacity to abate 1.6Mtpa of CO2-e and with the addition of Phase 2 the Project has the capacity to abate 3.2Mtpa CO2-e, or over 60% of our Scope 3 abatement target.”

News of the acquisition comes after the WA Environmental Protection Authority (EPA)  rejected Woodside’s proposed Browse Gas project—Australia’s largest untapped conventional gas field located off the coast of the pristine Kimberley region in Western Australia.

Related article: Woodside leads carbon capture startup’s $10M capital raise

The EPA found Woodside’s proposal had unacceptable potential impacts on endangered Pygmy Blue Whales, the threat to endangered Green Turtles and the risk of pollution and oil spills at the highly biodiverse and fragile Scott Reef.

Only two other oil and gas proposals have been recommended against by the Western Australian EPA since the mid-1980s.

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The move comes after the ACCC warned the east coast could face gas shortages from 2027—a year earlier than initially forecast.

Related article: Gas supply warning clouds reality, analysis says

Australia produces more gas than it needs to meet its domestic supply, but most is contracted for export.

“As ageing coal generation comes offline in coming years, gas will continue to be needed to firm renewable energy generation and as a backup during peak energy use periods,” the minister said in a statement.

Permits will be finalised for Esso and Beach Energy in the Otway and Sorrell Basins, with any discovered gas to support the domestic market.

Exploration permits will also be finalised for Chevron, INPEX, Melbana and Woodside Energy on Australia’s west coast, supporting energy security in Western Australia. In addition, 10 permits will be finalised for carbon capture and storage exploration.

King said the finalisation of offshore exploration permits does not automatically allow new offshore gas production to occur.

“Separate and extensive safety and environmental approvals are required through Australia’s independent National Offshore Petroleum Safety and Environmental Management Authority,” the minister said in a statement.

The news drew ire from environmental groups, with Greenpeace Australia calling the decision “a step backwards”.

The Australia Institute also levelled criticism over the decision.

Principal advisor Mark Ogge said, “This government was elected to take action on climate change and reduce emissions, but they are opening new fossil fuel projects instead.

“Expanding Australia’s gas production in the middle of a climate emergency is not just short-sighted: it treats our Pacific Island neighbours and future generations with contempt.

Related article: Flexible gas backs record demand in NEM during chilly winter

“Sea dumping is a failed technology that is now little more than a delaying tactic for the fossil fuel industry. The fact that these permits are being issued to major fossil fuel companies, so that they can supposedly offset their emissions from other highly polluting projects, is a farce of the highest order.

“This has nothing to do with supporting renewables, it is about producing more gas for export.”

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The consideration for the transaction is an all-cash payment of approximately $1.8 billion.

Related article: Woodside leads carbon capture startup’s $10M capital raise

“The acquisition of Tellurian and its Driftwood LNG development opportunity positions Woodside to be a global LNG powerhouse,” Woodside CEO Meg O’Neill said.

“It adds a scalable US LNG development opportunity to our existing approximately 10Mtpa of equity LNG in Australia. Having a complementary US position would allow us to better serve customers globally and capture further marketing optimisation opportunities across both the Atlantic and Pacific Basins.

“The Driftwood LNG development opportunity is competitively advantaged. Woodside expects to leverage its global LNG expertise to unlock this fully permitted development and expand our relationship with Bechtel, which is the EPC contractor for both Driftwood LNG and our Pluto Train 2 project in Australia.

“Through this acquisition, we are delivering on our strategy to thrive through the energy transition. Woodside believes that LNG will play a key role in the energy transition and is well positioned to deliver the energy the world needs while delivering significant value to our shareholders.”

Driftwood LNG is a fully permitted, pre-final investment decision (FID) development opportunity located near Lake Charles, Louisiana. The current development plan comprises five LNG trains through four phases, with a total permitted capacity of 27.6Mtpa.

The foundation development includes Phase 1 (11Mtpa) and Phase 2 (5.5Mtpa). Woodside is targeting FID readiness for Phase 1 of the Driftwood LNG development opportunity from the first quarter of 2025.

Related article: Woodside’s climate plan rejected by shareholders at AGM

Under the proposed transaction, Woodside will acquire 100% of the issued and outstanding shares of common stock of Tellurian Inc. Tellurian’s Board of Directors has approved the transaction and has recommended that its shareholders approve the transaction. The transaction is targeting completion in the fourth quarter of the 2024 calendar year.

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AEMO flagged possible supply shortages on peak demand days in Victoria until the end of September due to tight market conditions caused by cold weather and production issues at Longford gas plant, which in turn have depleted storage levels in eastern Australia. The market operator called for new gas supplies to address supply gap risks.

Related article: ACCC: Gas shortfall less likely as supply outlook improves

However, IEEFA’s analysis suggests that there is no need for the development of additional gas supplies, either to meet export demand or to address supply gaps. Further, the analysis shows that there are profitable options to reduce gas demand in the southern states that would not only address the risks of supply gaps but would also reduce household energy bills. These would add further momentum to already declining gas demand on the east coast.

Average daily gas consumption on the east coast dropped 13% from FY2012-13 to FY2022-23 (to 1,483TJ/d), and has fallen further in the first nine months of FY2023-24 (to 1,257TJ/d). Declining use of gas for power generation has dragged overall gas consumption in eastern Australia down over the same period (Figure 1).

“While AEMO forecast supply gaps, in reality there is no shortage of gas on the east coast given that about 80% of gas produced in eastern Australia is either exported via the LNG plants in Queensland or used to freeze that gas for export,” says the report’s author Kevin Morrison, IEEFA energy finance analyst, Australian LNG/gas.

Figure 1: Eastern Australia gas consumption

Most of the LNG produced in eastern Australia is supplied under long-term LNG export contracts, which are set to expire in the mid-2030s.

Geoscience Australia estimates that 2P reserves at Queensland’s coal-seam gas (CSG) fields are sufficient to cover the existing LNG contracts for the three Gladstone plants and beyond, until 2040, when operators such as Santos aim to be net zero in their upstream operations.

Declining southern gas production explains the tightness in eastern Australia’s gas market given most domestic demand is in Victoria. Tight market conditions have been exacerbated by unplanned maintenance this year at the Longford gas plant, which processes gas from the Gippsland Basin.

Production in Queensland, which has emerged as a major gas supply source over the past decade due to development of its CSG fields, is starting to plateau. Output at three of the five largest CSG fields in the state has fallen by 20-34% since 2019.

“The decline in three of Queensland’s largest CSG fields means new supply is unlikely to be as prolific as the most profitable fields tend to be developed first, followed by the less economic fields,” Morrison says.

The Australian government estimates that new supplies from undeveloped CSG fields in Queensland’s Surat Basin would cost A$11.64/GJ delivered to Melbourne, well above historical price levels.

Other areas hailed as potential new sources of gas by the industry will be even more expensive. Gas from the undeveloped Narrabri fields northern NSW would cost an estimated A$13.50/GJ delivered to Melbourne, and A$14.97/GJ from the Northern Territory’s undeveloped fields.

Related article: AEMO says renewables “the most efficient path” to net zero

“These new sources of gas will push up gas prices, further contributing to already challenging market conditions for commercial and industrial gas users,” Morrison says.

“At these price levels, we are likely to see further demand destruction and offshoring of Australian manufacturing.”

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Related article: Gas supply issue triggers power outage in Top End 

Synchronous condenser projects will further assist in stabilising the grid as more renewable energy is generated and deliver Essential System Services currently provided by existing rotating generators.

The synchronous condenser complements Territory Generation’s big battery, the 35MVA DK BESS and the recently announced DK BESS 2 to increase stability of the power system.

This investment in the electricity grid is designed to enable further uptake of renewable energy.

The project has been developed in consultation with Northern Territory Government stakeholders to align with the Immediate Investment Plan.

Territory Generation CEO Gerhard Laubscher said, “The Frame 6B turbines have served the power system well over the last 40 years, and Territory Generation is excited to repurpose an existing asset to contribute to the future energy requirements of the power system.

Related article: Northern Territory to upgrade substation at Berrimah

“The Channel Island Power Station synchronous condenser conversion project aligns with Territory Generation’s Fleet Transition Plan while advancing Northern Territory Government renewables and emissions objectives.”

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Delivered by Transport for NSW, the M12 will provide direct access to the Western Sydney International Airport at Badgerys Creek and connect to Sydney’s motorway network.

Related article: Zinfra prepares to open new depot in Pakenham

Navigating heritage underground water mains, critical interstate gas pipelines servicing NSW and Victoria, and crossing multiple major Sydney roads, Zinfra successfully managed the relocation of around two kilometres high-pressure pipeline and a pressure-reducing station.

Zinfra general manager of gas services Craig Farrugia said working within a ‘live’ gas environment required skill, patience, and a lot of critical planning.

“Working closely with Transport for NSW and contractor John Holland, our highly qualified team carried out precision horizontal directional drilling to ensure the new pipeline achieved minimum safe distances from the underground infrastructure while avoiding disruptions to motorists,” Farrugia explained.

“We were dealing with critical gas pipelines that service communities from Newcastle to Victoria and had to ensure that supply was not disrupted while also enabling work on the motorway and surrounding roads could continue as scheduled.

“The Zinfra team was agile throughout the works, often shifting plans to ensure critical project construction milestones could be met. This included adjusting plans to incorporate a small 140m drill underneath an animal crossing and avoiding surface disruptions.

Related article: Zinfra shows off 1km drill at Port Kembla Pipeline

“Safety is always our number one priority, and we pride ourselves on delivering hazard-resilient energy infrastructure. With our quality assurance systems in place, the Zinfra team worked swiftly in a live gas environment to deliver the new pipeline within metres of the bustling M7,” Farrugia said.

This achievement was carried out over five months and delivered on time. No motorists were disrupted by Zinfra’s work and most importantly no customer had their gas supply disrupted as a result of the relocation of sections of critical gas pipeline.

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The Climate Council’s new report, Powering Past Gas: An Energy Strategy that Works, says Australia does not need new gas projects as the world will shortly be awash with cheap gas at the same time as this fossil fuel will play a shrinking role in our domestic energy mix and that of overseas trade partners like Japan.

Related article: Australia’s Future Gas Strategy backs long-term gas drilling

Climate Councillor Greg Bourne said, “More gas means more harmful climate pollution, endangering our homes and the places we love and putting our kids’ futures at risk. It’s time for Australia to power past gas and turbocharge our switch to clean energy.

“Gas has a small, shrinking and short-term role to play in our energy mix. We can already meet much of our energy needs with renewables, like solar and wind. If we stopped exporting so much gas, current projects would be enough to supply our domestic gas needs for more than 60 years.”

Climate Council senior researcher Dr Wesley Morgan highlights the global shifts in energy consumption: “The global energy landscape is rapidly changing. Nations that have traditionally purchased Australian gas, such as Japan, South Korea, and China, are moving to renewables to slash their climate pollution. As we approach 2030 and these countries embrace clean energy, their demand for gas will decline, which means Australian gas expansion is a recipe for economic and environmental chaos.

“Australia must respond to these global shifts or risk being left behind. With new gas projects in the US and Qatar producing massive amounts of new gas, at much lower costs, it’s highly unlikely that new Australian gas projects will be profitable.

Related article: Oil and gas giant Santos just copped a large fine. Here’s why.

“Australia should take control of our own energy and economic future as these global trends accelerate. Now is the moment for Australia to start a sensible phase-out of gas exports as we ramp up the clean alternatives that the Albanese Government has put at the heart of its Future Made in Australia plans.”

The Powering Past Gas report offers a powerful alternative plan to the government’s Future Gas Strategy by advocating for a strategic phase-down of gas exports, accelerated electrification at home and a proper domestic reservation policy that prioritises meeting Australia’s shrinking gas needs first.

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Shadow Energy Minister Ted O’Brien said the Labor government’s commitment to cut greenhouse gas emissions by 43% by the end of the decade was unachievable.

“The only way now that Labor can achieve its 2030 target, is to collapse industry. We will not have a bar of it from the Coalition,” O’Brien said.

Related article: Report: Nuclear SMRs ‘too expensive, too slow, and too risky’

While projections from the Climate Change Authority confirmed Australia was not on track to meet the 2030 Paris Agreement target, they indicated that Australia could come very close to the goal if government policies were enacted as promised.

With the Labor government has committed to a renewable energy target of 82% by 2030, the Coalition also said that would be impossible to meet.

The Coalition has repeatedly delayed the release of its own policy, but said it would rely heavily on gas and nuclear power.

O’Brien refused to say whether the Coalition would adopt any targets at all before 2050.

The Coalition’s plan has been slammed by renewable energy advocates.

Climate Council CEO Amanda McKenzie said, “[Opposition leader Peter] Dutton’s climate policy is a disaster, and the consequence for Australians would be more extreme heat, fires and floods. Instead of ripping up Australia’s 2030 climate targets, Peter Dutton must listen to the communities already ravaged by worsening climate disasters.

“There are 195 countries signed up to the Paris Agreement. Opting out would make Australia a global laughing stock.

“The Liberals haven’t learned the lesson Australians gave them at the last election: this is more of the same from the party who already gave us a decade of denial and delay on climate.”

In response to the Coalition’s plans to adopt nuclear power in Australia, the Institute for Energy Economics and Financial Analysis (IEEFA) Australia’s CEO Amandine Denis Ryan said, “The research by IEEFA’s nuclear experts calls into question whether nuclear makes financial sense for Australia, for a multitude of reasons—timing, cost, compatibility with renewables and liability issues to cite just a few.

Related article: Nuclear six times more expensive than renewables

“Our research shows that nuclear reactors—both small modular reactors (SMRs) and gigawatt-scale reactors—in comparable countries have consistently taken longer and have been more expensive to build than expected.

“For a country like Australia, starting from scratch, we expect that nuclear power reactors would not reach commercial operation before the 2040s, would come at a high cost, and require substantial government support.

“Nuclear plants in Australia cannot be built in time to replace Australia’s fleet of coal power stations, more than 90% of which are expected to retire in the next 10 years. Our research aligns with CSIRO and the regulators’ assessment that it would take at least 15 years to first production.”

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Analysts have identified a looming global LNG supply glut in the next few years, as a wave of investment in new production by low-cost suppliers comes online. Meanwhile, the map of LNG consumption is being redrawn, with demand among established major buyers of Australia’s LNG about to fall or already falling.

Related article: Santos slapped with $2.75M fine by energy regulator

IEEFA’s report, The Future of Australian LNG, examines how these shifts in the global LNG landscape will affect Australian producers and exporters. It presents an outlook where Australia’s LNG industry will go into decline amid tightening competition and slowing demand.

IEEFA lead analyst, Australian gas, and the report’s co-author Joshua Runciman, says: “It’s starting to seem a long time since Australia was the world’s largest LNG exporter.

“Between now and 2028, global LNG markets will see a staggering 40% increase in supply, driven by unprecedent investments in new capacity by low-cost suppliers such as Qatar. This will see the market flooded with cheap LNG, leaving Australia’s industry, with its relatively high costs, potentially struggling to compete and remain viable.

“At the same time, key buyers of Australian LNG such as Japan and South Korea are decreasing their LNG consumption as they diversify away from LNG. That leaves emerging markets as the main drivers of demand, but there is considerable uncertainty over how much demand growth we can expect there.”

The situation worsens moving into the 2030s, as the long-term sale and purchase agreements (SPAs) that account for about three quarters of Australia’s LNG exports begin to expire. Australia will face increasing competition to secure extensions on these contracts.

If it cannot do so, it will be forced to sell growing volumes of uncontracted LNG capacity into spot markets, where it will need to compete with LNG from Qatar as well as surplus LNG from portfolio players and major buyers.

IEEFA energy finance analyst, Australian gas and report co-author Kevin Morrison says, “Australian LNG producers are likely to become increasingly exposed to the LNG spot markets from 2030, which by then will be awash with uncontracted gas looking for end buyers.

“It’s widely expected, including by IEEFA, that future LNG spot prices will fall due to oversupply, which could lower the returns to any Australian LNG producers with exposure to spot markets. This could include contracted and uncontracted LNG volumes, with Santos having a contract with pricing based on the Asian LNG spot market price.”

These challenges, along with high capital costs, mean Australia is unlikely to see any new LNG projects reach final investment decision (FID), with for example the NTLNG project linked to the Middle Arm precinct having capital costs materially higher than the total cost of production from Qatar LNG. The development of new gas fields to backfill existing LNG trains could also be at risk, while existing LNG projects may also face cost pressures.

Moreover, tightening domestic supply conditions and a need to maintain social licence will likely see gas that could be exported increasingly diverted to the domestic market.

Related article: Australia’s Future Gas Strategy backs long-term gas drilling

As a result of all these factors, Australia’s export volumes are likely to decline in the coming years. This could lead to the mothballing of LNG and gas infrastructure before the end of its useful life, undermining the returns investors had initially anticipated. Early retirement of infrastructure would also bring forward decommissioning obligations, and substantial costs.

Runciman adds: “The overall picture that comes out of our research is that Australian LNG faces a gloomy future, with it now entering a period of sustained decline. It is vital that Australia shifts its focus to developing new export markets in which Australia is likely to have a comparative advantage.”

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Related article: ZEN partners with Mitsubishi’s DGA on green hydrogen

The MoU between Solarig and Jemena focuses first on the development of hydrogen production and blending facilities in regional New South Wales, which will initially inject up to 35Tj of renewable hydrogen per year into Jemena’s New South Wales gas distribution network.

If successful, both parties will work to further develop additional renewable hydrogen initiatives helping to build Australia’s renewable hydrogen market, and positioning NSW as a prominent national and international hub.

Jemena will undertake feasibility assessments for renewable hydrogen to be blended into the network so it can be used by homes, businesses, and industrial customers downstream of the injection site.

Jemena managing director David Gillespie said, “Australia is right in the midst of a once-in-a-lifetime opportunity to decarbonise our energy sector. But we know there is not one silver bullet that is going to help us reach our emission reduction targets.

“We are going to need a mix of renewable energy fuels to ensure Australia can reach net zero, while still delivering safe and reliable energy. Forming these types of relationships is essential to developing a robust renewable gas sector.”

Related article: Regulator fines Jemena over alleged gas breaches

The Solarig project in regional NSW is one of the first commercial renewable hydrogen facilities proposed for connection to the Jemena network and, subject to meeting the pre-feasibility requirements, will be one of the first commercial renewable hydrogen blending projects in Australia.

The post Jemena and Spain’s Solarig to partner on renewable hydrogen appeared first on Energy Source & Distribution.

Related article: Australia’s Future Gas Strategy backs long-term gas drilling

Climate communications group Comms Declare has asked the Australian Competition and Consumer Commission (ACCC) to investigate claims by the Australian Gas Network (AGN) as part of its sponsorship of the hit cooking show.

Specific claims in the complaint include MasterChef Australia host Andy Allen in Episode 4 saying, “And I’m excited to say this year, MasterChef is going greener with renewable gas”.

Comms Declare founder Belinda Noble said, “We believe that hundreds of thousands of MasterChef Australia fans are being deceived into thinking that the gas used in the program is good for the planet.

“The biomethane and grey hydrogen used in the MasterChef Australia kitchen is not renewable, not low emissions, not commercially viable and not available in ordinary Australian homes.

“We call on MasterChef Australia producers to drop this polluting sponsor and move to induction cooking, like their counterparts around the world.”

An AGN spokesperson said, “Australian Gas Networks is providing biomethane and hydrogen to MasterChef Australia to practically demonstrate that customers can cook with a low-carbon solution that can be delivered by existing gas networks to support Australia’s transition to net zero.

“Throughout the MasterChef Australia sponsorship, we have been clear about the nature of the sponsorship and the gas used on set. We have taken care to ensure we accurately described the gas we were supplying.”

Related article: Momentum Energy incentivises customers to quit gas

The complaint was prepared and lodged by the Environmental Defenders Office.

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With Australia being one of the world’s largest exporters of liquefied natural gas (LNG),  Resources Minister Madeline King said gas would be needed “through to 2050 and beyond” in the global shift to cleaner energy.

Related article: Woodside’s climate plan rejected by shareholders at AGM

“It is clear we will need continued exploration, investment and development in the sector to support the path to net zero for Australia and for our export partners, and to avoid a shortfall in gas supplies,” she said.

The Future Gas Strategy involves six principles that will underpin government policy on gas:

• Australia is committed to supporting global emissions reductions to reduce the impacts of climate change and will reach net zero emissions by 2050.
• Gas must remain affordable for Australian users throughout the transition to net zero.
  New sources of gas supply are needed to meet demand during the economy-wide transition.
• Reliable gas supply will gradually and inevitably support a shift towards higher-value and non-substitutable gas uses. Households will continue to have a choice over how their energy needs are met.
• Gas and electricity markets must adapt to remain fit for purpose throughout the energy transformation.
• Australia is, and will remain, a reliable trading partner for energy, including LNG and low emission gases.

“Ensuring Australia continues to have adequate access to reasonably priced gas will be key to delivering an 82% renewable energy grid by 2030, and to achieve our commitment to net zero emissions by 2050,” Minister King said.

“The strategy makes it clear that gas will remain an important source of energy through to 2050 and beyond, and its uses will change as we improve industrial energy efficiency, firm renewables, and reduce emissions.

“But it is clear we will need continued exploration, investment and development in the sector to support the path to net zero for Australia and for our export partners, and to avoid a shortfall in gas supplies.”

The Climate Council labelled the government’s Future Gas Strategy as a regressive echo of the past.

Climate Council Head of Policy and Advocacy Dr Jennifer Rayner said, “[This] announcement is more Back to the Future than Future Made in Australia. Australia is already using less gas, so the suggestion we need more of it sounds like Scott Morrison’s gas led recovery’, not Anthony Albanese’s ‘renewable energy superpower’.

“More gas means more climate pollution and a more dangerous future, it’s that simple. The Albanese Government has a choice: cut climate pollution and seize the decade by scaling up clean energy, or support new gas projects. It can’t do both.

Related article: Climate Council and Sarah Wilson launch ‘I Quit Gas’

“The strategy seems to ignore forecasts of a global oversupply of gas and the government’s own plans to develop the workforce and supply chain for clean industries, which can power the next era of Australian prosperity if we go all in on them now.

“This can be Australia’s moment to start a sensible phase out of gas as we scale up the clean alternatives. More gas is a bad bet, against a safe climate future and a thriving clean economy.”

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Momentum Energy will cover the gas abolishment fee of $242 for Victorian customers who work with Melbourne-based business Goodbye Gas to fully electrify their homes.

Related article: Victoria to phase out gas in new homes from 2024

The abolishment fee of $242 (including GST) will be paid as a credit on the customer’s final gas bill and only applies to existing gas customers who engage with Goodbye Gas to fully electrify their homes.

Momentum Energy is the mainland retailer of Hydro Tasmania, Australia’s largest generator of renewable energy. Momentum has around 130,000 electricity customers in the National Energy Market and around 70,000 gas customers in Victoria.

“It might seem strange for a gas retailer to be incentivising its own customers to transition away from gas, but Momentum wants to see more of our customers living fully electric lives—for their wallet, for the planet and to support Australia’s net zero carbon emissions goals,” Momentum Energy managing director Lisa Chiba said.

“Going all-electric—particularly when it’s combined with adding solar panels—is one of the most impactful changes individual consumers can make to help the planet.

“This is an entirely voluntary program and we will continue to support our customers who keep using gas. But given the long-term shift to decarbonise the grid, the argument for electrification will get even stronger as this becomes a reality.”

Goodbye Gas director Peter Steele said it was a significant development for a mid-sized retailer like Momentum to be encouraging its customers to switch from gas.

“Momentum Energy’s forward-thinking offer removes a key cost barrier—the abolishment fee—and we are excited to be supporting their customers to make the switch,” he said.

Related article: ACT passes law to ban new fossil fuel gas connections

According to Rewiring Australia, the average running costs of gas and petrol homes is $5,300 per year, while an electrified home with rooftop solar has running costs of about $1,850 per year. That covers electricity, heating and cooling, cooking and vehicle costs.

In terms of emissions, research by the International Energy Agency shows that just switching to a hot water heat pump from a gas boiler can reduce greenhouse gas emissions by 20%, even when running on emissions-intensive electricity.

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Related article: Hydrogen Park SA to be industry supplier

Australia’s first Hydrogen Park in the Tonsley Innovation District is already powering thousands of homes with a 5% blend of renewable hydrogen with natural gas—but this is now increasing to 10%.

This is the highest concentration of hydrogen-blended gas in Australia, and underscores the findings of recent research from the Australian Hydrogen Centre, which showed South Australia’s initiative to blend hydrogen into the state’s gas networks could pave the way for the abundant element to eventually supply 100% renewable hydrogen through the state’s distribution networks.

Renewable hydrogen can be used in the same way as natural gas, heating homes and businesses, generating electricity and as a transport fuel.

There remains significant opportunity for Hydrogen Park SA and other South Australian renewable gas projects to supply renewable gas directly to customers via existing networks.

South Australian Energy Minister Tom Koutsantonis said, “Last year we saw this project extend to almost 4000 houses, and now we’re seeing an exciting new milestone, an Australian-first 10 per cent blend of renewable hydrogen into the gas network.

“This just underlines the potential for hydrogen to help reduce natural gas consumption, and emphasises the major role it will play in our state’s energy mix.”

Australian Gas Infrastructure Group CEO Craig de Laine said, “Careful consideration of the required regulatory and investment settings have enabled the renewable gas industry to grow in South Australia.

Related article: Greenhill to build $425m biomass-to-hydrogen hub in SA

“We hope this continues long into the future as we have plans to continue to work with the South Australian Government to deploy similar facilities of greater scale and customer reach.”

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