Energy firm Australian Gas Networks (AGN) has started construction of a $11.4m hydrogen park in South Australia.
The South Australian Hydrogen Park (HyP SA) will have the largest electrolyser in Australia and will support energy supplies while progressing towards the energy sector’s goal of net zero emissions by 2050.
The project, in the Tonsley Innovation District in Adelaide, will be supported by a South Australian (SA) government grant of $4.9m.
HyP SA plans to supply 700 nearby properties with hydrogen, produced by the electrolyser, which will be blended with natural gas.
Hydrogen is environmentally friendly because the gas burns carbon free. It will be mixed with the existing gas supply to bulk out the natural gases and reduce carbon emissions.
Minister for energy and mining Dan van Holst Pellekaan said: “Producing a clean burning gas like renewable hydrogen supports [industry body] Energy Networks Australia’s plan to advance gas networks towards net-zero emissions by 2050.”
Van Holst Pellekaan said the project will show how using electrolysers to produce hydrogen for the electricity and gas networks can support energy stability and increase renewable electricity generation capacity.
SA’s hydrogen production also provides opportunities to increase clean energy exports to countries such as Korea, Japan, China and Singapore.
Van Holst Pellekaan added: “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.”
Ben Wilson, CEO at AGN, commented: “Many solutions are needed for Australia to meet its emission reduction targets, and that includes gas stepping up to play its part.
“Developing the hydrogen economy will also play a key role, and the momentum around hydrogen is building with burgeoning research and development underway.”
The project is part of SA’s Hydrogen Action Plan and a wider green energy transformation.
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