The Australian Gas Infrastructure (AGIG), owned by Hong Kong conglomerate CK, plans to begin supplying a 5% hydrogen mixture to its gas pipelines to supply consumers in Mitchell Park, a suburb of the South Australian capital of Adelaide.
AGIG produces hydrogen at its Hydrogen Park plant in Tonsley, south of Adelaide, using water and electricity from wind and solar photovoltaic sources. In the five years that the pilot project is expected to take place, AGIG should gain experience to build a larger natural gas /hydrogen blending facility.
AGIG is also working to expand its hydrogen blending operations in South Australia to supply a 10% hydrogen blend to the pipeline network and plans to supply the hydrogen blend from its Hydrogen Park plant in Gladstone, Queensland, which is set to begin operations in 2022.
Australia's largest gas operator APA is working on a pure hydrogen pipeline project in Western Australia that will connect onshore gas fields in the Perth Basin to the Dampier-Banbury gas pipeline.
“The project proposes to convert the Parmelia gas pipeline section into Australia's first hydrogen-ready pipeline, making it one of five hydrogen-ready pipelines in the world,” APA said.
About two-thirds of Australia's gas production is used as feedstock for LNG exports.
According to APA estimates, up to $ 11 trillion will be invested in the global hydrogen sector. The Australian Government's National Hydrogen Strategy, released at the end of 2019, outlines plans to convert up to 10% of the domestic gas network to hydrogen transport.