Australian Gas Networks (AGN) will build a $4.2 million gas injection facility in Gladstone to deliver renewable hydrogen into the city’s gas network.
It would be Australia’s first renewable hydrogen production facility able to deliver up to 10 per cent blended hydrogen across the city’s residential, small commercial and industrial customer base, the company said.
The project has attracted $1.78 million from the Queensland Government’s $15 million Hydrogen Industry Development Fund (HIDF) and is expected to be fully operational by December 2021.
It was announced as the city today hosted the Gladstone Hydrogen Forum, which drew more than 100 people.
AGN is part of the Australian Gas Infrastructure Group (AGIG), which is developing hydrogen projects across four Australian states.
“Australian Gas Networks, part of Australian Gas Infrastructure Group, is proud to partner with the Queensland Government on this ground breaking project,” chief executive officer Ben Wilson said.
“Gladstone will become the first entire city in Australia to be on a blend of natural gas and hydrogen.
“The project supports Gladstone’s vision to be a key hub for Queensland’s domestic and hydrogen export industry, just as it is for natural gas today.
“Queensland, and Australia as a whole, has the potential to be a renewable hydrogen superpower, with jobs and economic growth from supplying clean energy to regional and eventual metropolitan wide markets.”
Gladstone Mayor Matt Burnett said AGN had formed a partnership with Central Queensland University (CQU) providing access to the blending facility for CQU staff and students to build skills in hydrogen technologies.
“This is about creating more jobs in more industries, and Gladstone is perfectly placed to tap into the exciting renewable hydrogen industry,” he said.
Hydrogen Park Gladstone (HyP Gladstone), planned for a location on Derby St, will produce about 20kg of hydrogen per day using certified green power from the local power grid, to be then blended into the gas network.
State Development Minister Cameron Dick said that along with the AGN project, Gladstone had also been selected as the location for a proposed $1.61 billion industrial complex for the large-scale production of green hydrogen and ammonia (H2-Hub Gladstone).
“I can also announce today that Economic Development Queensland (EDQ) has approved a variation to ACCIONA’s Aldoga Solar Farm lease, to allow them to investigate renewable hydrogen production as part of the project. The variation allows an additional 24 months to explore feasibility,” he said.
“Since the release last year of the Queensland Hydrogen Industry Strategy 2019–24, we are seeing increased private sector investment and will continue to position Queensland to be at the forefront of renewable hydrogen production in Australia by 2030.”