Page 9 - AsianOil Week 43 2020

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significantly reduce costs and open the hydro- ($713,000) towards a detailed supply chain
gen market in SA. The reduction in transport study.”
emissions also makes this a great move towards MacTiernan called on commercial groups
our goal of delivering green hydrogen to South interested in producing or using renewable
Australia.” hydrogen within the Oakajee Strategic Indus-
AGIG CEO Ben Wilson said HyP SA’s expan- trial Area (SIA) to submit expressions of interest
sion to supply industry had been part of the com- (EoIs) before December 24. The government has
pany’s original plan for the facility. He said: “This provisions in place to link the SIA to the Dampi-
initial partnership with BOC is a key enabler to er-to-Bunbury gas pipeline.
further potential expansion to SA and wider She added that the government had brought
industrial markets. It also brings us a step closer forward its target of hydrogen accounting for
to supplying hydrogen for vehicle refuelling in 10% of the state’s reticulated gas – liquid petro-
South Australia.” leum gas (LPG) that is delivered by pipeline –
AGN is set to finish final construction works from 2040 to 2030. The minister added: “If we
soon at the AUD11.4mn ($8.12mn) plant, fol- kept 2040 as our target, we were going to be lag-
lowing the successful installation of a Siemens gards rather than at the forefront.”
1.25-MW proton exchange membrane (PEM)
electrolyser. What next
HyP SA is likely just the first of an eventual AGN and AGIG are not the only operators
wave of such projects as AGIG looks to establish counting on hydrogen to provide a compelling
gas blending operations in other states. The com- counter-argument to full-scale electrification in
pany said it was in the detailed engineering and Australia.
design phase for a hydrogen production plant in Jemena in June to put hydrogen front and
Queensland, with a target start-up date of 2022, centre of the national energy strategy. Respond-
and that it also wanted to introduce hydrogen ing to the government’s Technology Investment
into Victoria’s gas networks. Roadmap (TIR), Jemena executive general
The company has also won backing from the manager of gas distribution Jennifer Purdie said
Western Australia government to assess how it was “time to challenge the notion that custom-
hydrogen can be introduced into its Dampier ers can only access renewable energy through
to Bunbury gas pipeline. The study is part of the electricity grid”.
the WA government’s ongoing push to develop The company said its New South Wales gas
its own hydrogen industry first outlined in its network could be repurposed to sell zero-carbon
Renewable Hydrogen Strategy, which was pub- gases, arguing that this would be a cheaper solu-
lished in July 2019. tion than adapting the electricity grid to handle
the same load.
Western agenda Jemena is currently conducting a green
WA Minister for Regional Development Alan- hydrogen trial in NSW at the Western Sydney
nah MacTiernan said this week that the state Green Gas Project. The project will convert solar
would continue to focus on core areas of support, and wind power into hydrogen gas, which will
including hydrogen blending in gas networks. then be stored for use in the company’s NSW gas
“We have identified 240 pieces of legislation network.
that might need to be changed. We have also In addition to the cost benefits, green hydro-
directed AUD1.68mn [$1.2mn] to private and gen also acts as a more efficient storage option for
public sector entities to support feasibility stud- excess renewable power generation than batter-
ies across seven proposed projects,” MacTiernan ies. Advocates of the technology must still over-
said at an industry event in Perth. come several hurdles on the way to proving that
She flagged up AUD18mn ($12.83mn) in adopting 100% hydrogen networks is not only
additional government funding for the hydro- possible but is also viable. One often cited issue
gen sector, following the release of AUD10mn is hydrogen embrittlement, wherein metal gas
($7.13mn) in conjunction with the launch of pipes and appliances will crack, requiring pipe-
its Renewable Hydrogen Strategy. The minister line and residential gas system upgrades.
said the government had earmarked AUD5mn Nevertheless, the federal government has
($3.56mn) of the additional funds for grant backed “clean” hydrogen – green hydrogen or
awards, with a portion of these ring-fenced for decarbonised blue hydrogen – with Austral-
blending studies. ian Energy Minister Angus Taylor revealing in
MacTiernan said: “We believe that blending September that the government had earmarked
into the existing gas reticulation system is going AUD18bn ($12.72bn) of funding over the next
to be a really important way of developing this decade for a portfolio of low-emissions technol-
industry early and we are providing AUD1mn ogies, including hydrogen.™

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