The South Australian Adelaide suburb of Mitchell has become the first place in Australia to receive a five percent green hydrogen blend gas in its mains supply.
The electrolyser producing the green hydrogen is owned by Australian Gas Infrastructure Group, which is also targeting a multi billion export industry.
AGIG will also supply Whyalla Steel Works with green hydrogen, which is replacing its current fossil fuel setup.
New South Wales has also been presented with two huge hydrogen hub proposals, the Hunter Hydrogen Valley and Squadron’s Port Kembla development.
Fortescue Metals and others are also proposing huge hydrogen developments in West Australia.
Adelaide hydrogen electrolyser currently Australia’s largest
But so far, the HyP SA (Hydrogen Park South Australia) 1.25 megawatt electrolyser is the largest operating in the country so far.
The plant sources low-carbon power from the grid during the day, when solar is plentiful. The energy is used to split water into hydrogen and oxygen gases.
The hydrogen is then added to the gas stream mix at a portion of five percent. Hydrogen can result in special piping being required for distribution, but at such a low concentration, it will not make any difference.
700 households are involved, but the number is expected to grow to thousands by the end of 2022 and to increase the proportion of hydrogen in the distribution system to 10 per cent. Only a proportion beyond that would start to require modified or new appliances.
Green hydrogen target of $2 per kilogram by 2030
The cost of producing hydrogen is currently high, well into the double digits per kilogram and way off the $2 target outlined in the low emissions technology roadmap.
But AGIG is upbeat, saying the figure will soon drop to between $ and $6 per kilogram. It is expected to be cheaper than $2 per kilo by 2030.
AGIG is owned by Hong Kong’s Cheung Kong Group, which is also building a hydrogen project in Gladstone. The whole town will receive a 10 percent hydrogen blend in its gas stream, including industry.
AGIG said the beauty of hydrogen is that the customer base and market is already there and there is a use for hydrogen from day one of operations.
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Green hydrogen projects like the one in Mitchell, Adelaide aim to help lower carbon emissions while powering their coverage areas. Learn more about similar projects and other energy sector developments at our blog and news section.
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