The power-to-gas demonstration plant, to be called Hydrogen Park SA, will produce hydrogen from renewable electricity, which will then be injected into the local gas distribution network at the Tonsley Innovation District to provide low-carbon gas to homes and businesses.
"We are delighted that South Australia will lead the way with this pioneering technology," AGIG Chief Customer Officer, Andrew Staniford, said.
“The project is expected to be the first in Australia where renewable electricity is stored and distributed in the gas network as hydrogen, providing an additional market for fluctuating renewable electricity and thereby also improving the economics of renewable electricity.”
The project will involve the construction of a hydrogen production and distribution facility using a 1.25MW PEM electrolyzer to produce hydrogen utilizing electricity from the grid and potentially on-site solar.
The produced hydrogen will then be injected into AGIG’s local gas network to power the Tonsley Innovation District with the potential for expansion.
The pilot plant is expected to be Australia’s first integrated hydrogen-electricity-gas project. It is hoped the project will expedite research and development which will inform and accelerate a commercial hydrogen economy. It is considered a first step on the journey to a zero emission gas network.
Initial hydrogen production is due in mid-2020. AGIG’s project partners are Siemens, SA Power Networks and KPMG.
Siemens Australia Chairman and CEO, Jeff Connolly, said: “Hydrogen holds exciting potential for Australia, and it’s great to be partnering with the South Australian government and Australian Gas Infrastructure Group delivering proven and world leading hydrogen technology.”
Staniford concluded, “Hydrogen is an emerging industry, with real potential to develop into a global commodity utilized by homes, business, industry and vehicles.
“Given the early nature of the technology, it is key to bring together government, industry and researchers in one facility to work together to ensure these opportunities are realized and to educate and train our community.”