17 August 2023
Hydrogen-ready: Australia’s network is ready for renewable gas, as AGIG expands hydrogen investments
Renewable gas is not only a viable energy source that is lowering emissions today, but also a major long-term opportunity to meet our net zero targets, create a future-facing industry and provide Australian industry, business and homes with reliable, competitive and sustainable energy.
For decades, AGIG has provided the energy that is essential for millions of homes and businesses across Australia, delivered over 35,000 kilometres of distribution networks and more than 4,300 kilometres of transmission pipelines. Until now that network has delivered natural gas, and now we’re leading the switch to renewable gas with the support of our customers and stakeholders.
An IEEFA statement portraying industry investments in hydrogen readiness as being “a mere $19 million” deliberately ignores AGIG’s investments in significant hydrogen projects in South Australia, Victoria and Queensland.
Getting Hydrogen Ready isn’t a new initiative for us – we’ve been leading in this space for years as the owner and operator of Australia’s first megawatt-scale electrolyser and the largest operating electrolyser in the country, which is delivering blended hydrogen to thousands of homes today. This year alone, AGIG has –
- Expanded our Hydrogen Park South Australia project, from an initial pilot of 700 homes to 4000 homes with further expansion plans underway;
- Signed an arrangement to supply a South Australian government trial of renewable hydrogen-powered public buses;
- Achieved development approval for our Hydrogen Park Gladstone project which puts Gladstone on track to become the first gas network in Australia where the entire gas distribution network will supply blended hydrogen gas, supplying homes, businesses and industry;
- Taken Final Investment Decision on Hydrogen Park Murray Valley, a $53 million project which will deliver hydrogen to industry and transport and which will further expand the footprint of our hydrogen-blended gas products to residential customers; and
- Launched HyHome – Australia’s first home with appliances powered by 100% hydrogen energy, demonstrating the development of hydrogen-compatible appliances and a key step forward in providing customer choice in the energy transition.
These and other projects represent substantial investment and are an undeniable vote of confidence in the future of hydrogen and other renewable gases for Australia.
“Consumer risk” as referred to by IEEFA, in fact lies in the reliability gaps that exist in the electricity network, as forecast by experts. Neither the generation nor the transmission needed is anywhere near ready and more challenges surface every day in achieving social licence from communities; acquiring materials and labour; in managing environmental impacts and in exceeding cost and budget projections.
In contrast, our gas distribution network is ready – already built, underground and the majority of which is ready to carry hydrogen today. Over the past decade we have invested billions of dollars on our national network, including over $1.5 billion in our gas networks in Victoria alone, replacing cast-iron pipes with modern plastic pipes, making them a world-class asset capable of reliable, high-performance delivery of renewable gases for customers.
AGIG owns, operates and invests in infrastructure which delivers gas to more than two million homes and businesses. It powers generators, mines, manufacturers and household appliances and the combined network makes us one of the largest gas infrastructure businesses in Australia.
We manage over 40,000km of world-class distribution networks, more than 4,300km of transmission pipelines and 60 petajoules of storage capacity, valued at a combined $10 billion, and employ approximately 400 Australians with more than 1,600 contractors working on our business.
We are committed to playing our part in supporting Australia’s climate objectives which are aligned to our own low-carbon goals to deliver 100% carbon-free gas by no later than 2050, with at least 10% renewable gas blends to homes and businesses by 2030.
We believe that gas networks delivering hydrogen, and renewable gas more broadly, will be critical if we are to achieve Australia’s ambitious low-carbon targets. In support of this, we are leading the Australian renewable hydrogen industry, with the establishment of Hydrogen Park SA, the largest electrolyser in Australia; the construction of Hydrogen Park Murray Valley; our Hydrogen Home initiative and other renewable hydrogen and biomethane projects in development.
For Further Information Contact
Rachel Cameron – Head of Corporate Affairs
M 0425 199 184