Clean hydrogen is being blended into the gas networks in NSW for the first time under a 2-year trial. Energy infrastructure company Jemena is producing the hydrogen from renewable energy at its $15 million Green Hydrogen Hub.
The Australian Government has supported the hub with $7.5 million to build a 500 kW demonstration hydrogen electrolyser in western Sydney.
The Hon Angus Taylor MP, Minister for Industry, Energy and Emissions Reduction, has welcomed the development.
‘This is a major milestone in the development of the Australian hydrogen industry,’ Minister Taylor said. ‘This trial is an important step in getting clean hydrogen into the existing gas network and into NSW homes and businesses.’
‘Blending hydrogen into gas networks gives Australians choice and allows them to continue to enjoy the benefits of using gas while an even lower emissions product. Building domestic demand is critical to helping the industry scale up and achieve the goal of producing hydrogen at under $2 a kilogram.’
The 2-year Jemena trial will convert solar and wind power into renewable hydrogen via electrolysis, the process that splits water molecules into hydrogen and oxygen. Hydrogen is a transportable and storable fuel that when used produces no carbon emissions.
The government is investing more than $1.2 billion to accelerate the development of an Australian hydrogen industry. The funding includes $464 million to develop up to 7 clean hydrogen industrial hubs in regional Australia.
Clean hydrogen could directly support 16,000 jobs by 2050, and an additional 13,000 jobs from the construction of related infrastructure. Australian hydrogen production for export and domestic use could also generate more than $50 billion in additional GDP by 2050.
photo: Minister Taylor at the Green Hydrogen Hub this week.