Australia's Jemena to test blending renewable hydrogen into NSW gas network

Australia's energy infrastructure company Jemena has started blending renewable hydrogen into gas networks in New South Wales in a two-year trial, the Ministry of Industry, Energy and Emissions Reduction said Nov. 18.

The renewable hydrogen is to be produced at the Western Sydney Green Hydrogen Hub project, using solar and wind to feed electrolyzers, the statement said without detailing the percentage blend of hydrogen to the tested.

"This trial is an important step in getting clean hydrogen into the existing gas network and into NSW homes and businesses," Angus Taylor, Minister of Industry, Energy and Emissions Reduction said.

The Australian Renewable Energy Agency has supported Jemena's green hydrogen hub with A$7.5 million ($5.45 million) to build a 500 kW demonstration electrolyzer in western Sydney.

The project will blend renewable hydrogen into the existing gas network supplying 23,500 residential customers, 100 commercial customers and seven industrial customers, Jemena said.

The size of the electrolyzer indicates the fraction of hydrogen being blended will be small.

In Europe, permitted levels of hydrogen in the gas supply vary, from 0.1% in the UK to up to 12% in parts of the Netherlands. The HyDeploy project in the UK has seen up to 20% H2 blended into a local gas supply network. Current gas appliances are designed to operate with a blend of up to 23% hydrogen.

Australia released a National Hydrogen Strategy in 2019, which sets out a vision for Australia to become a major global hydrogen supplier by 2030.

The government is investing more than A$1.2 billion to accelerate the development of an Australian hydrogen industry, including A$464 million to develop up to seven clean hydrogen industrial hubs.

The hydrogen strategy, under its strategic actions, says it would enable blending of hydrogen with natural gas with an eventual use of 100% hydrogen in gas networks.

WA, Victoria projects

In August ATCO Gas Australia was awarded a grant of A$1.97 million ($1.43 million) to help decarbonize Western Australia's gas distribution network.

In May Australian Gas Infrastructure Group and Engie secured A$32.1 million in government funding to support the delivery of a new hydrogen blending project in Wodonga, Victoria – known as Hydrogen Park Murray Valley.

S&P Global Platts assessed New South Wales hydrogen (alkaline electrolysis, including capex) at A$5.74/kg Nov. 18, up 32% month on month.

New South Wales hydrogen (coal gasification with CCS, including capex) was assessed at A$3.76/kg Nov. 18, down 15% month on month.