The South Australian Government has approved the construction and operation of a $11.4 million hydrogen production facility by Australian Gas Networks (AGN).
The approval of AGN’s development application for its hydrogen production facility is the vital first step to commence construction at Hydrogen Park SA (HyP SA).
AGN received a $4.9 million grant from the SA Government’s Renewable Technology Fund to build and operate the project which will split water into oxygen and hydrogen gas before being blended with natural gas and supplied to consumers via the existing networks.
AGN CEO Ben Wilson said the development will be a significant milestone in SA’s transition to an affordable, reliable and cleaner energy future and is the first step to decarbonising SA’s gas networks.
“The decarbonisation challenge is huge and many solutions are needed for Australia to meet its emission reduction targets, and that includes gas stepping up to play its part,” said Mr Wilson.
“Developing the hydrogen economy will also play a key role and the momentum around hydrogen is building with burgeoning research and development underway.”
SA Minister for Energy and Mining Dan van Holst Pellekaan said the facility is a key component for the government’s renewable hydrogen plans.
“The release of our Hydrogen Action Plan this week shows we’re committed to growing hydrogen exports from SA, creating jobs and pushing renewable hydrogen into our energy mix,” said Minister van Holst Pellekaan.
This project is the first step in AGN’s vision to deliver 100 per cent renewable gas, which it is actively pursuing through additional hydrogen projects in its existing networks.
The HyP SA anticipates first production of hydrogen by mid-2020.
For more information visit the AGN website.
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