Australian Gas Infrastructure Group (AGIG) has started construction of Hydrogen Park (HyP) Gladstone – Australia's inaugural city-wide renewable hydrogen blending initiative.
The project which received up to A$2.72 million in backing from the Queensland Government's Hydrogen Industry Development Fund, serves as a pivotal development in advancing Queensland's hydrogen economy.
Scheduled to be operational by early 2024, HyP Gladstone is set to supply nearly 800 residential and commercial properties in Gladstone and Barney Point. The facilities will receive a blend comprising up to 10% renewable hydrogen in their existing gas supply, requiring no alterations to appliances, connections or customer billing.
“The importance of renewable gas, including hydrogen, is becoming clearer by the day," AGIG CEO Craig de Laine said
"Customers, including our large industrial customers, are keen to access renewable gas options such as renewable hydrogen to help meet Safeguard targets and to deliver Queensland’s low carbon objectives more broadly.
“HyP Gladstone builds on AGIG’s experience in renewable hydrogen project development in Australia. As Australia’s first city-wide project, HyP Gladstone takes a leap forward in showcasing the low-carbon future of gas supply in Australia.
“Importantly, renewable gases such as hydrogen can be delivered safely, reliably and at very little incremental cost through our world-class gas distribution network.
“AGIG is focused on delivering its vision to provide renewable gas to our customers across Australia, including in Queensland. This includes by providing at least 10% renewable gas by 2030 and 100% renewable gas by no later than 2050,” said de Laine.
“We appreciate the Queensland Government’s ongoing support of HyP Gladstone and the broader actions they are taking to develop a hydrogen industry in the state. Queensland is very well placed to benefit from this new low-carbon industry and the jobs it will create, including in regions such as Gladstone.
“Initiatives like the Queensland Government’s Hydrogen Industry Development Fund, the Queensland Energy and Jobs Plan and the landmark Hydrogen Industry Development Amendment Bill recently introduced to parliament are important parts of enabling greater investment in hydrogen and renewable gas infrastructure.”
Key focus
A cornerstone of AGIG's strategy is enhancing the capacity and capabilities within the communities it serves. To this end, AGIG has entered a partnership with Gladstone-based construction firm Walz, which has been named the project’s principal contractor, thereby retaining employment within the region.
In a concerted effort to augment hydrogen-specific competencies and STEM education, AGIG is collaborating closely with CQUniversity. This alliance aims to foster the smooth transition of expertise from academic research to the industrial sector, positioning the region to fully exploit emerging opportunities in the hydrogen sector, including the creation of specialised employment.
Renewable gas holds significant promise in facilitating Australia's energy transition towards a more sustainable future. By optimising existing infrastructure, renewable gas not only fulfils customer and economic needs but also contributes to environmental sustainability through carbon dioxide reduction.
Deputy Premier of Queensland Steven Miles said: “Today marks another important step forward to our state’s future as a renewable energy powerhouse.
“Queensland is leading the charge in growing the green hydrogen sector and our government is committed to driving all the opportunities that this brings.
“That’s why the Palaszczuk Government has committed more than $165 million to support renewable energy and hydrogen-related industry development, including the Hydrogen Industry Development Fund.
“Our regions are uniquely set up to support the shift to new, high-value industries like renewable hydrogen that will set Queensland up for prosperity for decades to come.
“With its port facilities, access to infrastructure and skilled workforce, Gladstone is positioned perfectly to tap into the renewables revolution.
“Earlier this year I released our Queensland New Industry Development Strategy, which aims to make this the state of opportunity in a decarbonising world.
“This project is a great example of how we are powering towards a cleaner and greener future and placing Queensland at the forefront of hydrogen production.”
Who is AGIG?
AGIG is a prominent player in Australia's gas infrastructure sector, supplying gas to more than two million residential and commercial properties. The network powers various entities, from generators and mines to manufacturers and household appliances, making AGIG one of Australia's most expansive gas infrastructure companies.
With an extensive asset base comprising in excess of 35,000 kilometres of high-quality distribution networks, more than 4,300 kilometres of transmission pipelines and 60 petajoules of storage capacity, AGIG's combined assets are valued at A$10 billion. The firm employs roughly 400 Australians and engages more than 1,600 contractors.
As a frontrunner in Australia's burgeoning renewable hydrogen industry, AGIG has been instrumental in establishing Hydrogen Park SA, Australia's largest electrolyser, along with Hydrogen Park Murray Valley and various other renewable hydrogen and biomethane projects under development.
AGIG is committed to a low-carbon future, aiming to supply 100% renewable gas by 2050. It also plans to deliver a minimum of 10% renewable gas blends to residences and businesses by 2030, aligning with emission reduction objectives.