In a crucial development for Victoria's energy infrastructure, Australian Gas Networks (AGN), part of the Australian Gas Infrastructure Group (AGIG), has completed a major upgrade of its gas mains, paving the way for the potential use of 100% renewable hydrogen.
This two-decade-long project, involving an investment of nearly A$600 million, has modernised the gas mains across Melbourne and regional areas, including Mill Park, Dandenong and Echuca.
In with the new
The upgrade involved replacing old steel and cast iron pipes with new polyethylene and protected-steel pipes, significantly enhancing the safety and reliability of the network. This modernisation also positions the mains to be compatible with renewable hydrogen, requiring minimal additional investment for this transition.
“Our mains replacement program, while driven by improving safety, means our AGN mains are now hydrogen-ready, with work to replace the mains on our other Victorian network, Multinet Gas Network, set to be complete in under a decade,” AGIG CEO Craig de Laine said.
“The majority of Victorians use gas today, and our customers tell us they want to use renewable gas into the future.
“It is that future we are investing in through our mains replacement program and beyond.”
This project is part of a broader shift towards renewable energy sources in Victoria.
AGIG's Hydrogen Park Murray Valley in Wodonga is set to supply hydrogen blends to 40,000 households and businesses in the region within the next 18 months.
Technically and economically viable
Research from the Australian Hydrogen Centre has outlined a technically and economically viable pathway to 100% renewable hydrogen use in Victorian homes and businesses, importantly at a comparable price to those paid for energy today.
“What’s more, this research shows development of the sector could create more than 15,000 new jobs across Victoria – 10,300 in construction and more than 5,300 ongoing,” de Laine said.
The company intends to continue investing in a low-carbon future, aiming to fully transition its gas networks to renewables by 2040 with a stretch goal of no later than 2050.
“The hydrogen-ready mains we now have can be the foundation for a clean, renewable energy system for the families, businesses and industries we serve,” de Laine emphasised.
“AGIG stands ready to build on our existing investments and help deliver a renewable gas future for Victorians.”