First hydrogen trial for NSW gas users

Clean hydrogen is being blended into the gas networks in New South Wales for the first time under a two-year trial starting today.

Minister for Industry, Energy and Emissions Reduction Angus Taylor has welcomed the development from energy infrastructure company Jemena, which is producing hydrogen from renewable energy at its $15 million Western Sydney Green Hydrogen Hub project.

“This is a major milestone for 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 Morrison Government, through the Australian Renewable Energy Agency (ARENA) has supported the Jemena Green Hydrogen Hub with $7.5 million to build a 500kW demonstration hydrogen electrolyser in western Sydney.

The two-year Jemena trial will convert solar and wind power into renewable hydrogen via electrolysis; the process by which electricity is used to split water into hydrogen and oxygen.

The Government 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 $1.2 billion to accelerate the development of an Australian hydrogen industry, including $464 million to develop up to seven clean hydrogen industrial hubs in regional Australia.

Clean hydrogen could directly support 16,000 jobs by 2050, plus an additional 13,000 jobs from the construction of related renewable energy infrastructure. Australian hydrogen production for export and domestic use could also generate more than $50 billion in additional GDP by 2050.

Hydrogen is a flexible, safe, transportable and storable fuel that when used produces no carbon emissions.

Photos are available here.

Media contact:

Minister Taylor's office 02 6277 7120