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Two-year green hydrogen trial begins in Western Sydney

In an Australian first, green hydrogen is being blended into gas networks in New South Wales. The two-year trial is being conducted by energy infrastructure company Jemena. 

Jemena is producing hydrogen from renewable energy at its $15 million Western Sydney Green Hydrogen Hub project, converting solar and wind power into renewable hydrogen via electrolysis — using electricity to split water into hydrogen and oxygen.

Minister for Industry, Energy and Emissions Reduction Angus Taylor has welcomed the development and said the trial is a major milestone for the development of the Australian hydrogen industry.

“This trial is an important step in getting clean hydrogen into the existing gas network and into NSW homes and businesses,” he said.

“Blending hydrogen into gas networks gives Australians choice and allows them to continue to enjoy the benefits of using gas with an even lower emissions product.”

The Federal Government has contributed $7.5 million to the Jemena Green Hydrogen Hub via the Australian Renewable Energy Agency (ARENA) to build a 500kW demonstration hydrogen electrolyser in Western Sydney.

Expanding a nascent industry

The Government published a National Hydrogen Strategy in 2019, setting out a vision for the nation to become a major global hydrogen supplier by 2030, and Taylor said the trial will help to develop and expand the industry in Australia. 

“Building domestic demand is critical to helping the industry scale up and achieve the goal of producing hydrogen at under $2 a kilogram,” he said.

The Australian 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.

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