Australian energy and infrastructure services company Valmec Limited has been selected by Australian Gas Infrastructure Group (AGIG) to deliver Australia’s first renewable hydrogen production facility.

Valmec will provide engineering, procurement and construction (EPC) services on the innovative energy project that will produce renewable hydrogen gas.

Located at the Tonsley Innovation District in South Australia, Hydrogen Park South Australia (HyP SA) will produce renewable hydrogen using water and renewable electricity through a process known as electrolysis from mid-2020.

The hydrogen will be blended with natural gas and supplied to nearby homes and businesses via the existing gas network. There’s also potential for supply to industrials and transport via tube trailers.

AGIG said a 5% hydrogen blend is the first step to lowering greenhouse gas emissions. The company is also pursuing more projects, aiming to blend up to 10% hydrogen in South Australia and across the other regions it serves before 100% conversion.

Planning is underway for a National Hydrogen Discovery Centre to be located alongside HyP SA, enabling AGIG to engage with communities and stakeholders, provide education services, and facilitate project work to underpin similar developments around Australia.

AGIG expects to start construction in the second half of 2019, and the production of hydrogen by mid-2020. Once operational, HyP SA is expected to operate for at least five years.

Australia has committed to reducing carbon dioxide to between 26-28% below 2005 levels by 2030, and South Australia is targeting being carbon-neutral by 2050. Renewable hydrogen can play a major part in achieving these goals.

HydroPark SA

Source: Australian Gas Infrastructure Group