Australian Gas Infrastructure Group’s (AGIG’s) Australian Gas Network has begun construction on a hydrogen blending facility in Gladstone, which is set to deliver renewable hydrogen into the city’s gas network, servicing about 770 properties.

AGIG will deliver up to ten per cent hydrogen gas to customers with plans to eventually convert its entire Gladstone network to renewable gas.

More than $2.72 million has been committed to the project through the Queensland Government’s Hydrogen Industry Development Fund.

The Hydrogen Park (HyP) Gladstone project is expected to create new training, research and job opportunities for the region.

The project will also contribute to the state’s renewable energy targets of 70 per cent by 2032 and net zero by 2050, outlined in the Queensland Energy and Jobs Plan.

Once complete, the facility will be the first in Australia to blend renewable hydrogen into an entire gas distribution network supplying residential, commercial and industrial customers.

Queensland Deputy Premier, Steven Miles, said that the commencement of construction marks another important step forward to the 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,” Mr Miles said. 

“That’s why the Queensland 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.

Mr Miles said that 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.

Queensland Minister for Regional Development and Manufacturing and Member for Gladstone, Glenn Butcher, said that this AGIG project is an important stepping stone for Central Queensland.

“The first project of its kind in Australia, it will create training opportunities, new skills and jobs, while contributing to decarbonisation targets in our Energy and Jobs Plan,” Mr Butcher said. 

“Importantly, it will also deliver clean, affordable and reliable energy to Queensland households and businesses.

“Working with industry and our communities will be vital to ensure we seize all the opportunities arising from the transition to a net zero economy.

“We’re building industries of the future – and a stronger future for regional Queensland.”

AGIG CEO, Craig de Laine, said that 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,” Mr de Laine said. 

“Importantly, renewable gases such as hydrogen can be delivered safely, reliably and at very little incremental cost through our world-class gas distribution network.

Mr de Laine said that AGIG is focused on delivering its vision to provide renewable gas to its customers across Australia, which includes providing at least ten per cent renewable gas by 2030 and 100 per cent renewable gas by no later than 2050.

“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 legislation introduced to parliament last week are important parts of enabling greater investment in hydrogen and renewable gas infrastructure.”

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