AGL Energy has partnered with leading industry bodies to lead a feasibility study into turning its Torrens Island site into a green hydrogen production facility.
The study will demonstrate the commercial and technical feasibility of establishing a renewable hydrogen hub and the production of hydrogen-derived products at Torrens Island to serve both domestic users in South Australia and interstate, as well as wider export markets.
The feasibility study, being carried out by independent advisory firm GHD Advisory, will map key operational and commercial plans for the project, outline the development of a production timeline and is expected to be completed by the end of 2022.
Along with AGL, the feasibility study will leverage the input of key industry and consortium partners across multiple sectors which have signed Memorandums of Understanding in this context:
- Adbri– a leading manufacturer of cement, lime and pre-packaged dry-blended products
- Brickworks – Australia’s leading domestic manufacturer of building products
- Flinders Ports – South Australia’s leading port operator
- INPEX CORPORATION – global energy exploration and production company
- Osaka Gas Australia, a wholly-owned subsidiary of Osaka Gas Co Ltd – global natural gas and power company
- SK ecoplant, a subsidiary of the Korean SK Group – providing eco-friendly business solutions, projects and infrastructure
- Spark Renewables – a leading renewable energy developer and owner
AGL Chief Operating Officer, Markus Brokhof, said the feasibility study project will play a crucial role in establishing a clean hydrogen industry in Adelaide and South Australia.
“This is another big step forward in AGL’s vision for an industrial energy hub at the site of our Torrens Island Power Station and we are coming closer to repurpose the site,” Mr Brokhof said.
“With the strong support of large industry partners, AGL’s vision is to establish a clean hydrogen industry in Adelaide, and support the creation of an energy efficient, low-carbon ecosystem and circular economy.
“South Australia is emerging as a leader in the development of a hydrogen industry, led by a major investment in the sector by the State Government. AGL very much wants to be a key part of the future of hydrogen in this state.
“This project also demonstrates the long-term investment AGL is making in the future of Torrens Island to transform the site to an integrated industrial energy hub.”
AGL has already decommissioned four fuel oil tanks, six tank bases and have completed the removal of two gantry cranes, as well as getting development underway on a new 250MW battery.
“This also follows the completion of Barker Inlet Power Station, which has the potential to utilise green hydrogen manufactured at the site,” Mr Brokhof said.
“Torrens Island is perfectly positioned as a future energy hub with strong grid connectivity, access to South Australia’s growing renewable energy portfolio and firming technology, nearby industry and potential large green hydrogen users, a highly skilled local workforce, and connections to Port Adelaide with avenues for export.”
Following the feasibility study, AGL expects this project to drive the development of new permanent highly skilled local jobs across energy production, advanced manufacturing, recycling, and the production of chemicals.
“Whether it’s the early potential for co-firing hydrogen with our existing gas engines at Barker Inlet Power Station, the creation of 100 per cent green gas networks for industry, or the development of low-carbon chemicals and future fuels right through to the production of green hydrogen for export, this feasibility study will explore it all,” Mr Brokhof said.
“In line with our vision for energy hubs, we’re working closely with industry so that the development of hydrogen facilities is at the appropriate scale and with the right timeframes and product types to support both local and export industries in their own decarbonisation journeys.”
With its existing energy infrastructure and proximity to ports and industrial areas, AGL’s Torrens Hub is uniquely positioned to take advantage of Australia’s emerging hydrogen industry.
AGL is also working with all local stakeholders, including with Traditional Owners, on its Torrens Hub.
The Torrens Hub also has the potential for broader energy security benefits and to provide grid stability for South Australia, while at the same time supporting Australia’s broader efforts towards decarbonisation.
Over the past 20 years, AGL has invested $4.8 billion in renewable and firming generation and has added more than 2,350MW of new generation capacity to the grid since 2003.
As Australia’s largest energy generator, owner of the largest portfolio of renewable generation and storage assets of any ASX listed company, and a leading retailer of energy solutions, AGL Energy and its people have a critical role to play in Australia’s transition and decarbonisation.