Tasmania’s gas network may soon include a blend of green hydrogen, as Tas Gas signs a non-binding agreement with Woodside Energy to explore the potential.
The heads of agreement provides the framework to blend up to ten per cent hydrogen into the network, including renewable hydrogen produced at Woodside’s proposed H2TAS project.
Tas Gas CEO, Phaedra Deckart, said her business is committed to helping reduce emissions through exploring the use of green gases, such as hydrogen.
“Tasmania has an opportunity to lead the country in green energy technology, this agreement is the latest step in that journey,” Ms Deckart said.
“In terms of gas, we have an in-built competitive advantage for decarbonisation here.
“Our networks are relatively new and capable of safely conveying hydrogen, unlike older systems across Australia. The possibilities are exciting.”
Woodside CEO, Peter Coleman, said this was a significant milestone, demonstrating the H2TAS project’s viability to become one of the first domestic hydrogen production facilities in Tasmania.
“The term sheet represents H2TAS’ foundation customer and will support a final investment decision on the project, targeted for the third quarter of 2021,” Mr Coleman said.
“Tas Gas are to be congratulated for their foresight in planning for hydrogen blending into their gas networks, as this will be a key enabler for the growth of the Australian hydrogen industry and support progress towards a decarbonised economy.”
Tas Gas Networks owns 837km of gas pipelines across Tasmania, supplying over 13,700 customers. The business is also the largest gas retailer in Tasmania.
“It’s these opportunities that confirm gas has a key role to play in the business of transition to a lower carbon, clean energy future,” Ms Deckart said.
“Our customers tell us this is something they want, we are listening and responding.”
The proposed H2TAS project is a renewable hydrogen project located in Tasmania’s Bell Bay Advanced Manufacturing Zone, a heavy industrial precinct north of Launceston.