Renewable gas is a term used to describe gases that do not produce any additional carbon emissions in their production and use. Common forms of renewable gas include green hydrogen and biomethane. These can be used in the same way as natural gas is today.

Hydrogen does not contain any carbon and can be produced using water and renewable electricity, meaning the entire process is carbon free.

Biomethane is carbon neutral - it harnesses the energy potential from organic materials such as landfill gas, agricultural waste and sewage, supporting the circular economy.

By blending and ultimately replacing natural gas with renewable gas we can use our existing infrastructure to supply renewable gas to our customers. It also means customers retain their choice of energy supply, and those industries relying on gas can continue to access it.

Blended gas is the term used to describe gas supply that is part renewable gas and part natural gas. Blending renewable gas with the natural gas already being supplied to customers means we can start to decarbonise energy supply using our existing infrastructure and with minimal impact to customers. It also means customers retain their choice of energy supply, and those industries relying on gas can continue to access it.

Today Australia’s energy system relies on diverse sources of energy – natural gas and liquid fuels (petrol and diesel) are used for more than double the energy provided by electricity. It’s important that as we move towards net zero emissions we continue to use diverse sources of energy - if we don’t maintain diversity we risk developing a more costly and less reliable energy system overall.

Importantly, modelling indicates that decarbonising natural gas through renewable hydrogen can be up to 50% cheaper than electrification as it avoids significant investment in additional electricity infrastructure such as poles, wires and additional batteries.

It also means customers retain their choice of energy supply, and those industries relying on gas can continue to access it.

Australian Gas Networks (AGN) is one of Australia’s largest gas distribution companies with more than 25,000 kilometres of distribution networks and 1,000 kilometres of transmission pipelines.

Our networks serve more than 1.3 million homes and businesses in South Australia, Victoria, Queensland, New South Wales and the Northern Territory.

AGN receives a portion of the amount energy retailers charge their consumers for natural gas, which covers the costs of transporting natural gas from the high-pressure transmission pipelines to your street and home.

AGN is one of three companies that came together in 2017 to form Australian Gas Infrastructure Group (AGIG). AGIG is one of the largest energy infrastructure businesses in Australia, owning and operating infrastructure that delivers gas to more than two million Australian homes and businesses. AGIG also delivers gas that supports the Australian economy – for power generators, mines and manufactures.

AGN has a long history serving Australians. Our origins date back over 150 years to the gas distribution networks of the former South Australian and Brisbane Gas Companies, and the Gas and Fuel Corporation of Victoria.

We’re experts in building and operating gas pipelines to deliver gas safely and reliably to our customers. We call on this experience in the development of renewable gas projects.

On our distribution networks, we are targeting 10% renewable gas by volume by 2030. Our aim is to fully decarbonise our distribution networks by 2040 as a stretch target and by no later than 2050.

This is consistent with Australian state and territory ambitions which collectively target being net zero carbon by 2050, and with the ambitions of several states who are explicitly targeting 10% renewable gas in networks by 2030.

Image: Australian Gas Networks’ Low Carbon Strategy

Renewable gas is now here. Hydrogen Park South Australia commenced in May 2021 and is delivering volumes of up to 10% renewable hydrogen to about 4000 homes in the suburb of Mitchell Park. Hydrogen Park Gladstone is currently being developed and will deliver up to a 10% renewable hydrogen blend to the Gladstone gas distribution network in Queensland in 2023.

The proposed Hydrogen Park Murray Valley facility is planned to deliver an up to 10% renewable hydrogen blend to homes, businesses and industry in Albury Wodonga in early 2024.

This is just the start. Ultimately, in line with our Low Carbon Strategy we are targeting volumes of up to 10% renewable gas across our networks by 2030 and 100% renewable gas by 2040 as a stretch target.

Hydrogen is the simplest and most abundant molecule in the universe. It is colourless, odourless, non-toxic and an excellent carrier of energy.

Like natural gas, hydrogen can be used to heat buildings, power vehicles and produce electricity. Unlike natural gas, when burned, hydrogen produces only heat and water vapour - no carbon emissions.

In nature, hydrogen is found attached to other elements, which means we need to separate it before use. If we do this in a renewable way using wind and solar power the hydrogen is renewable hydrogen. Unlike natural gas, when burned, renewable hydrogen produces only heat and water vapour - no carbon emissions.

A common way of producing renewable hydrogen, and the way we are producing it, is through electrolysis with renewable electricity and water.

Electrolysis is the process of splitting water into hydrogen and oxygen using electricity. Electrolysis has been around for a long time, first appearing in the 1800s and is in use around the world today. By using renewable electricity, the entire process is carbon free – the hydrogen from this process is often referred to as ‘renewable’ or ‘green’ hydrogen.

Hydrogen can also be produced from natural gas or coal through steam methane reformation or autothermal reformation. This process releases CO2 and hydrogen produced this way is called ‘brown’ hydrogen. If the CO2 is captured and stored, then it becomes low carbon and is called ‘blue’ hydrogen.

We will use renewable electricity derived from the sun and wind in our projects to ensure that the entire process is carbon-free.

Renewable electricity may be supplied directly to the project (behind-the-meter) or can be sourced from the grid by purchasing and surrendering Renewable Energy Certificates.

Decarbonisation of energy is a big challenge, and we need lots of solutions. Renewable electricity is a very important part of the answer, but it can’t decarbonise all parts of the economy.

Using electricity to produce hydrogen is a complementary source of energy. It brings together gas and electricity networks, enabling renewable electricity to be used more efficiently – for example using excess renewable electricity (wind power that would have otherwise been curtailed at night or excess rooftop solar in the middle of the day) to produce hydrogen gas which is easily stored and can also be used to decarbonise the economy.

Water is a precious resource, and we are conscious to use it respectfully. Producing 1kg of hydrogen through electrolysis requires 9-to-15L of water. For context, converting all gas supplied via the South Australian gas network to hydrogen using electrolysis would result in an increase in the state’s water consumption of around 2%.

The industry is always looking for ways to make water consumption more sustainable, for example we are targeting increased efficiency and considering ways to use desalinated water and waste water.

Hydrogen has long been used in Australia as a fuel for industry (such as steel making and fertilisers) and for oil refining. It can also be used in the manufacture of many common household goods, like margarine!

In recent years, using hydrogen as a direct energy source and as a transport fuel has gained momentum around the word, as we look to transition away from fossil fuels to carbon-free alternatives.

In late-2019, all Australian Governments agreed to sets a path to build Australia's hydrogen industry through the National Hydrogen Strategy. Under the leadership of Australia’s Chief Scientist, Dr Alan Finkel, the Strategy recognises hydrogen’s ability to decarbonise gas, power and transport and to underpin a new growth sector, with jobs and wider economic benefits.

It is timely for us to pursue hydrogen now, as the need to decarbonise grows and as the costs of technology (such as electrolysers) are reducing. There are multiple hydrogen projects online or under development across Australia, you can view a list of all Australian hydrogen projects at the ‘Australian Hydrogen Projects and Research Centres’ portal here.

Hydrogen as a clean energy source is already being used in Japan, South Korea, China, Europe, and the United States, both as 100% hydrogen and blended with natural gas. A few of these initiatives are outlined below:

• A project in Amerland in the Netherlands blends up to 20% hydrogen into their natural gas network for use by domestic consumers.
• In the Klanxbüll/Neukirchen region of Germany, gas customers were supplied with a natural gas blend containing up to 10% volume hydrogen.
• The GRHYD project in France involves blending up to 20% hydrogen into natural gas network to deliver to domestic customers and a hospital.
• In the UK, the HyDeploy project blends 20% hydrogen to two project areas. The UK are also undertaking studies on the full conversion of gas networks to 100% hydrogen.
• The Tokyo Olympics were the ‘Green Olympics’ and will rely on hydrogen to power vehicles and to the Olympic Torch.
• Several countries such as Japan and South Korea have hydrogen strategies outlining hydrogen use in sectors such as transport, power generation and businesses and homes
• South Korea plans to establish three hydrogen cities by 2022 that will use hydrogen for the city’s cooling, heating, transport and electricity supply, and wants 10% of cities by 2030 and 30% by 2040 to follow this model.

You do not need to do anything. We are working with industry and governments across Australia to deliver a renewable gas future and meet our goal of being carbon-neutral by 2050 – or 2040 as a stretch target.

Hydrogen Park South Australia commenced in May 2021 and is delivering volumes of up to 10% renewable hydrogen to about 4000 homes in the suburb of Mitchell Park, while Hydrogen Park Gladstone is currently being developed and will deliver up to a 10% renewable hydrogen blend to the Gladstone gas distribution network in Queensland in 2023.

We will then move to large scale blending as we target 10% renewable gas across our networks by 2030. This includes Hydrogen Park Murray Valley, which was awarded funding by the Australian Renewable Energy Agency in May 2021 and will deliver up to a 10% renewable hydrogen blend to more than 40,000 connections in Albury and Wodonga from early 2024.

We are targeting conversion of our existing networks from 10% to 100% renewable gas from 2030. At this point a change to hydrogen appliances may be required, we are working with appliance manufacturers to make sure this occurs as smoothly as possible.

We are committed to engaging with the community. When renewable gas projects are developed in your area, we will let you know.

You can be confident that your connection to the gas network will provide you with the energy you require and also help you transition to a low carbon future

Our current plans are to blend volumes of up to 10% renewable hydrogen by 2030. This blended gas remains consistent with the Australian Specifications for natural gas. Beyond 2030 we will look to convert to 100% renewable gas, which may require some change to appliances - work is already underway with the appliance sector to make this transition as smooth as possible.

We are committed to engaging with the community. When renewable gas projects are developed in your area we will let you know well in advance to ensure any questions you may have are answered.

We are experts in developing and operating gas infrastructure safely and reliably. Our commitment to safety underpins everything we do, and we must be satisfied that our renewable gas projects are safe before first production.

Hydrogen, like other fuels, is flammable and this is a key reason it can provide us with energy. It also means we need to treat hydrogen and blended gas with respect, as we do natural gas, electricity, petrol and other energy carriers.

The properties of hydrogen are well known and there is a significant body of evidence on its safe handing, including from industries that have produced, transported and used hydrogen for more than 100 years.

While hydrogen is odourless and burns with an invisible flame, odorants and colourants will be added for use in the home, such that flames can be seen and leaks can be detected by smell - just like natural gas. Our networks are also predominately polyethylene (plastic), which is suitable for 100% renewable gas.

As long-term owners of the gas networks, we are satisfied that we can adapt to the safety requirements for managing renewable gases. We are further subject to regulation by government bodies, which are designed to ensure our commitment to safety, reliability and service continue.

Yes. The areas to which we are supplying blended gas, as well as the majority of our networks across the country, are new generation polyethylene (plastic pipes) and are suitable for transporting hydrogen.

The introduction of hydrogen into our network does not cause our gas pipes to leak. On occasion gas pipes do leak for other reasons though, such as damage from tree roots or damage by someone hitting the main.

Should a leak occur in the project area, our response and safety procedures remain the same.

If you are looking for more information on the use of hydrogen gas in existing networks you might be interested in these reports:

• In 2023 as part of the Future Fuel CRC, research was conducted on the Influence of Hydrogen on Vintage Polyethylene Pipes: Slow Crack Growth Performance and Material Properties (hindawi.com).
• For further studies into network readiness and performance check out the Australian Hydrogen Centre reports on the ARENA Knowledge Bank https://arena.gov.au/knowledge-bank/?keywords=Australian+Hydrogen+Centre

Neither hydrogen nor natural gas smell in their normal state.

Natural gas supplied via the gas network contains a special odorant to give it its distinctive smell, so that leaks can be detected. Blending up to 10% hydrogen with natural gas will not bring the odorant outside of acceptable levels. If there is a leak, you will still detect the ‘natural gas’ smell.

If you smell natural gas, report the leak immediately by calling the 24-hour 1800 GAS LEAK (1800 427 532).

There are also other routine gas safety measures in place on the gas network, including regular leak detection surveys, which use specialist equipment. These surveys will continue in the project zone as is normal in the rest of the network.

The blended gas contains up to 10% renewable hydrogen which is not expected to change the colour of the flame.

Gas safety advice for customers remains the same during the project. The number you call during an emergency remains the same at 1800 GAS LEAK (1800 427 532).

Historically, Australians relied upon Towns Gas to meet demand. Towns Gas was manufactured from coal and consisted of 50-60% hydrogen. Some places such as Hong Kong and Singapore still rely on Towns Gas.

Australia switched from Towns Gas upon the discovery of natural gas, because natural gas was considered more reliable and economic. This occurred in the 1970s in South Australia, whilst some places, including parts of Queensland relied on Towns Gas until the late 1990s.

Today we know that cost of producing hydrogen is decreasing and that blending renewable hydrogen with natural gas is the first step towards lowering carbon emissions.

Of course. On average there are approximately 100,000 new gas connections across Australia every year. Connecting to the gas network today provides you the benefits of natural gas – safe, reliable, controllable energy – and a pathway to renewable gas in the near future. The connection process will be no different for natural gas or a blended gas.

The appliances sold in Australia are designed to operate efficiently and effectively with natural gas. They are tested with varying gas compositions to account for the varying sources of natural gas supplied around Australia. One such “limit” gas contains 13% hydrogen, and therefore all certified household gas appliances sold in Australia have undergone a range of safety tests with this level of hydrogen.

Consistent with this and with our own appliance testing program, we are confident that your existing home appliances will work safely, reliably and effectively with up to 10% hydrogen blends and potentially even higher - with international projects supplying up to 20% hydrogen blends.

When receiving 100% renewable hydrogen gas – which is being targeted for post-2030 - new appliances or burner parts may be required.

100% hydrogen appliances are in use throughout Australia and the world today – we have hydrogen barbeques that we use at community events – but at the moment they are niche product whilst the market establishes itself. Appliance manufacturers are already working on hydrogen ready appliances that will easily transition from natural gas to hydrogen gas. Hydrogen cars, trucks and forklifts are also available.

Our Low Carbon Strategy outlines our plans to supply 10% renewable gas by 2030 before starting the conversion to 100% renewable gas. The timing of 100% conversion (post-2030) is aligned with when many appliances will be able to be replaced as part of their natural retirement cycle which will also contribute to a smooth transition.

We understand that price is very important to our customers.

At the moment, producing renewable gas is a new industry in Australia and is more expensive than natural gas.

Just like solar, wind and battery power, we need to develop projects and increase scale in order to drive down costs. We are doing this with the support of the Australian Renewable Energy Agency (ARENA), who have committed project funding in order to minimise the cost impact on customers of receiving renewable gas.

We are now working with the Victorian Government and our regulators with the intent that any small cost increase associated with blending renewable gas will be more than offset by expected reductions in the cost of delivering gas to your home or business through our network from 2023 onwards.

Any arrangements impacting your bill will be subject to extensive consultation with stakeholders and require agreement with our regulators and the Victorian Government.

Our modelling indicates that renewable hydrogen and biomethane can be produced at prices equivalent to natural gas by 2030 if not before. This is consistent with the Federal Government targets of “H2 under $2 per kg”. At this time we will look to begin conversion of our networks to 100% renewable gas.

Hydrogen Park Murray Valley (HyP Murray Valley) is a significant renewable hydrogen production facility, to be delivered with joint funding from Australian Gas Infrastructure Group, the Australian Renewable Energy Agency, the Victorian State Government, and the Clean Energy Finance Corporation. 

The facility will be located on the corner of Old Barnawartha Road, alongside the West Wodonga Wastewater Treatment Plant, which is about 7km from the Wodonga central business district and 2.7km from the suburban fringe. 

Here we will use water and renewable electricity (sourced from the local electricity network, complimented by the purchase and surrender of Australian Government-managed Large-scale Generation Certificates (LGCs)) to produce hydrogen using a process called electrolysis. The electrolyser will have a 10-megawatt capacity (eight times greater than the current largest in Australia) and will produce zero-emissions, renewable hydrogen. 

The renewable hydrogen will then replace up to 10% (by volume) natural gas in the existing gas distribution network to more than 40,000 homes and small businesses, along with 20 industrial customers in Albury and Wodonga. There is also the opportunity to supply other markets such as refuelling vehicles along the Hume Highway.

HyP Murray Valley is expected to start producing hydrogen in early 2025. 

We are planning to produce renewable hydrogen using an electrolyser, which splits water into hydrogen and oxygen using renewable electricity. The process by which this occurs is known as electrolysis. Electrolysis has been around for a long time, first appearing in the 1800s and is still in use around the world today.

HyP Murray Valley will use a 10 megawatt electrolyser, which can produce about 180 kilograms of hydrogen per hour. The electrolyser responds quickly to fluctuations in the electricity market, ramping up when renewable electricity is abundant and switching off in times of high electricity demand.

HyP Murray Valley includes a purpose-built hydrogen storage vessel with a 950kg capacity to supply hydrogen to industry and transport markets.

We are working with North East Water to assess if the oxygen produced (as a by-product of electrolysis) can be used in their wastewater treatment process. 

If your property is connected to the gas network in Albury or Wodonga, you will receive the blended gas via the existing network from early 2025.

You can contact the project team to confirm if you will be receiving blended gas.

Hydrogen has many applications, and the size and strategic location of this project will support many of those uses. In the initial stage, hydrogen will be mixed into the current gas network creating a 10% renewable gas ‘blend’ which has less carbon emissions while allowing customers to use their gas appliances in the same way they do today.

The hydrogen could also be used for transport (mainly hydrogen compatible trucks travelling the “Hydrogen Highway”) and for industry seeking to decarbonise their natural gas use (including local food manufacturers).

Key components of the development include an electrolyser unit, hydrogen blending skid, hydrogen storage, new power connection from the existing electricity network and a 600m steel underground hydrogen transmission pipeline to deliver renewable hydrogen to the blending station.

HyP Murray Valley will create a hydrogen hub strategically located near transport and industry in Wodonga.

After considering more than 30 regional sites across South Australia and Victoria, the Australian Hydrogen Centre selected Wodonga as the most suitable location for this renewable gas blending project. The selection was informed by the characteristics of the gas network and the associated infrastructure to deliver a renewable hydrogen production hub designed to decarbonise local gas supply, industry and the transport sector.

HyP Murray Valley is one of Australia’s largest renewable hydrogen production facilities and a globally significant distribution network blending project.

The project was announced in May 2021 when it was awarded conditional funding from the Australian Renewable Energy Agency (ARENA). It is expected that construction will start in the later part of 2023, with first production expected in 2025.

If your property is connected to the gas network in Albury or Wodonga, you will automatically receive the blended gas via the existing network from early 2025. You do not need to do anything at all. You can contact the project team to confirm if you will be receiving blended gas.

Existing gas appliances are compatible with the renewable gas blend, as are the current gas pipelines that connect your home to the network.

If you live in Albury Wodonga, we will continue to provide you with regular updates as the project progresses, including when you will start to receive blended gas. Register here to get the latest updates.

There is no change to your current retail arrangement as a result of receiving blended gas.

Here we will use renewable electricity sourced from the grid. We will purchase and surrender Australian Government-managed GreenPower Large-scale Generation Certificates (LGCs). By purchasing LGCs, this means that we must secure enough renewable electricity to meet 100% of HyP Murray Valley’s requirements and this also certifies that our electricity is 100% renewable and our hydrogen is green.

LGCs are created by registered renewable power stations across Australia for every megawatt hour of power they generate.

Water will be sourced from North East Water to produce renewable hydrogen in a process called electrolysis. The volume of water to be used is the equivalent of less than 0.4% of Wodonga’s annual water consumption.

We are also investigating the potential to use recycled water, sourced from the West Wodonga Wastewater Treatment Plant.

The project will initially vent to atmosphere.

We are working with North East Water to investigate options to supply oxygen for use in their wastewater treatment process. They currently use aerators, which use electricity to pump air through the ponds. Receiving oxygen from HyP Murray Valley will reduce the amount they need to use aerators and therefore reduce the amount of electricity they consume.

This project reduces the amount of carbon in our gas network. As a business, we are committed to decarbonising domestic gas use in Australia. On our distribution networks, we are targeting 10% renewable gas by volume by 2030.

Renewable hydrogen is a significant growth industry. At its peak, the construction of this project will support up to 45-50 jobs in the local region. During operations, there is expected to be 1 full time employee on site.

Australia’s National Hydrogen Strategy notes that ‘a cautiously optimistic scenario could see an Australian hydrogen industry generate about 7,600 jobs and add about $11 billion a year in additional GDP by 2050. If global markets develop faster, it could mean another ten thousand jobs and at least $26 billion a year in GDP.’

The project has local content requirements to ensure that as much material and labour will come locally as possible.

HyP Gladstone will be a small demonstration facility designed to produce renewable hydrogen to start to decarbonise domestic gas supply in Gladstone. 

The HyP Gladstone facility will use water and renewable electricity that will be sourced from the grid and matched with Large-scale Generation Certificates (LGC’s) that will be procured and surrendered as required to ensure the electricity used is renewable to produce renewable hydrogen. The renewable hydrogen will then be blended with natural gas, creating up to a 10% gas blend.

The blended gas will be distributed to all homes and businesses connected to the existing AGN gas distribution network in Gladstone.

In April 2023, approval was granted for our Development Application by the Gladstone Ports Corporation to locate HyP Gladstone at the corner of Morgan and Rooksby Streets, Gladstone.

Investigations identified the site at the corner of Morgan and Rooksby Streets, accounting for technical, environmental, safety and social considerations.

Hydrogen is the simplest and most abundant molecule in the universe. It is colourless, odourless, non-toxic and an excellent carrier of energy.

Like natural gas, hydrogen can be used to heat buildings, power vehicles and produce electricity. Unlike natural gas, when burned, renewable hydrogen produces only heat and water vapour - no carbon emissions.

In nature, hydrogen is found attached to other elements, which means we need to separate it before use. If we do this in a renewable way the hydrogen can be used as a renewable form of energy.

We are planning to produce renewable hydrogen using an electrolyser, which splits water into hydrogen and oxygen using renewable electricity that will be sourced from the grid and matched with Large-scale Generation Certificates (LGC’s) that will be procured and surrendered as required to ensure the electricity used is renewable. The process by which this occurs is known as electrolysis.

HyP Gladstone will use a relatively small 175 kilowatt Proton Exchange Membrane electrolyser, which can produce up to 2.75 kilograms of hydrogen per hour. The electrolyser can rapidly respond to fluctuations in the electricity market ramping up when renewable electricity is abundant and switching off in times of high electricity demand.

Image: Schematic of Hydrogen Park Gladstone.

Gas customers living in Gladstone Central, Barney Point, South Gladstone and West Gladstone who are connected to the AGN gas distribution network will receive blended gas from HyP Gladstone.

If your property is connected to the AGN gas network Gladstone, you will automatically receive the blended gas via the existing network by the end of this year.

You do not need to do anything at all. You can contact the project team to confirm if you will be receiving blended gas.

If you live in the Gladstone blended gas project area, we will continue to provide you with regular updates as the project progresses, including when you will start to receive blended gas. Register here to get the latest updates.

There is no change to your current retail arrangement as a result of receiving blended gas.

HyP Gladstone will produce renewable hydrogen by electrolysis, using renewable electricity that will be sourced from the grid and matched with Large-scale Generation Certificates (LGC’s) that will be procured and surrendered as required to ensure the electricity used is renewable.

Water will be purchased from the local Gladstone network, in the same way you would have it delivered to your house.

The water volumes consumed to produce hydrogen are low, an average of 101L litres per hour over a 24hr period. Annual volumes used to produce the hydrogen will be very low, the equivalent to six “water wise” households according to Gladstone Regional Council guidelines.

This project reduces the amount of carbon in our gas network. As a business, we are committed to decarbonising domestic gas use in Australia. On our distribution networks, we are targeting 10% renewable gas by volume by 2030.

Safety is our number one priority. At AGN, we are experts in developing and operating gas infrastructure – the core elements of what we deliver are safe and reliable energy services. Hydrogen, like other fuels, is flammable and this is a key reason it can provide us with energy. It also means we need to treat hydrogen with respect, as we do natural gas, electricity, petrol and other energy carriers.

Hydrogen is already produced and used around Australia today, including at our existing Hydrogen Park South Australia facility located in the metropolitan Adelaide suburb of Tonsley (learn more here). 

We are subject to regulation by government bodies, which are designed to ensure our commitment to safety, reliability and service continue. We will have all necessary approvals in place before production begins.