Australia is working towards a reduction in carbon dioxide (CO₂), by 43% below 2005 levels by 2030 and South Australia is working towards becoming net zero emissions by 2050.

AGN is reducing its carbon emissions, leading the transition of natural gas networks to renewable gas, starting with an up to 5% (by volume) renewable hydrogen blend to Mitchell Park in South Australia. In early 2023, this area was extended to include an additional 3,000 customers in Mitchell Park, Clovelly Park and parts of Marion – including households, businesses, and schools. The renewable hydrogen blend was then increased from up to 5% to up to 10% (by volume) in March 2024.

Benefits of hydrogen and blended gas

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. As we move towards net zero emissions, maintaining diverse sources of energy can help with energy security, reliability and affordability.

Unlike natural gas or petrol, when hydrogen is burned there are no CO₂ emissions. Just like natural gas, hydrogen can be used for:

• cooking
• hot water
• heating buildings
• powering vehicles
• generating electricity

Modelling indicates that decarbonising natural gas through renewable hydrogen can be as cost competitive as 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.

Hydrogen also has other benefits such as:

• being used as a transport fuel
• providing a way to store renewable electricity
• being able to generate renewable electricity through fuel cells and turbines
• being a desirable product overseas, enabling a new export industry

What difference will hydrogen blending make?

An up to 10% (by volume) renewable hydrogen blend is the first step to lowering carbon emissions but we are pursuing more projects, aiming to blend up to 10% renewable hydrogen in South Australia and across the other regions we serve by 2030 and before 100% conversion by 2050.

AGN recently led the Australian Hydrogen Centre (AHC) Australian-first feasibility studies of how existing natural gas distribution networks could be used in a system to produce, store, and transport renewable hydrogen, decarbonising gas supply while still meeting the needs of millions of customers.

This Summary Report presents the key findings from a series of technical reports.

1. 10% Hydrogen Distribution Networks in selected Regional Towns in Victoria and South Australia.

2. 10% Hydrogen Distribution Networks – Victorian and South Australian Feasibility Studies.

3. 100% Hydrogen Distribution Networks – Victorian and South Australian Feasibility Studies.

The $4.15 million AHC project, supported by the Australian Renewable Energy Agency (ARENA), the Victorian Government and the South Australian Government, has brought together expertise and knowledge from across the energy supply chain including renewable electricity producers, electricity and gas infrastructure owners, and retailers to produce comprehensive research.

This follows the Australian National Hydrogen Strategy’s (the Strategy) identification of hydrogen in gas networks as one of three large-scale activation markets to build demand. The Strategy outlined that taking early steps to use hydrogen in transport, industrial use and gas networks will complement and enhance the impact of hydrogen hubs on making hydrogen infrastructure more cost-effective, promoting efficiencies, fostering innovation, and encouraging sector coupling synergies.

These studies have found that achieving 10% hydrogen blending helps lay the foundations for Australia’s emerging hydrogen industry through development of skills, public acceptance and large-scale projects while lowering emissions and retaining energy affordability and reliability.

Key features of the transition include:

• 670 MW of electrolyser capacity supported by existing renewable electricity generation;
• 30 tonnes of short-term hydrogen storage; and
• More than 700 jobs during construction, and more than 150 jobs ongoing.

For more information on these feasibility studies, please visit ARENA’s Knowledge Bank

Customers in Mitchell Park, south of Alawoona Ave: in the area bounded by Alawoona Avenue, the railway line, Sturt Creek and Sturt Road, have been receiving blended gas since May 2021.

In early 2023 AGN extended the project area to include a further 3,000 additional customers in Mitchell Park, Clovelly Park and parts of Marion – including households, businesses, and schools.

You can see which houses are included in the map below. If you are unsure, please contact us.

Customers won't notice any change to the gas, or the price they pay to their energy retailer. It's also as safe as the current natural gas supply.

View Detailed Map

Gas volume on your meter

Hydrogen has a lower heating value than natural gas, this means hydrogen carries slightly less energy for the same volume. As a result, people in this demonstration will need a slightly higher volume of blended gas to provide the same amount of energy compared to using natural gas.

At AGN, we make a billing adjustment to ensure customers do not have to pay more than if they were using natural gas.
If you have questions about your billing that haven't been answered here, contact us.

No impact on network or appliances

Our gas network is made of polyethylene and are suitable for transporting a hydrogen blended gas.

Your appliances will continue to work safely and reliably on this of renewable gas.

The characteristics of the blended gas supplied as part of this project are consistent with those set out for natural gas within the Australian Standard.

Any appliances sold in Australia are subject to testing to ensure they work safely and reliably with natural gas. They are tested with varying gas compositions to account for the varying sources of natural gas supplied around Australia. One of these “limit” gas compositions already 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.

There has been extensive research and several projects in Australia and overseas in relation to the blending of hydrogen with natural gas and its use in appliances.

• Jemena’s Western Sydney Green Gas Project began blending 2% hydrogen into the NSW gas network in November 2021
• The UK government supported the HyDeploy Project. Phase 1 ran from October 2019 for 18 months with 100 homes and 30 university buildings receiving 20% by volume blended gas. Phase 2 saw 668 houses, a school, several small businesses, and a church receiving a 20% hydrogen blend from August 2021 to June 2022. Phase 3 is underway with a focus on enabling Government Policy to deploy hydrogen blending across distribution networks.
• Projects in the Netherlands, UK and France are using hydrogen at up to 20% volume for hundreds of customers
• a project in Germany has successfully blended up to 10% hydrogen volume

"Hydrogen can be safely added to natural gas supplies at 10% by volume without changes to pipelines, appliances or regulations. Over time, and with modifications to the existing gas networks and appliances, hydrogen can completely replace natural gas for domestic cooking, heating and hot water." A report for the Council of Australian Governments (COAG)

Regulations and approvals

We are experts in developing and operating gas infrastructure safely and reliably. This is our commitment to the more than one million Australians we serve. Our commitment to safety underpins everything we do, and we are satisfied that an up to 10% (by volume) renewable hydrogen blend with natural gas is as safe as 100% natural gas. This is based on:

• our experience and the approvals process we have gone through to date
• that the characteristics of the blended renewable gas will continue to be consistent with those set out for natural gas within the Australian Standard
• the extensive literature and research undertaken
• recent testing of Australian appliances
• the results of international projects which are already blending up to 20% hydrogen

At AGN we’re subject to regulation by government bodies, which are designed to ensure our commitment to safety, reliability and service continue.

Using hydrogen and natural gas safely

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.

Blending 10% renewable hydrogen won’t change the approach to safety that is currently in place. The blended 10% renewable gas will still retain the distinctive natural gas smell that allows you to detect any leak.

You should continue to follow the same safety principles you do with your natural gas supply, ensuring you appliances are installed correctly and maintained. Importantly, if you ever smell gas or think there is a leak, you should report it.

Did You Know? ... We are going back to the future!

From 1861 until 1969, South Australia relied upon Town Gas to meet demand. Towns Gas was gas manufactured from coal and consisted of 50-60% hydrogen. Some places such as Hong Kong and Singapore still rely on Town Gas.

We switched from Town Gas upon the discovery of natural gas, because at the time natural gas was considered more reliable and economic. Today, the costs of producing hydrogen are coming down, and we know that blended gas is the first step on our journey to lowering carbon emissions.

If you ever smell gas in the street or on your property before or including your gas meter you should call our Leaks and Emergency Services on 1800 GAS LEAK (1800 427 532) to locate and repair the leak.

If you think the leak is after the meter on a section of pipe work connecting your appliances, or on the appliance itself, you should contact a licensed gas fitter to fix the problem. Remember, any person undertaking work involving gas must be appropriately licensed.

Learn more about safety and gas appliances.

If you have questions about safety that haven't been answered here, please read our Fact Sheet FAQs or contact us.