The asset beneath our feet
Photo at the South Australian Hydrogen Park, Adelaide. Kristin Raman at centre.
The announcement last week by the Australian Government week that it has ear-marked $2 billion for a new gas project, Hydrogen Headstart, is a signal that using existing infrastructure for new energy is a no brainer.
Hydrogen Headstart funding will bridge the commercial gap between the cost of hydrogen production from renewables and its current market price for early projects, and there is potential for the gas produced to be able to use existing gas infrastructure.
A GasNZ-led delegation visited the South Australia Hydrogen Park as part of the Australian Renewable Gas Tour in April, where Kristin Raman, Head of Strategy and Sustainability, Australian Gas Infrastructure Group (AGIG) made clear the compelling role that existing infrastructure has to play in decarbonisation.
“ If you’re decarbonising energy why wouldn’t you use the billion dollar gas infrastructure you already have to help.
“We have a billion dollar asset under our feet!” Ms Raman said
The Headstart funding announcement is a signal that the government in Australia has recognised this approach makes sense..
A GasNZ-led delegation visited the South Australia Hydrogen Park as part of the Australian Renewable Gas Tour in April, where Kristin Raman, Head of Strategy and Sustainability, Australian Gas Infrastructure Group (AGIG) made clear the compelling role that existing infrastructure has to play in decarbonisation.
“ If you’re decarbonising energy why wouldn’t you use the billion dollar gas infrastructure you already have to help.
“We have a billion dollar asset under our feet!” Ms Raman said
The Headstart funding announcement indicates that the government in Australia has recognised this approach makes sense.
A key insight from the Renewable Gas Tour demonstrated just how important bridging that gap is.
“We need to see funding renewable gas as enabling a renewable future rather than subsidising it,” GasNZ Chief Executive Janet Carson said.
The Australian Renewable Energy Agency (ARENA) was a key funder of most of the projects on the tour, and will play a key role in the Head Start programme’s effectiveness.
“Hydrogen Headstart will catalyse Australia’s hydrogen industry and other clean energy industries, and help position Australia as a global hydrogen leader,” ARENA CEO Darren Miller said.
A further $2 million over 2 years will be provided to help First Nations communities engage with hydrogen project developers.
In bringing the hydrogen gas sector together, there are high hopes in Australia that the fund will unlock further investment and improve the competitiveness of renewable hydrogen in Australia.
“We will be watching closely from New Zealand and leveraging what we can to help realise our own aspirations – with use of our existing infrastructure as a core component of the move to renewable energy,” Janet Carson said.