Why the project
Blended 5% renewable gas is the first step on our journey to lowering carbon emissions, progressively removing carbon from our gas.
Australia is working towards a reduction in carbon dioxide (CO2) to between 26 to 28% below 2005 levels by 2030 and South Australia is working towards becoming net zero emissions by 2050.
Developing a renewable hydrogen industry will also enable further decarbonisation of other sectors as well as developing a new industry and facilitating economic growth.
Watch our video on the low carbon future
How much difference will hydrogen blending make to emissions?
If we were to blend 10% by volume across all of South Australia:
- we would save around 70,000 tonnes of carbon dioxide every year
- this is equivalent to taking about 24,000 passenger cars off the road (2% of passenger vehicles).
A 5% renewable hydrogen blend in Mitchell Park 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 before 100% conversion.
A blend of up to 10% would help to lower carbon emissions relatively quickly without changes to appliances, pipes and meters. This can happen while larger scale, 100% conversion projects are being progressed.
Benefits of hydrogen
Unlike natural gas or petrol, when hydrogen is burned there are no CO2 emissions.
Just like natural gas, hydrogen can be used for:
- hot water
- heating buildings
- powering vehicles
- generating electricity
Replacing natural gas with renewable hydrogen allows us to continue using gas in our homes and businesses whilst lowering carbon emissions. Studies such as Hydrogen for Australia's Future and 2050 Energy Scenarios in the UK indicate that replacing natural gas with 100% hydrogen is cheaper than replacing with renewable electricity.
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
Hydrogen use around Australia
Hydrogen as renewable energy is already being pursued across Australia:
- Australia’s Chief Scientist is leading development of a National Hydrogen Strategy – you can watch a video on the strategy here
- The Federal Government is part-funding a $90 million Research Centre looking at a low-carbon economy using fuels such as hydrogen
- The CSIRO has developed a National Hydrogen Roadmap
- Many other hydrogen projects are currently in the planning and development stages