Major works commence on innovative Hydrogen Park Gladstone facility

The ground has been broken to signal the start of construction on a new facility that will deliver renewable hydrogen into Gladstone’s natural gas network, making it the first city in Australia with a gas network that supplies customers with a hydrogen gas blend. 

Australian Gas Infrastructure Group’s (AGIG) Hydrogen Park Gladstone (HyP Gladstone) is supported by about $2.72 million from the Queensland Government’s Hydrogen Industry Development Fund, further fostering the State’s hydrogen economy. 

“The importance of renewable gas, including hydrogen, is becoming clearer by the day. Customers, including our large industrial cusomters, are keen to access renewable gas options such as hydrogen to help meet Safeguard targets and to deliver Queensland’s low carbon objectives more broadly. 

“HyP Gladstone builds on AGIG’s experience in renewable hydrogen project development in Australia. As Australia’s first city-wide, HyP Gladstone take a leap forward in showcasing the low-carbon future of gas supply in Australia. 

“Importantly, renewable gases such as hydrogen can be delivered safely, reliably and at very little incremental cost through our world-class gas distribution network,” Australian Gas Infrastructure Group CEO Craig de Laine said. 

Mr de Laine added that the company is focussed on delivering its vision of providing renewable gas to its customers across the nation, including in Queensland, through provision of at least 10 per cent renewable gas by 2030 and 100 per cent by no later than 2050. 

“We appreciate the Queensland Government’s ongoing support of HyP Gladstone, and the broader actions they are taking to develop a hydrogen industry in the state. Queensland is very well placed to benefit from this new low-carbon industry and the jobs it will create, including in regions such as Gladstone. 

“Initiatives like the Queensland Government’s Hydrogen Industry Development Fund, the Queensland Energy and Jobs Plan and the landmark Hydrogen Industry Development Amendment Bill recently introduced to parliament are important parts of enabling greater investment in hydrogen and renewable gas infrastructure,” Mr de Laine said. 

Hydrogen Park Gladstone map (source: Australian Gas Infrastructure Group)

AGIG’s key focus is to build capacity and capability in the communities it serves and with this commitment, the company will partner with local businesses to deliver the Hyp Gladstone project. 

Walz, a Gladstone-based builder, has been appointed as the project’s principal contractor. 

AGIG is also working closely with CQUniversity to support hydrogen-related skills, training, and STEM education in Queensland schools as well as among the wider workforce. The company is hoping to facilitate the seamless transfer of knowledge from research to industry through this partnership which, in turn, will ensure that the region can capitalise on the new opportunities in hydrogen – including better employment opportunities for specialised skills. 

“Today marks another important step forward to our state’s future as a renewable energy powerhouse. 

“Our regions are uniquely set up to support the shift to new, high-value industries like renewable hydrogen that will set Queensland up for prosperity for decades to come. 

“With its port facilities, access to infrastructure and skilled workforce, Gladstone is positioned perfectly to tap into the renewable revolution. 

“This project is a great example of how we are powering towards a cleaner and greener future and placing Queensland at the forefront of hydrogen production,” Deputy Premier Steven Miles said. 

Through HyP Gladstone, AGIG will deliver about 10 per cent hydrogen gas to its customers and eventually convert its entire Gladstone network to renewable gas. 

HyP Gladstone is going to be a small demonstration facility designed to produce renewable hydrogen to support the decarbonisation of Gladstone’s gas supply. The new facility will produce renewable hydrogen by using a 175 kilowatt electrolyser with water and renewable electricity sourced from the grid and a matched with Large-scale Generation Certificated (LGC’s) that will be procured and surrendered as required to ensure the electricity used in operations is renewable. 

HyP Gladstone is due to be operational by early 2024, supplying about 800 homes and businesses in Gladstone and Barney Point with a blend of up to 10 per cent renewable, carbon-free hydrogen with no changes to appliances, connections or customer bills. 

“The AGIG project is an important steppingstone for Central Queensland. 

“The first project of its kind in Australia, it will create training opportunities, new skills and jobs, while contributing to decarbonisation targets in our Energy and Jobs Plan. 

“Importantly, it will also deliver clean, affordable and reliable energy to Queensland households and businesses. 

“Working with industry and our communities will be vital to ensure we seize all the opportunities arising from the transition to a net zero economy. 

“We’re building industries of the future – and a stronger future for regional Queensland,” Minister for Regional Development and Manufacturing and Member for Gladstone Glenn Butcher said. 

Source: Queensland Government – Media Statements; Australian Gas Infrastructure Group (1, 2); Utility Magazine