Investor Presentaiton
Integrate
hydrogen into our
energy system
Action theme 5
Understanding the value of hydrogen in
our decarbonised energy system
South Australia's energy market is at the
forefront of transitioning from fossil fuels
to renewable energy.
The Australian Energy Market Operator (AEMO) forecast that in
2018-19 renewable energy production will comprise about 59.7 per
cent of South Australia's total power generation. South Australia's
aspiration is to be a net 100 per cent renewable energy producer in
the 2030s.
Hydrogen offers an opportunity to ensure that the transition
to cleaner energy is affordable and reliable for South Australian
consumers. Once produced using renewable energy, hydrogen can
be blended into gas networks, used in transport, or reconverted
back to grid electricity when needed.
Electrolysers that produce hydrogen are also large highly flexible
loads that can be ramped up and down to balance electricity
supplied from renewable energy sources and provide ancillary grid
services that can contribute to power system security.
Renewable hydrogen can be used to diversify and reduce reliance
on traditional liquid fuels such as petrol and diesel, enabling its
emissions-free use in a range of South Australian primary energy
sectors such as gas, electricity and transportation sectors.
South Australia leads National Hydrogen Strategy Kick-start Project on hydrogen in gas
networks
At the December 2018 Council of
Australian Governments (COAG) Energy
Council meeting, the South Australian
Government along with all Australian
jurisdictions accepted a proposal from
Australia's Chief Scientist Dr Alan Finkel to
develop a National Hydrogen Strategy for
2020-2030.
COAG Energy Council has established a
Working Group to carry out the Strategy's
development across six work streams that
consider: hydrogen exports; hydrogen for
transport; hydrogen in the gas network;
hydrogen for industrial users; hydrogen to
support electricity systems; and cross-
cutting issues.
South Australia, in conjunction with the
Future Fuels CRC, is leading a project on
hydrogen in gas networks to identify
technical and regulatory changes
required to enable blending up to 10 per
cent hydrogen into the domestic gas
distribution network.
This work included a review of technical
standards, safety and technical
regulations, the national gas market
regulatory framework and examines
matters relating to gas quality, suitability
of pipeline materials, blending location
and impacts on network capacity and
metering.
South Australia is on the move to
integrate hydrogen into energy systems
Secure wider energy system benefits of
hydrogen-led sector coupling
By coupling other sectors to our
decarbonised electricity grid, we can
improve security, reliability and affordability
whilst reducing emissions.
Domestic hydrogen use could accelerate the
development of large-scale energy storage
in South Australia. The coupling of gas,
electricity and transport sectors is expected
to create wider benefits for the community
and industry, with increased efficiencies and
more flexibility.
For example, a mine site could reduce
carbon emissions and increase its fuel
security by producing renewable hydrogen
on-site for use in mining vehicles as well
as back-up power supply. Other South
Australian industries that could benefit from
improved fuel security and decarbonisation
include defence, agriculture, heavy
industries, space, as well as remote
communities.
The South Australian Government will
continue to lead and participate in projects,
such as the Hydrogen in the Gas Networks
kick-start project and the Future Fuels CRC,
that investigate the more efficient delivery of
energy to customers through the optimised
use of energy networks and markets.
Facilitate knowledge sharing from the
first hydrogen projects integrated into
South Australia's energy system
South Australian Government has co-
invested in pilots and demonstrations that
will support familiarisation with hydrogen
production systems and their interactions
with energy systems.
These learnings will help industry,
market bodies and governments better
understand the services and value hydrogen
technologies provide to energy systems,
and inform future investment decisions. As
they become available, the South Australian
Government will facilitate the sharing of key
learnings with relevant stakeholders.
Identify any changes that might be
needed to the National Energy Market
Framework to ensure the efficient
integration of hydrogen into energy
systems
As lead legislator for national energy law
reforms and a member of COAG, the South
Australian Government will work with other
jurisdictions to identify any changes that
might be needed to the national energy
market framework to ensure the efficient
integration of hydrogen into energy systems
for the long-term interest of all consumers.
Investigate hydrogen production and
use in remote areas of South Australia
With significant remote regions not
connected to the National Electricity
Market, the South Australian Government is
responsible for overseeing the safe, reliable
and cost effective supply of electricity to
around 3,400 customers in 28 remote towns
across the state.
Already being evaluated for the cost-
effectiveness of implementing high
penetration renewable energy solutions
-for example, the Coober Pedy Hybrid
Renewable Project - the South Australian
Government will investigate the potential
application of hydrogen electrolysis and
fuel cell applications at sites to decarbonise
existing diesel and LPG generators.
With world class mineral deposits being
discovered in more remote parts of South
Australia, the government will work with
the minerals sector to investigate the
opportunities for hydrogen in remote
mining.
29
South Australia's Hydrogen Action Plan
Government of South Australia
September 2019
EDL Coober Pedy Renewable Hybrid Project
30View entire presentation