Australia's NSW approves first hydrogen gas facility

Melbourne — The New South Wales government approved the eastern Australian state's first hydrogen gas facility on Aug. 12 that could potentially supply gas to greater Sydney by 2025.

Located in Horsley Park in western Sydney's Fairfield suburb, the facility is costing A$18 million ($12.83 million) and will be operated as a trial project over the next five years. If successful, the facility would then provide green gas to homes, vehicles and businesses across Sydney, the government said.

The NSW government wants hydrogen to contribute 10% of the state's gas network by 2030.

Construction of the project is due to start within three months, with the aim of converting tap water and grid electricity from renewable sources into hydrogen gas. Horsley Park already contains a network of gas pipes.

The project will be run by site owner Jemena, whose major shareholders are the State Grid Corporation of China and Singapore Power. The company owns and manages gas and electricity assets in Australia.

In a separate announcement on Aug. 10, Jemena said it had signed a memorandum of understanding with Hyundai Australia and Coregas to produce and deliver hydrogen gas to Hyundai's Macquarie Park headquarters in Sydney from early 2021.

Jemena said fuel cell electric vehicles produced by Hyundai that are powered by hydrogen and oxygen and can travel up to 650 km (404 miles), much further than standard electric vehicles. Coregas will provide the pipework and associated technology for filling and discharging hydrogen.