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The South Australian Government has welcomed a breakthrough for green hydrogen produced from renewable energy with Australia’s largest electrolyser at Tonsley becoming a major supplier to the state’s heavy industry.

Minister for Energy and Mining Dan van Holst Pellekaan welcomed AGIG’s Hydrogen Park South Australia project at Tonsley signing a contract to supply BOC Limited with renewable hydrogen made in South Australia.

“This electrolyser was supported by a $4.9 million grant from the State Government’s Renewable Technology Fund and I congratulate AGIG on the agreement with BOC to supply clean hydrogen to South Australian businesses – with the regional industrial city of Whyalla to be the first beneficiary,” he said.

“In addition to blending hydrogen into the gas network at Mitchell Park, the project will now expand by installing tube trailer refilling infrastructure at the site to allow hydrogen to be transported safely by road to any destination.

“This announcement shows how quickly we can grow a hydrogen industry in South Australia, and make our renewable energy work for consumers. Green hydrogen means that we can cut emissions from heavy industry, and grow our industry whilst we achieve our ambitious climate goals.

The Marshall Liberal Government has committed to a nation leading target of net-100% renewable energy generation and to reduce emissions by 50% (on 2005 levels) - both by 2030.

“This agreement between AGIG and BOC marks an important milestone in green hydrogen, by allowing the gas to be compressed and transported to industrial customers”.

The hydrogen produced at Tonsley will replace the hydrogen produced from fossil fuels in Victoria which is transported to BOC by road - saving around 117,000km in truck transport needs and 122 tonnes of carbon dioxide per year.

“This is an Australian-first way to transport green hydrogen to industry and will see the local production of green hydrogen replace ‘brown’ hydrogen currently imported from the east coast.

“BOC Whyalla will use this green hydrogen as an energy source to make high purity argon, used in industrial processes and welding gases across Whyalla’s steelworks.

AGIG’s Chief Executive Officer, Mr Ben Wilson, said the expansion of the facility to supply industry is a key part of AGIG’s plan for the facility delivered in partnership with the South Australian Government.

“HyP SA will be an Australian first to deliver renewable hydrogen made from water, sunshine and wind to industry.

“This partnership with BOC will allow the transport of hydrogen produced Tonsley to other markets, including potentially to a network of hydrogen refuelling stations for vehicles”.

Mr Wilson added the HyP SA facility reflected widening community recognition of hydrogen’s benefits, and underlined South Australia’s status as a leader in this emerging industry.

“With sufficient scale enabled by hydrogen’s domestic production and use in gas networks, hydrogen’s export may also be unlocked as a future industry for the state.

Managing Director, BOC South Pacific, John Evans is proud to be partnering with AGIG on this project.

“Not only will we use the renewable hydrogen within our own production facilities in Whyalla but the volumes will enable us to supply our customers in South Australia.

“This local source of renewable hydrogen will reduce our transport emissions as well as allow us to support our customers to decarbonise their businesses.

“BOC looks forward to working with AGIG and to demonstrating our leadership in hydrogen in the South Pacific in mobility, energy and industrial applications,” concluded Mr Evans.

Friday 23 October 2020