A A$12.5mn ($8.47mn) pilot project producing green hydrogen in South Australia is due to start operations by August and export first hydrogen to Indonesia by the end of the year.

The project, based in Bolivar to the north of Adelaide, was launched by Marubeni at the beginning of last year and began construction in February. It is part-funded by Japan’s Ministry of Environment via its financing programme for Joint Crediting Mechanism projects. The scheme unlocks Japanese funding for projects that aim to reduce emissions in partner countries such as Indonesia.

The project will include a 150kW proton-exchange-membrane (PEM) electrolyser coupled with a 5MW battery energy storage system, using power from the grid. Hydrogen will be stored in metal hydride tanks and shipped to Indonesia, where it will supply fuel cells in an industrial park in Jakarta to generate power and heat for industrial processes.

150kW – Bolivar pilot project electrolyser capacity

The pilot project will be one of the first to come online in South Australia, which has seen a growing list of hydrogen project announcements. The largest and most recent is a 5GW green hydrogen and ammonia hub announced by renewables developer Amp Energy this week.

The state government has committed A$593mn towards a 250MW electrolyser project near Whyalla, to be built by the end of 2025, as part of its Hydrogen Jobs Plan. It is also progressing an export hub at Port Bonython, for which it announced key partners including Amp, Australian renewables developer Fortescue Future Industries, Australian oil and gas firms Origin Energy and Santos, green hydrogen infrastructure company H2U, Japanese oil sector firms Eneos and Chiyoda, and Japanese conglomerate Mitsubishi.

Commodities trader Trafigura and metals firm Nyrstar announced in 2021 a 440MW green hydrogen project at Port Pirie. H2U is developing an initial 100MW demonstrator phase of its Eyre Peninsula Gateway project, which will supply the domestic market and trial exports to Japan and other Asian countries.

The state government has also provided a A$4.9mn grant toward a A$11.4mn Australia Gas Networks (AGN) demonstrator project. Since 2021, the gas utility has produced hydrogen via a 1.25MW PEM electrolyser for 5pc blending into networks supplying Adelaide’s Mitchell Park suburb. The initial 700-home pilot is set to be expanded to include an additional 3,000 customers this year. AGN is also running trials for a 10pc blend into gas networks in Gladstone in Queensland as well as twin cities Albury and Wodonga.

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Author: Polly Martin