Australia’s largest pipeline developer APA Group is investigating the opportunities around converting some of its gas transmission network to be able to carry pure or blended hydrogen gas, in an effort to accelerate the adoption of green and renewable forms of energy.
In May, APA brought the potential conversion of a gas transmission pipeline to a pure hydrogen service one step closer, after successfully completing laboratory testing of Parmelia gas pipeline materials in a pressurised hydrogen environment.
The lab work is testing the ability of a 43-kilometre section of the Parmelia pipeline in Western Australia to carry up to 100 per cent hydrogen.
Most of Australia’s pipelines are used for transporting coal seam gas to LNG processing plants in Queensland and offshore natural gas to LNG plants in Western Australia and Darwin, and thus a vast majority are high-pressure gas transmission pipelines.
Hydrogen is increasingly being seen as a viable and key component of building future renewable energy systems, as it can be used in a variety of end-use and energy applications and paves the way for lower – and eventually zero – carbon industrial processes.
This will be particularly relevant to decarbonising a range of hard-to-abate industries, including long-haul transport, chemicals, iron and steel.
Completion of the second phase of APA’s research, partly funded by the WA government’s Renewable Hydrogen Fund, has successfully shown the existing 43-kilometre section of steel transmission pipeline can technically transport pure or blended hydrogen through the pipeline without reducing the operating pressure.
APA Chief Executive and Managing Director Adam Watson said it represented an exciting milestone in Australia’s energy transition, as the country moved closer to hydrogen becoming a core part of the future energy mix, particularly for industrial customers.
He added: “This research is very encouraging as it suggests there could be potential for our existing gas transmission pipeline network to play an important role in connecting hydrogen production hubs to industrial sites across the nation.
“APA’s 15,000 kilometres of gas pipelines are linked and adjacent to some of Australia’s best geographical areas for both blue and green hydrogen production.
“This research provides us with the knowledge that can be used to assess the potential future role they could play in providing a hydrogen supply service.”
Through this research, APA developed a pipeline screening tool that assesses the hydrogen-readiness of pipeline assets, based on key pipeline material and operating characteristics.
When applied to APA’s network, the tool has indicated a high likelihood that about half of APA’s natural gas pipeline assets could be used for hydrogen transportation, in 100 per cent pure or blended form, with little or no changes to their current operating profile.
The remainder of APA’s pipelines largely consist of high strength steel pipelines operating at higher pressure, so further research and materials testing will be required to maintain pipeline integrity while transporting hydrogen.
APA is concurrently undertaking a pre-feasibility study with Wesfarmers Chemicals on the viability of producing and transporting green hydrogen via the Parmelia pipeline to Wesfarmers’ production facilities in Kwinana.
Early findings have demonstrated the pipeline study area is likely to be suitable for green hydrogen development and both parties are now considering whether to progress to a feasibility study.
Watson said: “With billions of dollars invested in gas infrastructure across the country, it makes sense to look at ways to use our existing energy infrastructure to support Australia’s transition to a low carbon future, and to help our customers realise the potential market opportunities that exist for hydrogen.”
More recently, APA reached a final investment decision to build the $450-million Kurri Kurri lateral pipeline, which will connect the Hunter Power Project to the existing Sydney-to-Newcastle pipeline.
Expected to be operational by the end of 2024, the Hunter Power Project is progressing through the construction stage, having poured concrete for two gas turbines earlier in the year and two generator stators being delivered in June.
Under a 30-year gas transportation and storage agreement with Snowy Hydro that APA executed last year, APA will build, own and operate the Kurri Kurri asset, a 20-kilometre gas transmission pipeline, and a 70-terajoule gas storage facility to service the Hunter project.
The New South Wales government granted the pipeline licence in September and with all third-party approvals and development matters finalised, as well as detailed engineering and design, major construction will start before the end of 2023.
About $120 million of the total capital expenditure was spent in financial year 2023 largely to procure some key project materials.
APA has engaged the principal construction contractors on predominantly fixed cost arrangements and works remain on track to be delivered in time for the completion of the Hunter Power Project timeline.
The pipeline will include electric compressors to minimise its operational emissions.
Mr Watson said the Hunter Power Project would be essential to ensure grid stability and support the growth of renewables as coal-fired generation was withdrawn across the National Electricity Market.
Watson said: “Through investments like the Kurri Kurri Lateral Pipeline, APA is focused on ensuring that the lights stay on across Australia – at our schools, our hospitals, in our homes and to support industry – in the most efficient, sustainable way, while we keep driving towards a renewable dominated future.
“Natural gas and projects like the Hunter Power Project will be essential for delivering energy security and ensuring we meet our energy targets in an affordable, fair, reliable, and sustainable way.
“The fastest way for our economy to decarbonise is through the continued, accelerated, exit of coal generation and the accelerated ramp up of renewables.
“That’s why we believe renewable energy, bundled with firmed gas, is the most credible pathway to support the exit of coal out of our energy system.”
