National Hydrogen Strategy Issues Papers

NB please review the attached document. Some of the material below is in table form that is clearer to read in the attached document.

All gases interact with and affect the materials of network infrastructure. Therefore there is no defined ‘readiness’ level for hydrogen blending. To consider the appropriateness of hydrogen blends we need to consider the effects of the gas on the material over time. Older materials within existing networks are less suitable for hydrogen blending than new materials, for reasons including the specific properties of the materials and their age. For initial blending of up to around 10%, we are confident that the majority of our networks and materials including mains, meters and associated equipment are hydrogen ready.
The current generation materials that make up our more recently constructed distribution networks (eg, polyethylene (PE) or coated steel) are capable of transporting 100% hydrogen. Tables 1 to 6 provide an indication of regional networks, constructed over the last two to three decades, which meet these standards and provide the ideal test bed for 100% hydrogen. These networks represent a wide range of towns in terms of population, industries and local economies.

Table 1: AGIG (sub or regional) distribution networks with no cast iron or uncoated steel mains – South Australia
South Australia
Angaston Murray Bridge Port Pirie
Berri Nuriootpa Whyalla
Freeling Peterborough Tanunda
Mount Gambier

Table 2: AGIG (sub or regional) distribution networks with no cast iron or uncoated steel mains – Vic Outer Melbourne
Victoria – Outer Melbourne
Epping Berwick Mornington Peninsula and towns
Healesville Clyde Narre Warren
Mernda Cranbourne Officer
Whittlesea Hampton Park Pakenham
Donnybrook Lyndhurst

 
Table 3: AGIG (sub or regional) distribution networks with no cast iron or uncoated steel mains – Vic Regional
Victoria – Regional
Bairnsdale Kyabram Tatura
Benalla Longwarry Tongala
Beveridge Maffra Trafalgar
Broadford Merrigum Traralgon
Chiltern Mildura Wallan
Churchill Moe Wandong Heathcote Junction
Cobram Morwell Wangaratta
Darnum Rosedale Wangaratta East
Drouin Rutherglen Warragul
Echuca Sale Wodonga
Euroa Seymour Yarragon
Kilmore Shepparton Yarrawonga
Koonoomoo Tallarook
Table 4: AGIG (sub or regional) distribution networks with no cast iron or uncoated steel mains – New South Wales regional
New South Wales
Albury Finley Moama
Barooga Gundagai Temora
Bombala Henty Tocumwal
Cooma Howlong Tumut
Culcairn Illabo Walla Walla
Table 5: AGIG (sub or regional) distribution networks with no cast iron or uncoated steel mains – Queensland
Queensland (need to confirm we think everything off the wide bay)
Bundaberg / Wide Bay Hervey Bay Rockhampton
Gladstone Maryborough
Table 6: AGIG (sub or regional) distribution networks with no cast iron or uncoated steel mains – Northern Territory
Northern Territory
Alice Springs
Mains that are nearing their end of life (eg, cast iron) are currently the focus of low-pressure mains replacement programs for each network operator driven by public safety, leak management and Unaccounted for Gas (UAFG, losses of gas along the network). It is recommended they be replaced before introducing 100% hydrogen, but a mixture of 10% is likely feasible now.
Table 7 below outlines our performance to date in mains replacement and expectations in completing this work. It provides a strong overview of the readiness of our major networks for blended and 100% hydrogen. Delivery of these replacement programs can be easily accelerated if required to support
Table 7: Mains replacement progress in AGIG regulated distribution networks
Network Starting Year Low-pressure mains to be replaced at start of programme (km) Low-pressure mains replaced to date (km) % replaced to date Anticipated completion year
Australian Gas Networks - Adelaide Metropolitan 2009 2,005 1,299 65% 2026
Australian Gas Networks – Melbourne and inner suburbs 2011 1,149 916 80% 2022
Multinet Gas Network - Melbourne inner eastern suburbs 2003 3,196 1,319 41% 2033

Meanwhile, for meters and associated equipment there is a minimal and inconsequential change to billing systems, but we have high confidence around blending levels of around 10%. This work is being delivered by the Future Fuels Cooperative Research Council (FFCRC), of which AGIG is a founding member.
Regarding billing systems, consideration will need to be given to the heating values of gas blends which will vary according to the proportion of hydrogen. This is not a limiting factor; gas producers supply gases with different heating values into the system today. However, market participants will need to work through issues as more hydrogen is introduced into networks. Changes in heating values can be incorporated as software or data adjustments as we are doing for HyP SA.
The use of 100% hydrogen in household appliances is possible. At AGIG we already have a number of hydrogen barbeques which are used at community events across the country. The challenge is that the appliances sold in Australia today are designed for use with natural gas, not with hydrogen or hydrogen blends.
Research for the FFCRC suggests that appliances could work safely with blends of 10-20% hydrogen. In Australia, any Type A appliance sold in the market is already tested for 13% hydrogen as a limit. Consistent with this, the characteristics of small amounts of hydrogen blends with natural gas up to 10% are consistent within the limits outlined in AS 4564 – Specification for General Purpose Natural Gas.
Consistent with this, our HyP SA project will blend no more than 5% hydrogen (by volume), whilst internationally, projects are blending up to 20% hydrogen with natural gas for use in homes and businesses.
Pending the above testing and demonstration projects, it is likely that for blends of more than 10%-20% hydrogen, appliance or burner changeover will be required, or innovations deployed (for example the development of burners able to run on both natural gas or hydrogen). To this extent, policy direction from Government will spur innovation in this space. Regulations could be introduced to ensure new appliances are hydrogen ready, ie, designed so as to be adjustable for natural gas and pure hydrogen (much like a Liquid Petroleum Barbeque can be adjusted to connect to natural gas mains today).

We believe there are a number of distribution networks across the country that have the potential to form test beds for 100% hydrogen blending. These networks are predominately made of current generation materials including polyethylene main and steel.
In considering a test-bed network, a number of issues will require consideration. It will be particularly important to consider the different users of natural gas on the network including any commercial/industrial users. The availability of renewable energy resources and/or any electricity transmission capacity constraints will also need to be carefully considered relative to the size of the network, population and likely hydrogen demand.
Within AGIG’s distribution networks there are several strong candidates for further analysis particularly those towns listed in Tables 1 to 6 above.

For gas distribution networks, the relevant Australian Standard (AS 4645 - Gas Distribution Networks) is already in place and provides the basis for risk-based management of network safety. This risk-based approach should be maintained for hydrogen. It allows for the specific circumstances (for example specific hydrogen blends) of each network to be considered in developing and maintaining gas distribution networks, and forms an appropriate platform for the consideration of hydrogen within networks. Similarly, behind the meter standards already exist for meter and gas appliances.
These standards form the basis of legislated safety requirements in all states, and provide the most appropriate first step to consider the technical amendments necessary to enable hydrogen production and blending, and eventually 100% hydrogen. Some consequential amendments to enable hydrogen production and blending may also be necessary to state-based legislation, but this will vary for each state.
This work requires a broad spectrum of knowledge and interests to understand the necessary technical, practical and policy dimensions. The FFCRC and others have begun research to consider necessary amendments through the Social Acceptance, Public Safety and Security of Supply research program. This work is particularly important to reduce any barriers that may be encountered as more hydrogen demonstration projects are implemented.

Both government and industry have important roles to play in addressing possible consumer concerns and building social acceptance.
Community engagement has been pivotal in developing AGIG’s renewable gas production facility, Hydrogen Park South Australia (HyP SA) in the Tonsley Innovation District in Adelaide. HyP SA will deliver a 5% renewable gas blend to around 700 customers in the suburb of Mitchell Park (blendedgas.agn.com.au). The information pack provided to the Mitchell Park community and other HyP SA stakeholders is included at Attachment C.
In the early stages of project scoping, we developed a comprehensive community engagement program, designed to provide the community with as much information as required, in an easily accessible manner. This program considered work already completed by the University of Queensland and also took into account results of Focus Group testing conducted by AGN.
We have begun engaging with the Mitchell Park community providing letters, brochures and access to webpages and fact sheets. We have also offered free appliance audits to gas customers. During project engagement we have sought to inform customers that they won’t see any change in their gas bills, the quality of gas they receive or to the high safety standards they expect.
Following the initial letterbox drop, there was an article in the Adelaide Advertiser and we also placed an advertisement in the local paper.
To date, the community response to our program has been in line with that of the Focus Group testing. That is generally a neutral to positive response, and a general appetite for efforts to reduce carbon emissions.
Government and industry need to work together to assure the community that safety expectations are being addressed, while also addressing environmental, cost and reliability concerns in the community. Our Focus Group testing indicated that the community seeks independent (non-industry) validation that the pursuit of hydrogen is safe and in their best interests. Therefore, as standards and regulations are amended to better allow for hydrogen blending, and as project proposals are assessed by regulators, open and transparent engagement with the community for parties outside of industry will be essential to maintain trust.

See attachment document - response is in table form.