The project will use surplus solar and wind energy to power a 500kW electrolyser, splitting water into oxygen and hydrogen molecules – with hydrogen to be injected into Jemena’s existing gas network in small amounts, demonstrating the potential of existing gas networks as a form of carbon-free energy storage.
The funding will be provided to Jemena through the Australian Renewable Energy Agency.
Energy Minister Angus Taylor said as the proportion of intermittent generation increased, energy storage was becoming increasingly important to ensure the stability of the electricity grid.
The technology has been successfully trialled in the UK and Germany.
“This project is an example of how the government is supporting Australian innovation and opening new markets for businesses,” Taylor said.