A section of APA Group’s Parmelia gas pipeline south of Perth could viably transport hydrogen, according to a conversion feasibility study revealed by the company this morning.
A section of APA Group’s Parmelia gas pipeline south of Perth could viably transport hydrogen, according to a conversion feasibility study revealed by the company this morning.
Testing on a 43km section of the pipeline between the Kwinana industrial area and Alcoa’s Pinjarra alumina refinery proved that it was technically feasible, safe and efficient to transport pure or blended hydrogen at the pipeline’s current operating pressure.
Successful testing is a milestone for the pipeline, which is in the running to be one of the first hydrogen transmission pipeline conversions in Australia. APA Group chief executive Adam Watson said it was an exciting development for Australia’s energy transition.
“This research is very encouraging and it suggests there could be potential for our existing gas transmission network to play an important role in connecting hydrogen production hubs to industrial sites across the nation,” he said.
The state government’s Renewable Hydrogen Fund contributed $300,000 to the study, and Mines and Petroleum Minister Bill Johnston said hydrogen blending into existing gas networks was a focus.
“The results from APA's pressurised hydrogen testing on the Parmelia Gas Pipeline is great news for the State's renewable hydrogen industry and our transition to a sustainable, net zero economy,” he said.
“Western Australia has a vast gas pipeline network. Hydrogen blending into natural gas networks to support decarbonisation is a strategic focus area for the WA Government.”
During the study process, APA said it had developed a pipeline screening tool which indicated there was a high likelihood that around half its natural gas pipeline assets nationally could be used for hydrogen transportation in pure or blended form.
The company has around 15,000km of gas pipeline infrastructure across Australia.
APA now intends to follow up with detailed safety studies and conversion plans, before moving into a delivery phase for Parmelia.
The work will consider equipment modification needs and investigate supply and offtake arrangements for potential companies.
In May last year, APA signed a memorandum of understanding with Wesfarmers Chemicals, Energy and Fertilisers to assess in parallel the viability of green hydrogen production and transport via the Parmelia pipeline to Wesfarmers’ production facilities in Kwinana.
APA said the pair were also considering progression to a feasibility study.
The full Parmelia mainline gas pipeline spans 416km and currently transports gas from Perth Basin gas fields near Dongara, the Carnarvon Basin via the Dampier to Bunbury natural gas pipeline, and APA’s Mondarra gas storage facility.
It interconnects with ATCO Gas’ distribution network in the Perth metropolitan area.
Hydrogen rollout has been a focus for state and federal governments, with the recent federal budget allocating $2 billion in revenue support for large-scale hydrogen production contracts and the state committing to invest more than $170 million in accelerating renewable hydrogen growth.
Today’s news comes a day after Perth company Infinite Green Energy and South Korea’s Samsung C&T announced plans to develop a world-scale hydrogen plant, also south of Dongara.
APA shares were up 0.5 per cent this morning.
