Australian Gas Networks has expanded its national hydrogen push into Queensland with the establishment of a $4.2 million hydrogen plant in Gladstone. The plant will be Australia’s first renewable hydrogen production facility able to deliver up to 10% blended hydrogen across the city’s total 770 residential, small commercial and industrial customer base, the company says.

The project is backed by $1.78 million in grant funding from the Queensland Government’s $15 million Hydrogen Industry Development Fund. Construction will start in November, with the plant becoming fully operational in December 2021.

“The project supports Gladstone’s vision to be a key hub for Queensland’s domestic and hydrogen export industry, just as it is for natural gas today,” said Australian Gas Networks CEO Ben Wilson.

“Domestically, zero-carbon hydrogen offers a pathway to zero emissions from our gas networks and also for transport, in particular heavy haulage.”

The Queensland Government has set a target of 2030 to be an Australian leader in renewable hydrogen production.

AGN owns gas distribution networks across Australia, including networks in South Australia, Victoria and Queensland as well as Wagga Wagga and Albury in regional NSW. AGN delivers gas to around 1.3 million homes and businesses.

AGN is part of the Australian Gas Infrastructure Group.