Frontier Energy and Australian Gas Infrastructure Group (AGIG) have signed a Collaboration Agreement to accelerate the integration of green hydrogen into the Dampier to Bunbury Natural Gas Pipeline (DBNGP). The DBNGP is a crucial gas pipeline connecting the North West Shelf gas fields to markets in South West Western Australia.
The formalization of this partnership marks an important milestone in the development of the hydrogen economy in Western Australia, according to Frontier Energy’s Managing Director, Sam Lee Mohan. The proximity of Frontier Energy to the DBNGP presents a mutually beneficial opportunity for all stakeholders involved, bringing them closer to the goal of delivering up to 10% hydrogen in the gas networks by 2030 as envisioned by the state.
Hydrogen Park South Australia
AGIG, a market leader in hydrogen blending with natural gas, operates the Hydrogen Park South Australia, a pioneering project in Australia that produces renewable hydrogen gas. The park supplies a 5% renewable gas blend to over 700 gas customers in Mitchell Park and serves various industries through tube trailers, with plans to expand into the transport sector in the future.
In October 2022, Energy Ministers agreed to amend regulations to include hydrogen blends, biomethane, and other renewable gases under the national gas regulatory framework. Previously, the laws referred only to ‘natural gas.’ AGIG and Frontier Energy intend to engage in discussions regarding the necessary arrangements for injecting an agreed percentage of hydrogen into the DBNGP, pending approvals and licenses.
The collaboration between AGIG and Frontier Energy aims to conduct a Front End Engineering Design study to develop an injection and hydrogen blending station. Additionally, Frontier Energy’s Bristol Springs Project, which recently underwent a Definitive Feasibility Study for its Stage One expansion, has demonstrated the potential to be a cost-effective and early player in Australia’s green hydrogen industry. The project forecasts a production cost of $2.77/kg, one of the lowest reported costs for a green hydrogen project of its scale in the country, as estimated by the International Energy Agency.
Currently, Frontier Energy is engaged in offtake discussions with foundation customers and exploring project financing options. The target for production from the Bristol Springs Project is set for late 2025.