ReNu Energy and Countrywide Hydrogen announced the signing of a Term Sheet Agreement with Tas Gas Networks and Tas Gas Retail.
The Term Sheet states the parties’ duties and their desire to collaborate in order to accomplish 100 percent green hydrogen delivery to industrial clients and the incorporation of green hydrogen into the current natural gas distribution network.
The Term Sheet grants Tas Gas Networks the opportunity to become an equity participant in the Project and grants ReNu Energy and Countrywide an exclusive period to advance the Project. As reported to the ASX on 24 June 2022, Countrywide is finalising the design of a green hydrogen electrolysis production facility, the Hydrogen Tasmania Brighton Project (the Project), which will be constructed 30 minutes north of Hobart.
The Project entails the generation of green hydrogen, the development of a network to distribute the hydrogen, the incorporation of green hydrogen into the existing natural gas distribution network, and coordination with project stakeholders to assure the project’s successful execution.
Under the terms of the agreement, the parties will explore methods for supplying industrial and residential clients with green hydrogen produced by Countrywide at the Project, including the utilization of existing and new network infrastructure. The firms will investigate the technological and commercial ramifications of delivering clients with both pure hydrogen and natural gas mixtures.
The retail division of Tas Gas, which supplies gas to more than 9,000 industrial, commercial, and residential clients, is the largest gas retailer in Tasmania and will serve as the Project’s foundational retailer. The Project is anticipated to go live in the fourth quarter of 2023, pending clearances and the completion of commercial negotiations.
ReNu Executive Director & Countrywide Managing Director Geoffrey Drucker said: “This partnership with Tas Gas provides Hobart the opportunity to become Australia’s first capital city to significantly reduce the carbon footprint of natural gas. Tasmania is a world leader in the renewable energy industry and this is a key milestone in the State’s strategy to transition to lower carbon energy sources.”
Tas Gas Chief Executive Officer Phaedra Deckart said: “Gas is crucial to Tasmania’s energy security with homes, businesses and industrial customers relying on this form of energy every day. This is why we are pleased to be able to announce today that we will be working with Countrywide to explore opportunities that will introduce a new supply of low carbon gas into the Tasmanian gas network in the form of green hydrogen.
“Energy distribution is often an overlooked part of an energy system, but gas network infrastructure will be critical to the success of Tasmania’s and the nation’s pathway to a successful hydrogen economy. We are fortunate that Tas Gas’ network is one of the most modern in Australia and is ready today to support the safe and reliable supply of hydrogen to help decarbonize the State’s energy supply.”
As the Project advances, the executed Term Sheet is expected to be translated into definitive arrangements. It outlines the parties’ intent to collaborate in order to: Bring the Project to the point of a Final Investment Decision.
Facilitate conversations regarding the finance and location of the gas network infrastructure required to provide consumer access to the green hydrogen produced by the Project.
Resolve challenges associated with the formation of a domestic end-use market for green hydrogen, including legislative, safety, and technological factors.
Negotiate and reach an agreement on the commercial arrangements for Tas Gas Retail’s hydrogen offtake in the Project.
