Spanish-based Solarig has entered into a Memorandum of Understanding (MOU) with Australian energy infrastructure company Jemena.
This partnership aims to assess the feasibility and facilitate the supply of zero-carbon renewable hydrogen to gas users connected to Jemena’s network, starting with regional New South Wales.
The MOU focuses on developing hydrogen production and blending facilities in regional NSW, initially injecting up to 35 terajoules of renewable hydrogen per year into Jemena’s gas distribution network. If successful, the collaboration could expand to additional renewable hydrogen initiatives, positioning NSW as a key player in both national and international hydrogen markets.
Solarig’s Australian Country Manager, Andrew Want, emphasized the urgency of decarbonizing Australia’s energy, transport, and industrial sectors. The company’s strategy involves building green hydrogen infrastructure to support industries like transport, agriculture, and mining, particularly in regional areas with abundant renewable energy resources.
Jemena’s Managing Director, David Gillespie, highlighted the importance of developing a renewable gas market to provide a sustainable decarbonization pathway for gas while contributing to broader economy-wide decarbonization efforts.
The environmental benefits of renewable hydrogen are significant, particularly in reducing greenhouse gas emissions from sectors that are difficult to decarbonize. Using 100% renewable electricity for hydrogen production ensures that the hydrogen is truly green. However, the environmental impact of constructing new facilities and the energy required for hydrogen production and distribution must also be considered.
Economically, the project promises long-term benefits, including sustainable employment opportunities in regional communities and the potential to stimulate economic development. However, the high initial costs of hydrogen production and infrastructure development present financial challenges that must be managed carefully.
The collaboration between Solarig and Jemena exemplifies the type of partnerships necessary to advance the renewable hydrogen sector. By leveraging Solarig’s expertise in renewable energy and Jemena’s extensive gas network, the partnership aims to create a robust renewable gas sector that contributes to Australia’s emission reduction targets.
