Brickworks, Adbri and INPEX to join forces with AGL on new hydrogen hub

The energy giant is assessing the viability of a hydrogen hub in South Australia, with partners including Brickworks and Adbri on board.

AGL’s Torrens Island power station could be converted into a hydrogen hub. Picture: Dean Martin

AGL has launched a feasibility study into building a hydrogen production and export hub in South Australia, and has assembled a consortium of high-profile industry partners for the project.

Building products makers Brickworks and Adbri, global energy company INPEX Corporation, Osaka Gas Australia, and Korean company SK Ecoplant have all signed memoranda of understanding to be involved in the project, which would be sited at Torrens Island - home to AGL’s ageing gas fired power station.

“The study will demonstrate the commercial and technical feasibility of establishing a renewable hydrogen hub and the production of hydrogen-derived products at Torrens Island to serve both domestic users in South Australia and interstate, as well as wider export markets,’’ AGL said in a statement.

“The feasibility study, being carried out by independent advisory firm GHD Advisory, will map key operational and commercial plans for the project, outline the development of a production timeline and is expected to be completed by the end of the year.’’

READ MORE:Australia in the ‘box seat’ for hydrogen, Finkel says

Torrens Island has been home to power generation facilities since the mid 1960s, however AGL has had plans to transition the site for a green energy future since about 2014, when it announced it would mothball some generation units on site.

There were eight older generation units on site across the Torrens A and B power stations, however AGL has decommissioned three of the Torrens A units with the final one to be shut down this September. One of the B units is also scheduled for mothballing this October.

In 2019 AGL opened the Barker Inlet Power Station at the site, replacing some capacity with much more efficient gas-fired generators which can ramp up to full capacity within five minutes.

AGL chief operating officer Markus Brokhof said Barker Inlet had the potential to be co-fired with hydrogen, and the project would play a crucial role in establishing a hydrogen industry in SA.

“This is another big step forward in AGL’s vision for an industrial energy hub at the site of our Torrens Island Power Station and we are coming closer to repurpose the site,” Mr Brokhof said.

“This project ... demonstrates the long-term investment AGL is making in the future of Torrens Island to transform the site to an integrated industrial energy hub.

“We have already decommissioned four fuel oil tanks, six tank bases and have completed the removal of two gantry cranes, as well as getting development underway on our new 250MW battery.

“This also follows the completion of Barker Inlet Power Station, which has the potential to utilise green hydrogen manufactured at the site.’’

Mr Brokhof said the site was well positioned with strong grid connectivity, access to SA’s growing renewable energy portfolio and firming technology, as well as nearby industry and potential large green hydrogen users.

Other members of the consortium include SA’s ports operator Flinders Ports and Spark renewables.

Dr Alan Finkel, a special adviser to the federal government on low emissions technology, told the Australian Hydrogen Conference in Adelaide last month that there were $185bn worth of hydrogen projects in the pipeline nationally.

One difficulty the industry faces however, is building both supply and demand in a balanced fashion.

GE told The Australian recently that its customers were already asking them how much hydrogen their turbines could handle, in anticipation of wider take-up of hydrogen as a fuel.