The agreement will initially result in a demonstration project located on APA property in Dalby, QLD where one of the company’s compressor stations is located, allowing methane gas to be injected into the gas pipeline system.
APA’s proposed role is to build, own and operate the infrastructure assets associated with the project, while Southern Green Gas will handle the development and sell the produced gas.
“The reason we have chosen methane as the carrier for renewable energy and especially renewable hydrogen is the ability to utilise the existing gas infrastructure system,” said Southern Green Gas Managing Director Rohan Gillespie.
“The existing gas pipeline network allows us to access customers here in Australia, as well as export customers through the existing LNG system.
“APA, being the owner and operator of over 15,000 km of high pressure gas pipelines in Australia, is the logical partner for Southern Green Gas.
Renewable methane can be made by using electrolysis to produce hydrogen using solar energy.
Carbon is extracted directly from the air and the hydrogen and carbon are then combined to produce methane.
The carbon extracted balances the carbon emitted when the methane is used, making the methane renewable and carbon neutral.
If the results of the demonstration are positive, both companies plan to develop a world scale renewable methane project in the future.
For more information visit the Southern Green Gas website.
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