HYDROGEN IN THE GAS DISTRIBUTION NETWORKS A kickstart project as an input into the development of a National Hydrogen Strategy for Australia PARTNERS Prepared by GPA Engineering for the Government of South Australian in partnership with Future Fuels CRC on behalf of the COAG Energy Council. FURTHER INFORMATION Clean Energy Transition Department for Energy and Mining Government of South Australia T: + 61 8 8429 2722 E: [email protected] www.hydrogen.sa.gov.au DISCLAIMER The authors warrant that they have taken all reasonable care in producing this report. Although all reasonable efforts have been made to ensure quality, the Department for Energy and Mining (DEM) does not warrant that the information in this report is free from errors or omissions. DEM and its employees do not warrant or make any representation regarding the use, or results of the use, of the information contained herein as regards to its correctness, accuracy, reliability and currency or otherwise. 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Neither may information be stored electronically in any form whatsoever without such permission. 1/11/2019–205215 EXECUTIVE SUMMARY In December 2018, the Council of Australian The review found that the addition Governments (COAG) Energy Council endorsed the development of a National Hydrogen Strategy (NHS) of 10% hydrogen (by volume) to a and established a dedicated working group to take the typical natural gas blend has no strategy forward and report progress back to COAG. The Working Group is comprised of six work streams, significant impacts or implications of which one is Hydrogen in the gas networks. Under on gas quality, safety and risk aspects, this work stream, a kickstart project was established to “commence work to allow up to 10% hydrogen (by materials, network capacity and volume) in the domestic gas network, both for use in blending (providing the mixture is place of natural gas and to provide at-scale storage for homogeneous). hydrogen”. The scope of the review included investigation A desktop review of the standards identified as of technical impacts of the addition of up to 10% applicable to the gas distribution network was hydrogen into the gas networks, with the physical completed. The following standards were reviewed: limits being the metered injection into and metered y AS/NZS 4645 – Gas distribution networks series; offtake from the distribution networks. It further y AS 4564 – Specification for general purpose included a review of technical standards, and the natural gas; safety and technical regulatory framework for gas distribution networks, to identify barriers and develop y AS 2885 – Pipelines – Gas and liquid petroleum; and recommendations to allow up to 10% hydrogen into y AS/NZS 60079 – Explosive atmospheres series. the gas distribution networks. Review of both the AS/NZS 4645 and AS 2885 series A review of the impacts of addition of 10% hydrogen found that while there is nothing explicitly prohibiting to a typical natural gas blend was undertaken, to the use of up to 10% hydrogen in the standard, these understand the gas quality, materials, network capacity standards have not been written with hydrogen use and blending, and safety and risk impacts to the in mind. Minor gaps in knowledge around network natural gas distribution network. The review used materials and safety were identified for AS/NZS representative gas compositions for the distribution 4645. The potential for hydrogen embrittlement is networks in each state as the basis for calculation greater for pipelines designed under AS 2885, due of the impacts of addition of 10% hydrogen to gas to the increased pressure and higher strength steels quality. This use of representative gas compositions typically applied in this service. Specific research will for each state resulted in more realistic outcomes than be required to close the knowledge gaps for higher a theoretical assessment alone. These impacts and pressure service under AS 2885. AS 4564 defines the considerations were then used as the basis for the gas quality specifications for general purpose natural technical and regulatory review. gas in distribution networks, for provision of gas that is safe and suitable for using in gas burning appliances. The standard is also used in commercial contracts to define the heating value of the gas. While the typical gas compositions in each state remained within the specification limits set by AS 4564 with the addition Hydrogen in the Gas Distribution Networks – 2019 3 of 10% hydrogen (with the exception of the Northern Review of the relevant state safety and technical Territory), in some cases the gas quality fell outside of legislation in Queensland, South Australia, Tasmania, the informative limits of the standard – however this Victoria, and Western Australia highlighted no does not represent non-compliance with AS 4564. substantive barriers to addition of up to 10% hydrogen Similar to AS/NZS 4645 and AS 2885 the standard was into the gas distribution networks, however some of not written with hydrogen envisaged as a component the regulations reviewed also govern downstream installations and gas appliances. Regardless of the of general purpose natural gas. regulatory framework, gas distribution networks and A review of AS/NZS 60079 found that it was applicable downstream users are inextricably linked; in all states, further work is recommended to review implications for small concentrations of hydrogen in natural gas to acts, regulations and standards concerned with through to pure hydrogen. However, further work is downstream appliances and gas installations, in order required to understand the impacts to hazardous area to understand the implications of addition of up to classification of the addition of up to 10% hydrogen 10% hydrogen into the gas networks, beyond the into the gas blend. distribution network itself. The review found that addition of up Despite being outside of the distribution network itself, consideration was also given to whether the to 10% hydrogen (by volume) in the legislation governing safety and technical aspects of natural gas distribution networks gas distribution networks allows for regulation of the hydrogen production facility upstream of the network. has no significant impacts for the It is recommended that a review of the applicable regulatory framework for hydrogen production facilities applicable Australian standards, in each state be undertaken, with a view to identifying but that a review of Australian opportunities for development of consistent principles standards applicable to downstream across state regulations, and that this work be undertaken in parallel with development of a technical installations and appliances should framework of Australian or international standards for also be completed to enable upscale hydrogen production facilities. of hydrogen injection into the gas The review found that addition of distribution networks. up to 10% hydrogen (by volume) to Recommendations have been made to address gaps the gas distribution networks has in technical knowledge and in current standards to no significant implications for the remove any (minor) barriers to hydrogen injection of up to 10% hydrogen into the natural gas distribution applicable Australian state legislation, network. but that a review of legislation A review of the acts and regulations governing safety covering downstream installations and technical aspects of gas distribution networks was undertaken, to understand the regulatory impacts and appliances should also be of addition of up to 10% hydrogen into the gas distribution networks in each state. The regulatory completed. analysis builds on early work prepared by Johnson Winter and Slattery for Energy Networks Australia. Hydrogen in the Gas Distribution Networks – 2019 4 While the national gas market regulatory framework Sixteen recommendations have been was outside the scope of this review, a broad assessment of the impact of blending 10% hydrogen made to address the minor potential on the National Gas Law and National Gas Rules barriers for broad scale injection of was contributed by South Australian Government’s Department for Energy and Mining. While the review hydrogen of up to 10% hydrogen found that there is nothing directly prohibiting the (by volume) into the natural gas blend of 10% hydrogen into existing gas distribution networks, it also considered whether the regulatory distribution networks. framework would continue to apply as intended. The review found that there is uncertainty about whether the definition of natural gas captures blended gas; what impact blending has on the operation of the existing framework; and to what extent the existing framework applies to blended gas. Therefore, it is recommended that consideration be given to amending the National Gas Law and National Gas Rules to provide certainty on how these will apply and operate with blended gas in the distribution network. The review of the national gas market regulatory