New hydrogen fuel production facility to be built in Adelaide

$11.4 million hydrogen production facility finds a home in Adelaide, Australia

A new hydrogen fuel production facility is set to be built in Adelaide, Australia. The project will be developed by the Australian Gas Infrastructure Group and will cost approximately $11.4 million. Some of the funding has been provided by the South Australian government through its Renewable Technology Fund. The new facility is meant to generate the hydrogen needed to power vehicles equipped with fuel cell systems.

Facility will use renewable energy to produce hydrogen

The new facility will make use of electricity generated by nearby wind farms and solar energy systems. This clean power will be used to produce hydrogen fuel. The hydrogen will then be deployed to Adelaide’s gas distribution network. Because the production process relies on renewable energy, it will be significantly more environmentally friendly than conventional production methods. Notably, the facility is expected to play a major role in the introduction of fuel cell vehicles in Australia.

Hyundai sees significant promise in the new project

Hyundai’s Australian division believes that the hydrogen fuel produced by the new facility will immediately impact the roll out of new vehicles. The automaker has been working to promote fuel cell vehicles within Australia for some time and has invested in the development of the country’s hydrogen infrastructure. Hyundai’s latest fuel cell vehicle, the Nexo, is set to launch in this month but will arrive in Australia later this year. With better access to hydrogen, consumers are expected to show more interest in fuel cell vehicles.

Australia aims to become a major supplier of hydrogen fuel

The project represents a step toward achieving one of Australia’s environmental ambitions. The country is eager to become a production hub for hydrogen fuel. Eventually, Australia intends to export the hydrogen it produces to other countries, particularly Japan. Establishing itself as a major part of the hydrogen supply chain has been a costly endeavor, however. The country’s hydrogen fuel infrastructure has been growing slowly, partly due to the costs associated as well as government policies that have limited the renewable energy sector to some degree.