Indicative Analysis of Blending Hydrogen in Gas Networks

Frontier Economics has been engaged by the Commonwealth Department of the Environment and Energy (now Industry, Science, Energy and Resources) (the Department) to undertake an indicative analysis of the economics of blending hydrogen in Australian natural gas distribution networks. Our analysis is limited to a specific gas distribution network servicing urban areas of Melbourne.
We have investigated the economics of blending hydrogen in a natural gas distribution network by examining a number of energy supply options, including options that involve blending hydrogen. While we consider that these cases we have examined are useful for understanding the economics of hydrogen blending at low rates in Victoria, and for understanding the factors that are likely to drive the economics of blending at higher rates or in other regions, it cannot be assumed that the results we find for the cases we investigate will necessarily apply in other regions or for blending at other rates. This report should be read as an assessment of the specific cases we have investigated and our findings cannot necessarily be extended to other cases (such as other locations or other rates of blending)"
The full report can be found via the website of the Australian government at this link