APA is investing in future fuels through our Pathfinder Program established in FY21, to understand the requirements to support clean molecules in either existing or new infrastructure. In May 2023, our landmark Parmelia Gas Pipeline (PGP) conversion project in Western Australia confirmed via pressurised hydrogen laboratory testing the technical feasibility of converting a 43km section of the PGP to carry 100% hydrogen.
The testing results indicate it is technically feasible, safe and efficient to run the 43km section of the pipeline at the current operating pressure using hydrogen. The project will now consider preparing the section of pipeline for hydrogen service, and will include detailed safety studies and conversion plans, while continuing to investigate potential supply and offtake opportunities.
Off the back of this research, APA has developed a Pipeline Screening Tool (PST) that provides a high-level assessment of the hydrogen readiness of its national pipeline assets, based on key pipeline material and operating characteristics. Initial assessments using the PST indicate there is a high likelihood that around half of APA’s natural gas pipeline assets could be used for hydrogen transportation in 100% pure or blended form, with no, or small, changes to their current operating profile. For the remainder of APA’s pipelines, which consist largely of high strength steel operating at higher pressure, further research and materials testing will be required to determine if any changes in operating pressure are needed to maintain pipeline integrity whilst transporting hydrogen.
Supporting the PGP conversion project is a Memorandum of Understanding between APA and Wesfarmers Chemicals, Energy and Fertilisers (WesCEF), signed in May 2022. As part of this, we committed to a pre-feasibility study to assess the viability of producing and transporting green hydrogen via the PGP to WesCEF’s production facilities in Kwinana. The findings were promising, demonstrating that the PGP study area is likely to be suitable for green hydrogen development. APA and WesCEF are now considering the results further.
In September 2021, APA joined an international consortium in an effort to establish Queensland’s largest green hydrogen project – the Central Queensland Hydrogen Project (CQH2). In April 2023, APA paused our involvement in the early stages of the CQH2 project but believes the project has an exciting pathway ahead. APA remains interested in a future role in the project and continues to be involved in other Queensland projects developing hydrogen export supply chains.
Pathfinder is investigating other hydrogen and Carbon Capture and Storage (CCS) project opportunities where APA can bring its market-leading energy infrastructure expertise and experience to large-scale projects.
