In its final report for a hydrogen and renewable gas review, AEMC has proposed recommendations and accompanying draft rules which it claims are critical steps toward the development of a national hydrogen and renewable gas industry.

It is hoped the recommendations will pave the way for setting up national regulatory frameworks to safely supply hydrogen blends and renewable gasses to appliances in homes and businesses, coming in support of Australia’s emission reduction plans.

Last Friday (September 9), the Climate Change Bill was passed in the country, setting an emissions reduction target of 43% against 2005 levels by 2030, while aiming to reach Net Zero by 2050.

Read more: Australia passes Climate Change Bill and targets hydrogen growth

In addition to offering certainty to market participants and investors, the AEMC says the review provides clarity around access to pipelines, as well as supporting decision-making by market participants and consumers.

New South Wales (NSW), Australia, in November 2021, saw hydrogen blended into its gas networks for the first time as part of a two-year trial.

Read more: Clean hydrogen blended into New South Wales, Australia, gas network for the first time

Anna Collyer, Chair of the AEMC, said, “From our perspective at the AEMC, hydrogen is fascinating because of the way it uniquely intersects with both gas and electricity markets. It’s a future source of renewable fuel, but it’s also set to become the largest industrial customer for electricity in the National Energy Market’s (NEM) history.

“We can’t know exactly what shape a Net Zero power system will take, but we can define the problems we need to solve to there and create space for innovation to find the solutions.

“That’s what this work does. Hydrogen has the potential to deliver solutions we need for a Net Zero future, and by extending regulatory frameworks, we allow participants to develop their business and facilitate innovation.”

The Commission has said written submissions on the recommended draft rules are open until October 13, 2022.

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