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Gas supplier BOC has announced a $31 million pilot project to produce green hydrogen and build a hydrogen vehicle refuelling station.

The project includes the installation of a 220 KW electrolyser and 100 KW solar array at their Bulwer Island facility, north east of the Brisbane CBD.

The Australian Renewable Energy Agency (ARENA) has contributed $950,000 toward the project.

With capacity to produce 2400kg of renewable hydrogen per month, the system will supply BOC’s existing customer base and also provide up to 50kg of renewable hydrogen per day for the new Brisbane refuelling station.

BOC South Pacific’s managing director John Evans said the project will take advantage of BOC’s existing infrastructure and expertise to support the growth of hydrogen as a zero emission fuel.

“BOC is proud to be establishing a local supply of renewable hydrogen in Queensland that can be easily scalable and replicated across the country. We will also demonstrate our leading refueller technology that has been widely adopted across Europe and the US,” Evans said.

“The renewable hydrogen we produce will provide added environmental value to our industrial customers and facilitate the introduction of HFCEVs [hydrogen fuel cell electric vehicles] in Queensland, while supporting our own production processes at Bulwer Island.”

The project will build on the company’s existing facility producing hydrogen at their Altona site in Melbourne’s western suburbs. As well as avoiding the need to transport hydrogen over long-distances, the new electrolyser will help to advance technology that will be vital to developing Australia's hydrogen export industry.

ARENA has thrown its weight behind the development of hydrogen as an alternative fuel source, funding research and demonstration projects to give the technology a foothold in Australia.

ARENA CEO Darren Miller said BOC will demonstrate the production and use of renewable hydrogen in refuelling, and capitalise on existing gas production and supply chains.

“Hydrogen is a huge opportunity for Australia, both in our domestic economy and internationally as an emission-free energy source,” Miller said.

“In Australia, hydrogen has applications across transport, heavy industry, and as energy storage injected into our existing gas networks. Internationally, we are well placed to become a leading exporter of hydrogen.”

Minister for Energy and Emissions Reduction Angus Taylor said that estimates show global annual demand for hydrogen as an energy source is expected to grow from around 1 million tonnes today to around 35 million tonnes by 2040.

“The development of large-scale hydrogen production, storage and export facilities could deliver economic benefits to Australian businesses and communities and provide reliable, affordable and low emissions energy to overseas trading partners,” he said.

According to a report prepared by ACIL Allen, Australia’s hydrogen export industry could be worth $1.7 billion annually by 2030, and account for 2800 jobs.

The agency has also provided $22.1 million in funding for 16 projects undertaking early stage research into exporting hydrogen, and is contributing to the National Hydrogen Strategy being led by Chief Scientist Alan Finkel.