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Back to News 30 June 2023

Expanded Hydrogen Park South Australia continues to lead the way in renewables

An additional 3,000 homes and businesses across Mitchell Park, Clovelly Park and parts of Marion are now being powered by a hydrogen gas blend produced at Tonsley Innovation District, following an expansion of a pilot project that delivers greener gas.

The project, run by Australian Gas Infrastructure Group (AGIG), which owns and operates Hydrogen Park SA (HyP SA) at Tonsley, was launch in 2021, and involved an initial 700 customers receiving a blend of 5% renewable hydrogen and natural gas delivered through the state’s existing gas network.

The success of the pilot has led to thousands of new residents opting-in to the renewable energy supply as well as the 4.5 star La Loft Hotel – the first commercial business in South Australia to be connected to the initiative. The expansion is also set to include a range of other small businesses and schools in the area.

Minister for Housing and Urban Development Nick Champion said Tonsley Innovation District was providing proof-of-concept for the hydrogen industry.


"[This] is another example of South Australia’s standing as a pioneer of clean and renewable energy. With domestic case studies such as these we can continue to demonstrate the merits of this technology to the world, and South Australia can help power the globe - underpinning conversations we have already commenced with foreign partners."

Minister for Trade and Investment; Minister for Housing and Urban Development and Minister for Planning, Nick Champion MP

Left to right: La Loft Hotel General Manager Simon O’Callaghan; AGIG CEO Craig de Laine; Hon. Nick Champion MP; Hon. Tom Koutsantonis MP; and Hon. Nadia Clancy MP at the announcement at La Loft Hotel.

AGIG CEO Craig de Laine said the decision to expand the HyP SA project reflects confidence in renewable hydrogen as a safe and reliable low carbon fuel source, as well as customer satisfaction with the product.

“AGIG is very proud to be delivering and expanding exciting projects like Hydrogen Park SA, which clearly show how renewable gas can have a growing role in supporting customer choice, energy reliability, affordability and flexibility when it comes to meeting consumer energy needs that also meet our state’s climate goals,” Mr de Laine said.

La Loft Hotel General Manager Simon O’Callaghan said being the first South Australian business to be hooked up to the gas blend further demonstrated the hotels dedication to its green credentials, as well as its ongoing commitment to the green ethos of Tonsley.

"Our guests are making decisions on where they stay with an environmental impact in mind. Its great to know that we can provide exceptional food and service out of our kitchen, while reducing our carbon footprint as well."

La Loft Hotel General Manager, Simon O’Callaghan

The announcement on the pilot project’s extension coincides with the release of the State Government’s Energy Transition green paper for public consultation.

The Green Paper is intended to stimulate a broad discussion to inform the government’s long-term policy statement on renewables, by identifying current and emerging challenges impacting South Australia’s use of energy, and the opportunities that successfully navigating these challenges can represent for the state as it transitions to a net-zero emissions future.

The $14.5m renewable hydrogen production facility at Tonsley is Australia’s largest electrolyser and renewable gas project and a market leader in decarbonisation of Australia’s gas supply. HyP SA has provided a template for a number of similar projects nationally, demonstrating the significance of the South Australia’s leadership in hydrogen development and deployment.

In addition to its gas blend initiative, HyP SA also provides green hydrogen to industry at the Whyalla Steelworks.


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