The AEM electrolyser uses water extracted from the atmosphere and is powered by solar PV. Credit: Alan Sim.

The Australian Renewable Energy Agency (ARENA) has announced A$1.1m ($0.71m) in funding to natural gas infrastructure company APA Group (APA) for the construction of a renewable methane production demonstration plant in Queensland.

Planned to be built at APA’s Wallumbilla Gas hub near Roma in Queensland, the project aims to demonstrate the renewable methane process.

It is being developed by APA in collaboration with Southern Green Gas.

APA Group CEO and managing director Rob Wheals said: “This unique project is the first step in testing whether it is possible on an industrial scale to create methane using solar-generated electricity, water and CO2 from the atmosphere.

“With this project, we’re aiming to determine whether this carbon neutral process might be part of the green energy solution of the future, and if our pipelines can be used to transport pure renewable energy domestically or to be exported.”

The ‘power to gas’ demonstration plant will have the capacity to produce around 620kg of renewable hydrogen per annum from an Anion Exchange Membrane (AEM) electrolyser.

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The AEM electrolyser uses water extracted from the atmosphere. It is powered by solar PV.

According to ARENA, the plant will convert the produced renewable hydrogen into 74 gigajoules (GJ) of methane, which will be injected into APA’s natural gas pipelines across the East Coast Gas Grid.

ARENA CEO Darren Miller said: “Renewable methane is in effect indistinguishable from the methane that currently fills our natural gas pipelines. The gas network is expected to play a key role in supporting the decarbonisation of Australia’s energy system.

“Renewable methane is compatible with Australia’s developing hydrogen sector in that known technologies can convert methane to hydrogen and vice versa.”