Owners of AGL Energy Limited (ASX: AGL) shares, rejoice. The company's taking another step towards a green hydrogen-focused future.
It's launching a study to consider transforming its Torrens Island site in South Australia into a renewable hydrogen hub.
The study – lead by the S&P/ASX 200 Index (ASX: XJO) energy giant – will consider input from a consortium of industry participants.
It's just the latest potential green hydrogen hub to be flagged by the company. AGL is also considering producing the renewable commodity in the Hunter Valley.
At the time of writing, the AGL share price is $8.41, unchanged from Friday's close. For context, the ASX 200 is slightly higher in early trading, gaining 0.18%.
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AGL ramps up South Australian green hydrogen plan
AGL has flagged more green hydrogen plans, this time in South Australia. The company is looking into the feasibility of creating a renewable hydrogen hub and producing hydrogen-derived products at the site of its Torrens Island gas-fired power station.
The feasibility study will consider producing the energy commodity to serve both domestic and export markets. It will also map the project's key operational and commercial plans and outline the development of a production timeline.
AGL chief operating officer Markus Brokhof commented:
Whether it's the early potential for co-firing hydrogen with our existing gas engines at Barker Inlet Power Station, the creation of 100% green gas networks for industry, or the development of low-carbon chemicals and future fuels right through to the production of green hydrogen for export, this feasibility study will explore it all.
The study will also benefit from input from key industry members across multiple sectors. They include the ASX 200's Brickworks Limited (ASX: BKW) and Adbri Ltd (ASX: ABC). Port operator Flinders Ports and other energy and renewables powerhouses such as Osaka Gas Australia and Spark Renewables will also be involved.
"With the strong support of large industry partners, AGL's vision is to establish a clean hydrogen industry in Adelaide, and support the creation of an energy efficient, low-carbon ecosystem and circular economy," Brokhof said.
"Torrens Island is perfectly positioned as a future energy hub with strong grid connectivity, access to South Australia's growing renewable energy portfolio and firming technology, nearby industry and potential large green hydrogen users, a highly skilled local workforce, and connections to Port Adelaide with avenues for export."
AGL share price snapshot
The AGL share price has outperformed the ASX 200 through 2022 so far.
The stock has gained 37% since the start of this year. Meanwhile, the index has slumped around 13%.
The AGL share price is also 9% lower than it was this time last year. In that time, the ASX 200 has dropped 12%.
