The Australian Government is supporting an Australian-first trial of a renewable hydrogen-powered electricity generation facility in Western Sydney.

The innovative project will use surplus solar and wind energy to power a 500kW electrolyser, splitting water into oxygen and hydrogen molecules.

Through the Australian Renewable Energy Agency (ARENA), the Government is providing $7.5 million in funding to Jemena for the trial.

The hydrogen will be injected into Jemena's existing gas network in small amounts, demonstrating the potential of existing gas networks as a form of carbon-free energy storage.

As the proportion of intermittent generation increases, energy storage is becoming increasingly important to ensure the stability of the electricity grid.

The development of renewable hydrogen production, storage and export facilities at scale would also deliver economic benefits to Australian businesses and communities and provide reliable, affordable and low emissions energy to overseas trading partners.

This technology has been successfully trialled in the United Kingdom and Germany.

This project is an example of how the Government is supporting Australian innovation and opening new markets for businesses.