Australia’s top gas distribution network operator, Australian Gas Infrastructure Group, plans to mix hydrogen into its supplies to take advantage of excess renewable generation.

In February, the company announced plans for an AUD $11.4 million (USD $8.9 million) hydrogen power-to-gas demonstration plant, to be built in Adelaide, South Australia.

The hydrogen produced by the plant will be injected into the local gas distribution network at the Tonsley Innovation District, south of Adelaide, to provide low-carbon gas to homes and businesses, Australian Gas Infrastructure Group said,according to greentechmedia.com.

“The project is expected to be the first in Australia where renewable electricity is stored and distributed in the gas network as hydrogen, providing an additional market for fluctuating renewable electricity,” stated AGIG chief customer officer Andrew Staniford in a press note.

The park is being partly financed with AUD $4.9 million (USD $3.8 million) from South Australia’s AUD $150 million (USD $117 million) Renewable Technology Fund. AGIG will be providing a further AUD $5 million (USD $3.9 million).

The plant will feature one of the largest polymer electrolyte membrane electrolysis machines ever installed in Australia, a 1.25-megawatt system from Siemens, and is scheduled to start producing hydrogen by 2020.