Log in
Show password
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 
  1. Homepage
  2. Equities
  3. Hong Kong
  4. Hong Kong Stock Exchange
  5. CK Hutchison Holdings Limited
  6. News
  7. Summary
    1   KYG217651051


SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Future proofing: Australia's gas networks look to go green with hydrogen

02/21/2021 | 11:56pm EDT

MELBOURNE (Reuters) - Australia's natural gas pipeline owners are working to future proof their A$75 billion ($59 billion) in assets amid a global push towards clean energy, running tests to blend hydrogen with gas and produce green methane to replace the fossil fuel.

Cashing in on rare bipartisan support for hydrogen across Australia's national and state governments to help cut carbon emissions, pipeline and network owners have already committed A$180 million to a range of projects involving green hydrogen.

Australian states have pledged to achieve net zero carbon emissions by 2050, in line with many developed countries, but Canberra has yet to commit to the 2050 timeframe.

"It's a business risk we all need to manage," said Ben Wilson, chief executive of Australian Gas Infrastructure Group (AGIG), owned by units of Hong Kong-based CK Group.

"What started out as defensive has become an opportunity, particularly given our renewable energy sources. We can become the world's largest exporter of green hydrogen," he told Reuters.

Pipeline owners seeking government funding for hydrogen projects aim to show how their infrastructure can be used to deliver hydrogen in blends with gas and store hydrogen as a form of renewable energy storage.

"At the end of the day, we also think that continuing to use this infrastructure allows the whole economy to decarbonise at a lower cost," said Dennis Van Puyvelde, head of gas for Energy Networks Australia.

A study done for the industry body last year found that to achieve net zero emissions by 2050, building a hydrogen distribution network would cost half as much as expanding power networks to serve businesses and industries that currently rely on gas, and save Australia some A$13 billion.

Pipeline companies are working on a shorter time frame than 2050, as some states are pushing to have 10% hydrogen in gas pipelines by 2030.


A study done for the government found hydrogen can be safely added to gas supplies at up to 10% by volume without having to modify pipelines or appliances.

Van Puyvelde said the advantage of blending hydrogen into gas allows for a gradual buildup of the hydrogen industry, requiring electrolysers of up to 1 gigawatt, compared with the much bigger, more costly electrolysers that will be needed for green hydrogen exports.

In the first test of hydrogen into a distribution network in Australia, AGIG is set to start injecting a 5% blend of green hydrogen by volume in gas next month, going into 700 homes in Adelaide.

Jemena, a company owned by State Grid Corp of China and Singapore Power, is working on a similar government-backed project in Sydney, blending up to 2% hydrogen into the country's biggest local gas network later this year.

More projects are in the works, with pipeline companies shortlisted for A$70 million in hydrogen funding from the government, the Australian Renewable Energy Agency said.

For the longer term, the industry is closely watching Europe's biggest energy grid operator, E.ON, which is converting a gas pipeline in Germany to deliver pure hydrogen.

Beyond hydrogen, the ideal replacement for natural gas would be green methane, if it could be produced commercially. Methane is chemically the same as natural gas, the fossil fuel.

Testing the potential, APA Group, Australia's biggest pipeline company, is building a demonstration plant in the state of Queensland that would use solar energy to power an electrolyser to split water, produce hydrogen and combine that with carbon dioxide extracted from the air to produce methane.

The project has attracted interest from U.S. companies, and if it works, could aid all companies around the world, like APA, that have billions of dollars invested in pipelines serving liquefied natural gas (LNG) plants.

"Assuming it's successful, it would be compatible with existing LNG infrastructure. You wouldn't need to retrofit," APA's head of transformation Hannah McCaughey told Reuters.

(This story corrects paragraph 3 to fix formatting)

(Reporting by Sonali Paul; Editing by Ana Nicolaci da Costa)

By Sonali Paul

ę Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
APA GROUP -4.73% 8.46 End-of-day quote.-12.33%
CK ASSET HOLDINGS LIMITED 4.06% 43.55 End-of-day quote.9.42%
CK HUTCHISON HOLDINGS LIMITED 1.37% 51.7 End-of-day quote.-4.44%
CK INFRASTRUCTURE HOLDINGS LIMITED 0.93% 43.2 End-of-day quote.3.72%
E.ON SE 1.00% 10.928 Delayed Quote.19.37%
POWER ASSETS HOLDINGS LIMITED 0.33% 46 End-of-day quote.9.52%
09/17CELLNEX TELECOM S A : CK Hutchison Attempt To Dissuade UK Watchdog From Asset Sale Probe
09/17CK HUTCHISON : Ooredoo Strike $6 Billion Deal to Merge Indonesian Telco Units
09/16Qatar's Ooredoo, CK Hutchison to merge Indonesian telecom units
09/09Three UK To Reintroduce EU Roaming Charges For Customers
09/06CK HUTCHISON HOLDINGS LIMITED : Ex-dividend day for interim dividend
08/17CK Hutchison and Ooredoo Extend Exclusivity Period for Negotiations on a Combination of..
08/09CK HUTCHISON : agrees with Swire Pacific to acquire 50% interest in Hongkong United Dockya..
08/06AMDOCS : Gets Multi-Year Managed Services Deal From Three UK for Consumer Sector
08/06Hong Kong Hang Seng Slips 0.1% as Property Stocks Weaken Again
08/06CK HUTCHISON : Nomura Adjusts CK Hutchison Holdings' Price Target to HK$71.2 From HK$74.5,..
More news
Analyst Recommendations on CK HUTCHISON HOLDINGS LIMITED
More recommendations
Sales 2021 400 B 51 339 M 51 339 M
Net income 2021 41 845 M 5 374 M 5 374 M
Net Debt 2021 134 B 17 246 M 17 246 M
P/E ratio 2021 4,94x
Yield 2021 5,57%
Capitalization 198 B 25 478 M 25 480 M
EV / Sales 2021 0,83x
EV / Sales 2022 0,74x
Nbr of Employees 172 907
Free-Float 69,5%
Duration : Period :
CK Hutchison Holdings Limited Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends CK HUTCHISON HOLDINGS LIMITED
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus BUY
Number of Analysts 10
Last Close Price 51,70 HKD
Average target price 74,79 HKD
Spread / Average Target 44,7%
EPS Revisions
Managers and Directors
Tzar Kuoi Li Chairman & Group Co-Managing Director
Kin Ning Fok Group Co-Managing Director & Executive Director
Frank John Sixt Group Finance Director & Executive Director
Yick Ming Wong Independent Non-Executive Director
Hoi Chuen Cheng Independent Non-Executive Director
Sector and Competitors
1st jan.Capi. (M$)
INVESTOR AB (PUBL)29.44%68 017
HAL TRUST30.40%15 279
LIFCO AB (PUBL)55.32%12 783