SA Hydrogen Plant Design and Delivery Call


The Malinauskas government has begun requesting design and delivery concepts for the construction of its $593 million hydrogen plant near Whyalla, the first major step forward in its plan for hydrogen employment since its election in March.

Speaking at the Australian Hydrogen Conference in Adelaide this morning, where more than 700 global energy leaders converged, Prime Minister Peter Malinauskas said the market sounding process would be open from today until July 15.

He said the government had forecast that its hydrogen power station would lead to an 8% reduction in the wholesale price of electricity in South Australia.

It would do this by using “net negative demand electricity” during the day when the market is flooded with excess renewable energy to produce hydrogen. The hydrogen would then be stored and used later to generate electricity when the price rose and renewables were unavailable.

The project, which was a major Labor pre-election pledge, is expected to include a 250MWe hydrogen electrolyser, a 200MW combined cycle gas turbine generator powered primarily by hydrogen and a hydrogen storage facility. of 3,600 tons which will be equivalent to one of the largest in the world. hydrogen power plants.

“The primary purpose of the hydrogen generator is to provide surge capacity to other renewable energy generators in South Australia so that they can compete in the wholesale market for large industrial power contracts” , the Prime Minister said at the Adelaide Convention Center conference.

“It is a bold and ambitious policy, it is an expensive policy, it is South Australian taxpayers through their government who are taking some risk, but we are doing it deliberately and knowingly because we believe government leadership has a role to play in being able to encourage a partnership with the private capital industry to see this industry take off.

Prime Minister Peter Malinauskas addresses the Australian Hydrogen Conference 2022 in Adelaide. Photo: Courtesy of the Department of Energy and Mines.

Malinauskas also this morning pledged his government’s commitment to the Port Bonython Hydrogen Hub, previously announced by the Marshall and Morrison governments. This is the government’s first declaration of support for the center since its election.

The government will also develop new dedicated hydrogen legislation to license and regulate hydrogen production in South Australia.

The new law will provide a one-stop shop for the government to license and regulate hydrogen generation projects, similar to what was granted to the oil, gas and geothermal industries in South Australia by the through the Petroleum and Geothermal Energy Act 2000.

The scope of the new law will cover the manufacture of all forms of hydrogen, including green hydrogen made from renewable energy and blue hydrogen made from methane in conjunction with the capture and carbon storage to permanently sequester associated carbon dioxide emissions.

While its hydrogen jobs plan was announced in March 2021, the Labor Party only announced Whyalla as its preferred location in March this year, just weeks before the national election.

He said he would form a panel of experts to report within 90 days of the March 18 election to identify the most suitable plot of land owned by the Crown or Whyalla Council in the Whyalla area. and Port Bonython.

The exact location of the factory has yet to be revealed, but it is likely to be near Port Bonython.

Located 16 km from Whyalla in the Upper Spencer Gulf, Port Bonython has a deep sea liquid hydrocarbon export terminal, 1700 hectares of developable land and a 2.4 km jetty, which is under construction. $37 million upgrade.

The Port Bonython Hydrogen Hub has received $70 million in federal funding, $30 million from the state government, and is expected to leverage an additional $40 million in private investment.

Last year, the state government shortlisted seven potential projects in the hub involving Fortescue Future Industries, Origin Energy, H2U, Neoen, Chiyoda, ENEOS Australia, Mitsubishi Australia and AMP Energy.

Malinauskas said Port Bonython has the potential to generate more than 1.5 million tonnes of hydrogen by 2030.

“At Port Bonython, we have a perfectly positioned opportunity to tap into the region’s vast wind and solar resources to create emission-free green energy to fuel hydrogen production,” he said.

“This is the perfect place to launch our green energy revolution…a thriving hydrogen industry will bring great benefits to the region, the state and of course the planet.”

As of early 2022, South Australia’s renewable energy sector has attracted more than $7 billion in investment, with another $20 billion in large-scale wind, solar and storage projects publicly announced in the pipeline. development. This additional investment would provide up to 14 gigawatts

The two-day conference ends tomorrow and will include keynotes from major energy companies, an international delegation from Germany and the “father of Australia’s hydrogen movement” and former chief scientist Dr Alan Finkel.

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