South Australia backs $240m green hydrogen project

South Australia backs $240m green hydrogen project

The South Australian Government has backed a $240m hydrogen project and allocated $37m to upgrade export infrastructure as it takes steps to realise its goal of becoming a national green hydrogen exporter.

Announcing the news today (5th Nov), the Marshall government said it will upgrade the Port Bonython jetty as part of its “ambitious plans to become an exporter of green energy to world markets”.

Premier Steven Marshall said the upgrade will unlock significant investment and export opportunities for South Australia, with hydrogen driving renewed interest in Port Bonython.

The government has been working with Australian hydrogen infrastructure developer H2U on its $240m Eyre Peninsula Gateway Hydrogen Project at Port Bonython.

The demonstrator stage of the project will see a 75MW electrolyser and ammonia production facility installed near Whyalla, with an annual capacity of 40,000 tonnes.

Expected to be completed in late 2022, the Marshall government said this will be the largest green ammonia plant in the world.

“South Australia’s ambition to create, use and export green hydrogen is getting global attention, and has great potential to create jobs and sustain long-term investment,” said Marshall.

“Maintaining this critical piece of infrastructure [Port Bonython] will unlock further export opportunities in key markets, particularly across Asia, boosting economic activity and creating jobs in our state.”

“My government has also been working to assist Australian company H2U to establish connections with potential international customers, and their hydrogen project at Port Bonython is a very exciting one for South Australia.”

“The $240m demonstrator phase of the project is of global significance, but it is just the precursor to a much larger production and export facility, that could see us also strengthen our energy ties with traditional trading partners.”

Trade and Investment Minister Stephen Patterson welcomed today’s announcement, which comes a week after the release of the state’s Hydrogen Prospectus – a key action in South Australia’s Hydrogen Action Plan.

“South Australia has big hydrogen ambitions as we aim to be a national and international exporter of clean power, and this internationally significant project in the Eyre Peninsula will see our state take the lead on the deployment of clean, green hydrogen,” Patterson said.

“Japan in particular has identified green ammonia as a key fuel to reduce their carbon emissions and fuel their economy, and we are keen to contribute to that.”

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