South Australia’s incoming Labor government will develop new dedicated legislation to license and regulate the production of hydrogen in the state.

The new act will cover both blue and green hydrogen and is intended to boost the industry in the region in the same way South Australia’s Petroleum and Geothermal Energy Act did for oil and gas in 2000. Labor is consulting on the plan until 15 July.

The government is also calling for designs and delivery concepts for the construction of its new hydrogen facility in the South Australian city of Whyalla.

250MW – Size of electrolyser at planned Whyalla project

Australia's Labor Party ended nearly a decade of conservative rule this month by defeating the incumbent Liberal government. Labor’s manifesto outlined Whyalla as the preferred location for a A$593mn ($425mn) green hydrogen project with a 250MW electrolyser, a 200MW hydrogen-fuelled power station and 3,600t of hydrogen storage. Labor wants the project to be operational by 2025.

South Australian premier Peter Malinauskas reaffirmed the announcements at the Australian Hydrogen Conference in Adelaide this week.

“We are committed to serious action on climate change including building a hydrogen power plant,” he says.

Whyalla is home to a steelmaking plant, which the government wants to decarbonise.

Project portfolio

South Australia already hosts a number of hydrogen projects, and the region’s Eyre peninsula was identified as one of seven key areas that could be turned into hydrogen hubs by the federal government.

Trading firm Trafigura and metals manufacturer Nyrstar have launched a Feed study for a plant that would produce 100t/d green ammonia from a 440MW electrolyser.

The Eyre Peninsula Gateway project is being developed by hydrogen firm Hydrogen Utility. The initial demonstration stage will feature a 75MW electrolysis plant and a 120t/d green ammonia plant.

And Australian oil and gas firm Santos has taken FID on the Moomba carbon capture and storage field, aiming to make the region’s Cooper basin a hub for blue hydrogen production.

Federal strategy

At the federal level, Australia has set aside A$850mn to invest in hydrogen technologies as part of its 2022-23 budget as the nation looks to become a major exporter of the fuel.

Japanese firms have signed a number of provisional agreements with Australian companies as the nation looks to secure supplies of hydrogen, with Japanese gas firm Osaka Gas recently joining Australia’s 10GW Desert Bloom green hydrogen project—one of the largest in the world.

Supply chain studies are underway as part of Australian-German hydrogen supply chain study Hysupply.

A Hysupply delegation was present at the Australian Hydrogen Conference and held a meeting with Malinauskas.

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Author: Tom Young