Ministerial Statement

Machinery of Government Changes

The Hon. A. KOUTSANTONIS (West Torrens—Minister for Infrastructure and Transport, Minister for Energy and Mining) (14:01): I seek leave to make a ministerial statement.

Leave granted.

The Hon. A. KOUTSANTONIS: The functions of two offices, the Office of Hydrogen Power South Australia and the Office of Northern Water Delivery will be transferred to the Department for Energy and Mining under machinery of government changes proclaimed by Her Excellency the Governor.

Both offices will cease to function as attached offices of the Department for Energy and Mining, while the functions of the chief executive of both offices will be subsumed by the chief executive of the Department for Energy and Mining. To support the state government's strategic focus on securing the long-term future of the Whyalla Steelworks, a significant new role has been created that will lead a small team overseeing the transformation of the steelworks as it realises its transition to producing green steel.

Mr Sam Crafter, who has led the Office of Hydrogen Power SA, has been appointed to the new role of State Lead, Whyalla Steelworks Industrial Transformation, operating within the Department for Energy and Mining. Whyalla is the focus of the single biggest economic support and stimulus package in South Australian history and remains an intense focus for government through the administration of OneSteel Manufacturing and the subsequent transition to decarbonise iron and steel production.

The former Office of Hydrogen Power SA has been heavily involved in fostering industry development in this region, working with industry and government to help drive hydrogen opportunities in South Australia. This goes beyond the Hydrogen Jobs Plan, a project which the government recently deferred, pending discussions with the Whyalla Steelworks' next owner as to how best the state can assist them to realise the vital transition to green iron and steel. The creation of the Whyalla Steelworks Industrial Transformation team will build on those connections and corporate knowledge to give the steelworks the best chance to flourish in the long-term.

The budget allocation for the Hydrogen Jobs Plan has been redirected to the Whyalla Steelworks support package. We expect the vast majority of capital already expended will be recouped when we agree to terms with an alternative operator for the four 50-megawatt turbines ordered for the Hydrogen Jobs Plan, with a stipulation that they be operated in South Australia to provide additional generation capacity.

The Office of Hydrogen Power's other projects have included taking carriage of the Port Bonython Hydrogen Hub, as well as expanding supply chain capacity and facilitating industry research collaborations. Projects such as Zero Petroleum's feasibility study, in partnership with an aviation industry consortium led by Adelaide Airport and Qantas Airways, into the development of a low carbon sustainable aviation fuel production facility in Whyalla will continue. This project has the potential to create up to 150 full-time equivalent jobs during construction.

The functions of the Office of Northern Water Delivery, including overseeing the Northern Water project, will now be undertaken by the Department for Energy and Mining, led by Paul Martyn, as chief executive. The consolidation of the functions of the Office of Northern Water Delivery within DEM come after the significant planning work already undertaken by the former office in collaboration with DEM and the Department for Infrastructure and Transport.

A final investment decision is expected within the next year. This move highlights the significance of the opportunity presented and allows us to leverage the industry connections and knowledge within DEM to maximise this opportunity.