Hydrogen Production

In reply to the Hon. J.A. DARLEY (28 October 2021).

The Hon. R.I. LUCAS (Treasurer): The Minister for Energy and Mining has advised:

Response to Q1:

The Australian Hydrogen Centre is bringing together industry and government to deliver detailed feasibility studies focused on 10 per cent blending into the entire state gas networks in South Australia and Victoria. This work will also consider the feasibility of converting the gas networks to 100 per cent hydrogen. The studies are due to be delivered in Q1 2022.

The project is seen as the next step to the Australian Gas Network's power-to-gas demonstration facility at the Tonsley Innovation District (Hydrogen Park SA) which was co-funded by the South Australian government's Renewable Technology Fund.

The Australian Hydrogen Centre is supported by the South Australian and Victorian governments, as well as the Australian Renewable Energy Agency, and comprises Australian Gas Networks, AusNet Services, ENGIE and Neoen.

Response to Q2:

The Hydrogen Park SA project, comprising a 1.25 megawatt electrolyser, is demonstrating the feasibility of producing green hydrogen from South Australian renewable electricity and blending hydrogen into South Australia's gas networks.

This is currently Australia's largest operating electrolyser, and an important industry capability building project and a stepping-stone to larger projects.

The project is aligned with action theme 5 of South Australia's Hydrogen Action Plan which seeks to integrate hydrogen into our energy system. Data from the operational project is also informing the feasibility study being undertaken by the Australian Hydrogen Centre, a key action under the Hydrogen Action Plan for fostering innovation and workforce skills development

Response to Q3:

On 18 May 2021, the state government launched an expression of interest (EOI) to develop land at Port Bonython to create a multi-user export focused precinct to leverage the state's advantages in renewable energy, fuels and minerals.

There are seven shortlisted projects from both Australian and international companies, potentially creating hundreds of local jobs, in all parts of the hydrogen supply chain. The shortlisted projects could produce over one and a half million tonnes of hydrogen per annum, which would make South Australia one of the most significant producers of hydrogen in the world.

The level of investment proposed would make the Upper Spencer Gulf a world-class renewable energy industrial precinct and deliver regional jobs growth for decades to come in the towns of Whyalla, Port Augusta, Port Pirie – and beyond.

To support the state's export potential the state government has also committed $37 million to upgrade the Port Bonython jetty.

Response to Q4:

South Australia's Hydrogen Export Modelling Tool and prospectus were delivered in October 2020 and have been designed to assist international hydrogen customers, infrastructure developers and potential investors to make decisions about developing clean hydrogen export projects and infrastructure in South Australia.

The Department for Energy and Mining has provided digital access to the modelling tool to more than 100 hydrogen stakeholders from Australia and overseas.

The export modelling tool and prospectus promotes the state as a world-class clean hydrogen producer and exporter, identifying five potential hydrogen export hubs at Port Bonython, Port Adelaide, Cape Hardy/Port Spencer, Myponie Point and Port Macdonnell.

This export modelling tool and prospectus informed the Port Bonython EOI, which, as detailed above, has seen seven shortlisted projects from Australian and international companies and could result in significant investment and potentially hundreds of jobs.

Additionally, the modelling tool and prospectus has supported the South Australian government's partnership with the Port of Rotterdam, which is a European leader in the transition to renewable energy and has developed an ambitious hydrogen master plan to become the major hydrogen import hub to supply Northwest Europe with renewable energy.