Bills

Hydrogen and Renewable Energy Bill

Second Reading

Adjourned debate on second reading.

(Continued from 19 October 2023.)

The Hon. S.L. GAME (15:38): The Hydrogen and Renewable Energy Bill 2023 enables the government to roll out the next phase of its renewable energy plan. We know that by 2030, the Malinauskas government intends to make the state reliant on renewable energy as a net 100 per cent renewable energy generator. The Grattan Institute recently cast doubt on the government's predictions that the hydrogen plant would allow for 8 per cent savings on the wholesale price of energy, describing this as optimistic.

The government cannot claim it is going to achieve a real reduction in electricity prices if it has not costed in the $600 million worth of investment into its hydrogen plant. The government is effectively spending taxpayer funds on an experiment and has failed to provide clarity on what it will deliver for South Australian taxpayers. There is speculation that South Australians have been sold a $600 million white elephant that will not achieve the promised savings on electricity bills. What is the evidence that this project is good use of taxpayer money?

I am also concerned that this bill may impinge on the land rights of our pastoralists. This bill does not address issues of biosecurity in terms of a proponent accessing land. All relevant biosecurity requirements need to be complied with, including any reasonable conditions set by pastoral landowners and lessees. I understand the Liberal opposition is moving amendments to ensure this happens, and I will be happy to support those amendments. I will also be supporting amendments more broadly that extend the rights of pastoralists and freehold landowners.

Historically, this is a large amount of public money to be spending on a project involving emerging technologies and one reliant on costings prepared in early 2021 before inflation smashed the cost of living for all South Australians. South Australians need immediate relief from cost-of-living pressures that are being further fuelled by soaring energy prices.

Renewables are not the answer. They are inconsistent, expensive, harmful to wildlife and inefficient. They are not fit for purpose as they cannot guarantee base load power. The Malinauskas government is overinvesting in wind and solar-based electricity, and now we can add hydrogen to the list.

The Hon. E.S. BOURKE (15:40): I am very happy to speak in support of this bill that continues to build on the state's leadership in renewable energy generation and decarbonisation. It is clear that large-scale hydrogen generation looms on the horizon as an emerging sector of significance in the global transition to renewable energy. It is an area that will enjoy significant demand both in our region and across the world.

There will be so much opportunity in this growing industry, opportunity that is ours to seize. We in South Australia are in a uniquely advantageous position in terms of our climate's natural suitability to producing hydrogen, with our abundance of sunshine and wind as well as the widespread reputation that we are already enjoying for leadership in the renewable energy sector.

The goal of this bill is to simply clarify and facilitate investments in this important industry. Providing a single, consistent framework that applies across the state and offers certainty to investors, enables efficient development and facilitates economies of scale.

While this bill introduces necessary regulation, it does not impose a burden of red tape that will strangle investment. The intent is quite deliberately the opposite. The regulatory framework the bill seeks to implement will facilitate new investments in this promising emerging industry. We are confident of global demand and we are confident that the opportunity ahead for our state is abundant.

I doubt that any member here remains unclear on what the Malinauskas Labor government is planning to achieve through the implementation of a regulatory framework. It has been well covered in contributions from members in the other place, particularly from the fulsome contributions made by the Premier and the Minister for Energy and Mining, who are the driving force behind this change of having a new clean industry made available in South Australia.

This legislation supports the market to determine what is more commercially viable in hydrogen project developments, including green hydrogen and what is called blue hydrogen, which is created from methane, combined with carbon capture and storage.

It is a piece of legislation that puts in place an investment framework that is not about the political identity of this government but the long-term interests of our state and our community. The framework proposed by this bill positions South Australia to take full advantage of this shifting demand in global energy supply, and that should be recognised as an economic imperative that transcends politics.

A good government seeks to put in place a framework for investment and operation that will outlast its own administration, one that is resilient to the movement of the political pendulum and focuses on sustainable industry development that provides the best possible outcomes for communities, respects native title, respects the interests of our landowners and delivers a net benefit for the environment. That is what this legislation aims to achieve.

We have implemented our hydrogen plan in a way that considers all facets of our community. We have worked with stakeholders to ensure that reserves and wilderness protection areas have been excluded from the definition of 'designated land' in this bill. We also acknowledge and confirm that in no way does this bill override the requirements or protections afforded under the Native Vegetation Act 1991.

Heritage agreements under the act already enjoy legislative certainty. Native vegetation on land subject to a heritage agreement will not be able to be cleared for the purpose of undertaking operations authorised under the Hydrogen and Renewable Energy Act unless clearance is authorised by both the Native Vegetation Council and the minister administering the Native Vegetation Act. In short, anyone who receives a licence under the Hydrogen and Renewable Energy Act will need to comply with the Native Vegetation Act.

A crucial component of the bill is that it protects the rights of pastoral landholders and of landowners. On freehold land project proponents will be required to secure access to land through direct agreement with those who own it. This framework also ensures that in exchange for the ability to access Crown land for hydrogen production activities the state government maintains the right to charge appropriate rent for the use of the land.

The Hydrogen Jobs Plan delivers a significant component of our power generation asset back into the hands of the South Australian public through the construction of a 250-megawatt electrolyser and hydrogen storage for 3,600 tonnes of hydrogen. In partnership with the Australian government, South Australia has finalised a grant agreement to develop the Port Bonython hydrogen hub. This export facility will enable us to ship our renewable energy to the world as liquid or as hydrogen carriers, creating regional jobs in the process.

Together, both governments are investing $100 million to develop this infrastructure at Port Bonython and prepare it to become South Australia's first large-scale export terminal for hydrogen. Along with private sector funding, it is projected that the redeveloped Port Bonython will host projects worth up to $13 billion and generate as much as 1.8 million tonnes of hydrogen by 2030.

The world is watching our work in this space. As project proponents get serious about where they decide to invest, when they come to South Australia they will find a jurisdiction that welcomes the investment, that is prepared for it and that is a simple and straightforward place to conduct business. I congratulate and thank the Premier, the Minister for Energy and Mining in the other place and all the numerous people whose time, effort and expertise have gone into developing this bill.

Debate adjourned on motion of Hon. B.R. Hood.