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House of Assembly - Fifty-Fifth Parliament, First Session (55-1)
2022-10-20 Daily Xml
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Grievance Debate

Hydrogen Production

Mr PATTERSON (Morphett) (15:08): It is that time of year again. The end of footy season trips are in full swing and there is no exception here in the South Australian parliament, with a massive boys' trip to Japan featuring the Premier and his mates the member for West Torrens and the member for Taylor. But, on closer inspection, all this trip seemed to be about was just a reannouncement of previous relationships that had been built up by the former Liberal government.

Companies such as Mitsubishi, Santos, H2U and ENEOS were part of a consortia that the former Liberal government put together as part of the successful $140 million Port Bonython hydrogen hub announced in just April this year—companies that were committing tens of millions of dollars in partnership with the former government. That also includes other Japanese companies, such as MHI, KHI and Marubeni, in other forms of hydrogen work being done right here in South Australia.

These announcements really are a distraction from what progress is actually being made on the ground here in South Australia right at a time when ESCOSA released its latest electricity household bill prices that show that electricity bills have gone up by $218 for households in South Australia, with more rises expected. So, here we are, six months after the election, and there are still many questions surrounding the government's $600 million experimental hydrogen power station. South Australians deserve to know where it is actually going to be situated, when exactly it will be built and how much it is going to cost South Australian taxpayers.

Just before the election in March, the Premier put out a press release with the claim that 'if elected, Labor will form an expert panel to report back within 90 days to identify the most appropriate parcel of land' in the Whyalla region. Well, it has been over 210 days since the state election and we are still waiting to hear from the government about the precise location of their $600 million experimental hydrogen power station. It certainly does not give South Australians confidence that this is on track, and it is just another example of an election commitment that has been broken by this Malinauskas Labor government.

Another election commitment they made was that it was going to be operational by the end of 2025. South Australians are a little bit confused by this because just last week on radio the Premier was heard to say on FIVEaa, 'We plan to have a plant up and running by 2026.' The same morning, on ABC radio, he then said that 'our hydrogen power plant, which we will have built by 2026'. But, hold on a second, that is not what was claimed in the glossy election brochures. Finally, we have the elephant in the room—or, should I say, the white elephant in the room—that is, the price tag for this experimental hydrogen power station.

South Australians are rightly concerned about the ultimate cost they are going to be up for. In fact, so is the Auditor-General. In his 10th report of 2022, he outlined that the experimental hydrogen power station is the most significant new investing initiative, that its detailed costings are not yet finalised but that it was only based on independent advice from Frontier Economics.

As we all know, under the current state and federal Labor governments, inflation is rising and the cost of goods and services has gone up even over the last six months. Do not take my word for it; this is what the Treasurer had to say speaking in question time most recently: the increasing cost of components required for commercial construction have soared. Well, we have already seen massive delays and blowouts for the new Women's and Children's Hospital and, under the member for West Torrens, big delays and major cost blowouts for the north-south corridor.

South Australians are now looking down the barrel of yet another major project facing delays and cost blowouts under the watch of the Minister for Energy. He was known previously in his former life as the Minister for Blackouts, and this time round he has gained a reputation as the Minister for Blowouts. The Minister for Energy and Mining cannot be trusted to deliver this $600 million experimental hydrogen power station on time and on budget.

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