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House of Assembly - Fifty-Fifth Parliament, First Session (55-1)
2023-02-21 Daily Xml
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Hydrogen Power Plant

Mr PATTERSON (Morphett) (14:50): My question is for the Minister for Energy and Mining. Who will pay for the government's proposed hydrogen plant? With your leave, sir, and that of the house, I will explain.

Leave granted.

Mr PATTERSON: Before the election, Labor promised to own and operate the hydrogen production and power plant as a government enterprise; however, the minister released a request for proposals indicating the government is actively considering co-ownership opportunities, and last week we were advised that the minister has travelled overseas to meet with potential investors.

The Hon. A. KOUTSANTONIS (West Torrens—Minister for Infrastructure and Transport, Minister for Energy and Mining) (14:51): The hydrogen plant will be owned by the people of South Australia.

The Hon. D.G. Pisoni: Like the Royal Adelaide Hospital.

The SPEAKER: Member for Unley! The minister has the call.

Members interjecting:

The SPEAKER: Order!

The Hon. A. KOUTSANTONIS: The people who will be building it will be determined by an independent procurement process.

The Hon. D.G. Pisoni: They're not investors: they're being paid.

The SPEAKER: Order! The member for Unley knows better. The minister has the call.

The Hon. A. KOUTSANTONIS: I don't think he does, sir. The independent procurement process will choose the successful group that will be building the hydrogen electrolyser, the generator and associated infrastructure, and it will be owned by the government of South Australia through a government business.

What the member may have misinterpreted in the request for proposal is that the government is also saying to people, 'If you wish to tender to build for us an electrolyser and you wish to build a potentially larger one, we would potentially partner with you. You could own the excess capacity you wish to build.' That does not mean that our 250 megawatts will be owned by anyone else but us. What we are attempting to do—as opposed to what the former government did, which was talk about doing something about hydrogen—is actually incentivise and allow our procurement—

An honourable member interjecting:

The Hon. A. KOUTSANTONIS: What was that? I didn't think you would respond.

The SPEAKER: The minister will not respond to interjections. Minister, you have the call.

The Hon. A. KOUTSANTONIS: We want to make sure that the private sector has the ability, if they wish, to use the procurement power of the state in a way that would help them facilitate their construction of any type of electrolyser or generation that could exceed the capacity that we are looking for. I think it is a very good way, it is an inventive way, of the government using our procurement to try to help the private sector.

But make no mistake: 250 megawatts of electrolyser will be owned by the South Australian government, and 200 megawatts of generation will be owned by the South Australian government, and it will be operating in the public interest for the public good, as opposed to the generators that were purchased in the Weatherill government that were then privatised by the Marshall government, which are now—

Members interjecting:

The SPEAKER: Member for Florey! Order!

The Hon. S.S. Marshall interjecting:

The SPEAKER: Order, member for Dunstan!

Mr Brown: He's still here, sir. I can't believe it!

The SPEAKER: Order! Minister, please be seated. The member for Florey will depart under 137 for the remainder of question time.

Members interjecting:

The SPEAKER: Order! The member for Hammond is also in breach of the standing orders but not for the moment to be ejected.

The honourable member for Florey having withdrawn from the chamber:

The Hon. A. KOUTSANTONIS: We will be owning that equipment. I think the member may have misunderstood the terms of engagement the government is going through in its procurement. I think it is doing an exceptionally good job—

The Hon. D.G. Pisoni interjecting:

The SPEAKER: Member for Unley!

The Hon. A. KOUTSANTONIS: —and I am very pleased with the way the Office of Hydrogen Power South Australia is operating. We are actually going to get some hydrogen development.

Members interjecting:

The SPEAKER: The member for Hartley is on a final warning.

The Hon. A. KOUTSANTONIS: We are actually going to get some people investing in South Australia in green hydrogen as opposed to what happened under the lost four years of the Marshall government when there was almost no investment at all—in fact, no new wind farms, no new—

Members interjecting:

The SPEAKER: Member for Frome!

The Hon. A. KOUTSANTONIS: Two new wind farms were opened under the previous government? When? Which ones?

Members interjecting:

The Hon. A. KOUTSANTONIS: Where? What?

The SPEAKER: Order! The minister will not invite interjections. The minister has the call.

The Hon. A. KOUTSANTONIS: I think someone is imagining having won a second term and thinking about the second term—

Members interjecting:

The SPEAKER: Order!

The Hon. A. KOUTSANTONIS: —as part of his term, but unfortunately they didn't win a second term, so it didn't happen.

Members interjecting:

The SPEAKER: Order!

Members interjecting:

The Hon. A. KOUTSANTONIS: Sorry? I can't hear you from back there. Speak up.

Members interjecting:

The SPEAKER: Order! The minister may well have concluded his answer or be close.

The Hon. A. KOUTSANTONIS: We will be owning that operation in full.

Members interjecting:

The SPEAKER: Order! The member for Morphett and then the member for Newland, reminding for the moment too that the member for Hartley is on a final warning.

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