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House of Assembly - Fifty-Fifth Parliament, First Session (55-1)
2023-09-26 Daily Xml
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Hydrogen and Renewable Energy Bill

Second Reading

Adjourned debate on second reading.

(Continued from 14 September 2023.)

Mr BROWN (Florey) (11:50): When it comes to renewable energy generation and storage South Australia already has the world's attention. Today, South Australia is a recognised world leader in the global transition to renewable energy generation. Thanks to forward-thinking Labor governments we have been recognised in this way since a few years ago.

We made some of our most significant global headlines with the project known as the big battery, the Hornsdale Power Reserve. It is a 150 megawatt, 194 megawatt-hour grid-connected energy storage system co-located with the Hornsdale Wind Farm in the Mid North of our state near Jamestown. I give this explanation despite being certain that everyone in this place would be quite familiar with the project.

Members will recall that the original installation in 2017 was the largest lithium ion battery in the world at the time. Its purpose was, of course, to increase grid stability during adverse weather events because, back in 2017, there was no grid-scale storage in South Australia. Grid-scale storage was regarded as a thing of the future. The market was not ready to invest in grid-scale storage, but our state required greater energy security. We needed that infrastructure and, luckily, a future-focused state Labor government delivered it.

In addition to that security and in light of the global attention the project received—aided not insignificantly by the public profile of the chief executive officer of the company that won the contract to build it—the attention garnered by the project helped to increase awareness for people here in our state, in our nation and around the world of the ways in which energy generation and storage were already changing, and the future potential to change further.

The global clean energy transformation has gained considerable momentum since 2017, as well as gaining significantly increased public awareness and support. The performance of the Hornsdale Power Reserve in these intervening years, and the outcomes that have arisen from its implementation, have sustained some attention in the global media and have contributed to the global reputation that we now enjoy as a leader in clean energy. Positioning South Australia as a pioneering jurisdiction for renewable energy was a great move from a number of perspectives by state Labor governments, and it is particularly remarkable how quickly it has been accomplished.

Historically, all of our state's energy came from coal and gas. Into the 2000s, South Australia obtained 100 per cent of our electricity supply from fossil fuels, with about 30 per cent being imported from coal generators interstate as of 2002. We had only about 2 per cent of renewable wind and solar generation in our electricity generation mix in 2007. The bold and ambitious policies and actions of the Rann government and the Weatherill government in the years since have resulted in a spectacular shift to renewables. We set ambitious targets and then we got on with outperforming them. Only two years later, in 2009, 20 per cent of South Australia's electricity came from wind power.

In 2023, South Australia is powered by solar and wind, backed up by gas. We generate around 70 per cent of our electricity from renewable sources. By 2025-26, we are projected to reach the 85 per cent mark, and we are on track to achieve a target of 100 per cent net renewable energy by 2030. In 2022, we had 180 days where the state was powered exclusively by renewable energy. Let us be very clear about how remarkable that is: from 2 per cent renewable generation in 2007 to periods of 100 per cent renewable generation in 2022. That is a period of only 15 years.

South Australia also has the first power system in the world where rooftop solar is capable, at certain times, of not only meeting but exceeding the entire state's electricity demand. In executing such a rapid clean energy transition by international standards, South Australia has performed extraordinarily impressively, and the world has taken notice. I need not point out that most of this has happened in spite of the Liberal Party's efforts, particularly at the federal level, to talk down renewables, to try to convince the community that the sky was going to fall in and to hinder our nation's transition to the inevitable renewable energy future: a future that most reasonable people would rightly see as an economic imperative in addition to being an environmental imperative.

Looking around at what is happening globally, the Liberals have roundly lost their battle against progress. With the right leadership, our nation and the world will keep getting on with the future while they may choose to continue to demean themselves with their regressive bleating. The Malinauskas Labor government is proud to build upon the work of the Rann and Weatherill governments in boldly pursuing clean energy generation, energy independence for our state and its people and opportunity to lead the world in a new way.

The potential of hydrogen is very significant. It is very well recognised globally, and South Australia is once again attracting the world's notice. The International Energy Agency in a 2019 report on hydrogen identified that unclear regulatory frameworks represent an obstacle to the realisation of the great opportunities hydrogen offers. The bill now before us seeks to extend South Australia's leadership on clean energy by establishing the first legislative framework in Australia for the coordinated rollout of a hydrogen industry.

South Australia has a very strong opportunity in the coincident solar and wind resources that are found in our state, particularly to the north-west of Port Augusta and Whyalla. We are in an excellent position to lead the world in a way that will translate not just to energy independence for our state, and not just to responsible global citizenship in terms of clean energy generation, but to substantial benefit for our state in the form of export opportunities.

The Malinauskas Labor government is positioning South Australia to become a world-class low-cost green hydrogen supplier. It is very clear that the world is headed for a new wave of large-scale hydrogen and renewable energy development. The opportunities are ours to seize, and jurisdictions in our region and around the world will be watching eagerly the progress that we make.

This change in the scale and complexity of the hydrogen and renewable energy sector demands a comprehensive framework that takes broad considerations into account: the needs of our environment, of our communities, of our landowners and, more broadly, of our state's strategic and economic ambitions. This bill paves the way towards ensuring that the development of our hydrogen industry and the further development of our renewable energy sectors will deliver benefits for all South Australians, for the environment and for our First Nations communities.

Providing a consistent framework across the state will facilitate efficient development and regulation of the growing sector as well as providing certainty for the sector and for those investing in it. The bill introduces a transparent, efficient and consultative licensing and regulatory framework that will extend across the life cycle of large-scale renewable energy and hydrogen projects.

This bill applies to both freehold land and government-owned land and state waters. Hydrogen and renewable energy activities on all land types will come under this proposed legislation. A statewide licensing and regulatory framework across every land type will ensure responsible development, facilitate consistent monitoring and deliver community and investor certainty and clarity.

On freehold land, proponents will need to secure access to land through direct agreement with landowners. Freehold landowners will continue to be in control of who can enter their land and under what conditions. The identification of priority areas on Crown land will determine where renewable energy projects can best be hosted and where project proponents will be able to compete for licences and land tenure. Competitive allocation of licences to proponents for Crown land will mean that South Australia only hosts projects that are willing to coexist with current land uses as well as delivering important community and environmental benefits.

The bill introduces the concept of release areas, consisting of designated land, being pastoral land, state waters and prescribed Crown land. Only following a consultation process involving government agencies, native title holders, other stakeholders impacted and, if applicable, an assessment by the responsible minister and the ministers responsible for the Pastoral Land Management and Conservation Act 1989 and the Harbours and Navigation Act 1993, will designated areas be declared a release area.

Through the granting of access to designated land for renewable energy projects, this legislation makes provision for the state to charge appropriate rent in exchange for the use of such land, rent which will be used to share economic benefits across the broader South Australian community.

The scope of regulated activities provided for in the bill will enable our state to adapt quickly to the future composition of the emerging industries by providing flexibility as to what types of associated infrastructure are able to be licensed and regulated under the framework. Five licence types will be created for projects in the generation of renewable energy or hydrogen, covering all stages of project development, from the early research and feasibility stage through to the construction, operation and closure of facilities.

These five types of licence include the renewable energy feasibility licence, the renewable energy infrastructure licence, the renewable energy research licence, the hydrogen generation licence and the associated infrastructure licence. Each licence type was thoroughly explicated by the minister in his second reading contribution. We know that a very important consideration to local communities and to our state as a whole is any potential environmental impact of projects in hydrogen and renewable energies. It is a keen consideration as well for the Malinauskas Labor government.

This bill proposes to regulate and conduct hydrogen and renewable energy development in a responsible and ecologically sustainable manner that seeks to minimise its impact on our state's native vegetation, our biodiversity, our waterways and our parks. The framework proposes to make no change to existing environmental legislation nor the way in which it is administered.

An environmental impact assessment process, which I understand is similar to those already in operation in South Australia, is incorporated into the licensing process to ensure that activities authorised under this framework are managed in such a way as to minimise environmental impacts. Importantly, this includes ensuring that Aboriginal heritage is protected in accordance with the Aboriginal Heritage Act 1988.

The environmental impact assessments will include a statement of environmental objectives that will be provided to the minister for public consultation and approval alongside an environmental impact report. The same stage of the process requires provisions for the end of the project's life, meaning that the project proponent must ensure appropriate decommissioning of infrastructure and the proper rehabilitation of impacted land and waters. The submission of an environmental impact report and the approval of a statement of environmental objectives must occur before a licence is granted to a project proponent to ensure the public have had the opportunity to have their say on a project proposal before the minister makes a decision.

In relation to land that is the subject of a native title determination or is within a registered native title claim, licences will not be granted unless the registered native title holders or claimants have consented to that grant in an Indigenous land use agreement under the commonwealth Native Title Act 1993. To provide flexibility for native title groups, provisions do enable a less formal type of agreement to be negotiated only at the request of a native title group. The government will develop guidelines to support leading practice engagement and negotiations with South Australia's First Nations communities.

We know that opportunities for renewable energy development exist in some of South Australia's most highly prospective regions for minerals, as well as in primary industries regions that are both economically and culturally significant to our state. This means that we need to take care to ensure that the interests of landowners and pastoralists are considered and protected.

The bill seeks to ensure that hydrogen and renewable energy projects can be developed in such a way as to promote coexistence as far as possible with other interests, including through access agreements, mechanisms for dispute resolution, provisions for notice of entry and compensation, and consultation with landowners to ensure impacts on existing uses are minimised.

The bill also seeks to enhance pastoralists' rights relative to rights that now exist under the Pastoral Land Management and Conservation Act 1989 by providing improved access agreement conditions and strengthening dispute resolution mechanisms. The bill establishes the principle that licensees must work to minimise detriment to the interests of the pastoralists and damage to the land.

Licensees must enter into an access agreement with affected pastoralists before any activities are able to commence. The agreement must address access to the licence area and the infrastructure that will be developed within the licence area during all phases, including exploration, construction, installation, operation and decommissioning of infrastructure. Access agreements must also address compensation that is payable to the pastoralists resulting from entry to and use of their lease.

While the bill sets out basic requirements for access agreements, it does not limit what can be agreed. Pastoralists may negotiate with licensees on other matters as they prefer. To further support landowners and pastoralists, the independent Landowner Information Service, funded by government, will be extended to cover renewable energy sector activities. The service will help landowners and pastoralists understand technical and legal information and support them to make informed decisions.

The bill also introduces a notice of entry mechanism for resource tenements. Resource tenements will have the right to object to entry if a renewable energy project will cause material diminishment of their existing rights. The intention and the expectation is that licensees and resource tenement holders will work together to find the path to successful coexistence of authorised activities and existing operations.

It is the intention that material diminishment will be measured against advanced activities, such as advanced exploration, existing mining or production leases, and work program commitments. The existence of a resource tenement is not enough to meet the definition of material diminishment. It is expected that licensees and resource tenements will come to agreement on the manner in which activities and operations will be undertaken, such that there will be no material diminishment of those operations.

I now move to the important subject of the consultation that has been undertaken in relation to this bill. The development of this bill has been informed by genuine consultation processes, beginning early in development on both a comprehensive issues paper released in late 2022 and a resultant draft bill released in May 2023. The government received nearly 200 submissions during consultation.

The advice of First Nations people was sought very early on the design of the reforms. Two South Australian Aboriginal renewable energy forums in Port Augusta were held in November 2022 and March 2023 to understand the issues and challenges of Aboriginal groups and to discuss opportunities to work together on the development of renewable energy.

For the pastoral community, a regional visit, a dedicated workshop and a follow-up online session were delivered to support genuine, quality engagement between the government and this significant stakeholder group on the draft bill. Eighteen information sessions were conducted across South Australia's regions during consultation. Two webinars were held and recorded, with over 200 recognised attendees, and a further approximately 300 views of the recordings. Dozens of meetings were held with key stakeholder groups and individuals, offering the chance to hear directly from government about the proposal and to ask questions.

While the bill is before us now, the conversations with our community and with interested groups are ongoing. The government will continue to work with stakeholders and rights holders on the development of associated regulations as well as on identifying the first release areas in which project proponents will compete for tender under the framework. The bill also includes review provisions, requiring that a review be initiated five years after the commencement of the act and also requiring that reviews be repeated every five years thereafter.

The Malinauskas Labor government is a government that sees opportunity and seizes opportunity. We understand the potential of hydrogen and of the opportunities offered by the ongoing evolution of the global renewable energy transformation, which will only continue to accelerate in the years ahead. We are determined to further extend our leadership in this area. We are superbly positioned to do so. We have the will, and we invite and empower the expertise, and we have a record of success in leading already.

We know that renewable energy generation is a clear environmental imperative around the globe. What can be underestimated or misunderstood, particularly by conservative governments and conservative thinkers, is the economic opportunity and indeed the economic inevitability of the global shift to renewable energy generation and storage. The South Australian community deserves to benefit to the maximum possible extent from the opportunities that we recognise are available to our state and that we recognise South Australia is ideally positioned to seize.

This government is working to prepare for the attraction of significant, high-quality investment in hydrogen and further investment in renewable energies. We have so much to gain, and our global reputation has us already on an excellent footing as we embark upon the next chapter in our history of leadership in renewable energy. I would like to take this opportunity to thank the Minister for Energy's office for supplying me with information to make a contribution today. I am pleased to commend the bill to the house.

Mr FULBROOK (Playford) (12:07): I am very happy to speak in support of this bill. I do not think anyone here can recall a time when South Australia has stood on the cusp of such extraordinary investment. We often hear terms like 'once in a generation' bandied around, but I think this would be an understatement. With a pipeline of works of $20 billion predicted in the near future, a new wave of large-scale hydrogen and renewable energy development sits on the horizon. But for us to realise this ambition some heavy lifting must be done, and this is where the Hydrogen and Renewable Energy Bill comes in.

This 92-page effort seeks to debug our legislative framework to ensure processes are streamlined so we can build on South Australia's global leadership in decarbonisation. It also builds significant momentum around red-tape reduction. I know it is very easy to chastise governments and label an operating framework as being shrouded in red tape. In my eyes, if a rule or regulation upholds a community standard, then it does not deserve this label.

Given the great lengths that have gone into community consultation on this bill, including huge efforts made to preserve standards and environmental management, access to land and respect for Aboriginal South Australians, I am pleased to put on record that this transformative bill ticks all the necessary boxes. We have before us a new act that will facilitate and regulate the generation of hydrogen and renewable energy in South Australia and its coastal waters.

It will do this by establishing a one-stop shop or, as Minister Koutsantonis puts it, a 'one window to government' approach. This will coordinate the expanding hydrogen and renewable energy industries that are emerging across South Australia. Some may say that in a state where 70 per cent of our energy needs already come from renewable sources we are already seeing this expansion, but the reality is that we have not seen anything yet and that, if we play our cards right, the best is yet to come.

We started with our Hydrogen Jobs Plan, and now another piece of the puzzle is confidently placed with the passage of this important piece of legislation. Today, we bring segments of six acts into one, which will minimise red tape for prospective investors and, in doing so, provide certainty to the business world. This primes us to take full advantage of the world realigning its energy supply needs.

While I think we have passed the debate on whether climate change is real or not, markets themselves have essentially decided to accept it as a reality. Given this, we could continue arguing all we like and waste energy there or we can focus on absorbing our share of the $9.4 trillion in investment expected by 2050 to develop a global supply chain for green energy.

While the opportunities may seem abundant, this is not something that will arrive at our doorstep simply by sitting still. We need a first-class approach, and the good news is that we have an operating model already in place that is serving us well and that is ripe for adoption. Our 'one window to government' approach is currently used to license and regulate the mineral and energy resource sectors in South Australia. It has been well received, not just by investors but also in other jurisdictions, and I would expect similar bills to emerge in other parliaments across the country as they play catch-up with how we do things here.

No matter what they do, there are few places in the world that can lay claim to an abundance of both sunshine and wind. Granted, there are places that have more wind and sun than we do, but it is more often the case that they have one or the other—seldom both. By coupling both with the will to succeed, we have caught the attention of the rest of the world, hungry for a cleaner source of energy.

It therefore did not happen by chance that our Premier delivered the opening keynote address at the World Hydrogen Summit in Rotterdam. Our actions have attracted the attention of the world, and they are keen to find out what is happening in our backyard. As even more investors pay attention, they are going to see a jurisdiction that is welcoming and an easy place to conduct business.

Looking at some of the specifics of the bill, it is worth highlighting its universal application. Laws will apply to both freehold and government-owned land as well as in state waters, which irons out any potential ambiguity, with all stakeholders clear that one act covers all hydrogen and renewable energy activities across our state no matter where you tread—or, indeed, float.

While it is favourable to incoming investment, the bill is also clear in enshrining the rights of landowners. It is important that we attract new industries, but it is also vital that we do not kill the old ones that have been the mainstay of our existence. That is why on freehold land proponents will need to secure access to land through direct agreement with landowners, therefore preserving the current arrangements. Given so many green energy projects can coexist with the operations of existing industries, I hope this sends a clear signal to existing South Australian businesses that this act also helps facilitate coexistence, with the potential to add significant value to their existing operations.

While we are not turning our back on existing private enterprise, this bill also gives scope for the state to generate some of its own income to provide much-needed services and infrastructure. This framework makes it clear to proponents that, in exchange for the privilege of access to designated Crown land for the purpose of generating renewable energy, the state government is within its right to charge appropriate rent for the land.

On top of this, I welcome the establishment of the Hydrogen and Renewable Energy Fund. Object (e) of the bill facilitates economic prosperity and benefits for the state. Given the establishment of the fund, I understand it will deliver social and communal benefit and can be used for purposes related to this and other objects of the act, including object (d). This section aims to increase economic, environmental and social benefits for Aboriginal South Australians, and also affords protection and preservation of their heritage along with respecting native title.

Primarily, I have stated how important this bill will be to the operation of business, but I also wish to make it clear that it does not come at the expense of the environmental standards expected by our broader community. The bill and supporting documents make it clear that this new framework will not alter the existing environmental and natural resources legislation or the way it is administered in relation to establishing a large-scale green energy project. As reinforced in the bill's objectives, this includes ensuring Aboriginal heritage is protected in accordance with the Aboriginal Heritage Act.

I understand that five types of licence will be created because of this legislation and relate to key stages of a renewable energy project. I imagine, as the debate continues, this will be examined in further detail and I would imagine the opposition may choose to seek further information, should they choose to go into committee. With that in mind, I want to commend this bill for both its thoroughness and simplicity, with licences covering the early research and feasibility stage right through to the construction, operation and closure of facilities.

Drawing specifically on the decommissioning of facilities, I think it is important to accept that despite the best of intentions every green energy project will at some point reach the end of its useful life. I am sure South Australia is not alone in the drawn-out process with industries that have reached the end of their operations. We have seen this with Port Stanvac and the gasworks. While this legislation helps ensure the impact of new industries will be kinder to our people and soil, it is vital we bolt down what our expectations are right from the start.

In mentioning community expectations, and what we hope to enhance both socially and environmentally from this piece of legislation, I feel at this point there is a correlation between good policy and good business. While we are getting the social and environmental mix right, it is timely to reiterate that the certainty it generates provides a workable set of boundaries for investment to also rally around.

On the very last day of the last millennium, I understand only 2 per cent of our energy was created through renewable sources. This coincided roughly with a deeply unpopular privatisation of our electricity assets. I was 20 at the time and I know I was not alone on this side of the chamber in being worried about what would happen next. With the forces of globalisation gathering speed, we were rightly concerned this would weaken the competitive base of the many products that we were manufacturing locally.

While there have been green shoots, and it is fantastic that we do have our lowest unemployment rate on record, the last two decades have been transformative and at times uncomfortable, to put it politely. The handling of our electricity assets into private hands has meant that economically we have not always been the masters of our own destiny. This is despite the purchase of backup generators by the Weatherill government, which were unfortunately sold off by many of those who sit opposite me in the chamber.

Despite this setback, we are now at a point where the Hydrogen Jobs Plan will deliver a significant and meaningful component of our power generating assets being put back into public hands. We are doing this through the construction of a 250-megawatt electrolyser, 250 megawatts of power generation powered by the electrolysers, and hydrogen storage for 3,600 tonnes of hydrogen, the equivalent of two months' of hydrogen consumption for power generation.

Given its transformative significance, I can imagine there will be many in this room who will want to sell it at the first opportunity. On a slight segue, I lay down the challenge to those opposite to rule that out when their next member speaks to this bill. While we are steadfast in our position that these facilities should belong to all South Australians, we are not anti the private sector also reaping a stake in our investment. This is where the bill comes in.

As I wrote this speech, I had the welcome interruption of having to walk and pick up my son from school. With all sorts of jargon swirling in my head, I looked around at all the parents and asked myself, 'What does this all mean for them?' In short, it means a lot. Like so many people in my community, I have rooftop solar. This is significant, for I understand that Salisbury Downs, one of the suburbs I represent, has the highest concentration of rooftop solar in South Australia.

I am often stopped and asked what we are doing about the measly returns we are getting for the surplus energy that we feed back into the grid. In short, I tell them that we are out there transforming it into a commodity that everybody wants. It is not the easiest conversation to have and not helped when I struggle to get my tongue around the pronunciation of 'electrolyser'. This bill is an important piece of the puzzle we are laying in the hope we can increase the return to mums and dads in my electorate who need more than 6¢ a kilowatt hour to feel their investment in solar has been worth their sacrifice.

The more players we can attract in South Australia, the hungrier the appetite will be for our green energy, be it generated by wind or at a solar farm or from the rooftop of one of my constituents. South Australians are sick of promises of lower energy bills. We have made it clear that we will not do this, but we are clear that the Hydrogen Jobs Plan and bills like this before us today are the trigger point to increase global demand for South Australian sun and wind generated electricity.

Back in my days in the Northern Territory, it seemed to be a catchcry of the Chief Minister that everything he did was about jobs, jobs, jobs. I cannot see this program being anything different. As I looked around the schoolyard that afternoon, it was easy to envisage that the kids running around me will play a pivotal role in transforming South Australia into an energy powerhouse. Some of their parents are doing this already but, given there is $20 billion of investment in the pipeline, it is not too difficult to imagine that these children will be forging a career in what comes next.

Just outside my electorate is Tindo Solar, Australia's only panel manufacturer. I am sure the member for Florey would agree that they are now well placed to generate a significant number of extra jobs as their skills and products come under increasing demand. I also have the RAW Group, with their operations depot proudly within my community of Parafield Gardens. RAW is a 100 per cent Aboriginal owned and managed company, generating meaningful partnerships with industry leaders to increase Aboriginal workforce participation and inclusion.

This includes companies like Fulton Hogan, Lendlease and Hansen Yuncken in areas such as traffic management and civil construction. As investment into green energy continues, I would expect to see a dynamic CE like Allan Jones at the forefront creating hundreds of meaningful opportunities for Aboriginal South Australians.

Just before I finish, I want to thank both the Premier and Minister Koutsantonis for driving this vision all the way to the treasury bench. Their work is exemplary and they will be remembered fondly for what they are doing on this front. I also wish to pass on my thanks to the many people who helped contribute to this bill through public consultation and the development of it into legislation. When the community pulls together we all win, and there is a diverse range of groups from different walks of life who have worked hard to make this happen.

There are a lot of moving pieces behind this bill. What is clear is that it delivers a framework to enhance investment opportunities in South Australia. It does it in a manner that offers certainty, without compromising many of the key elements we cherish as South Australians. We are doing this not only to meet demand from a hungry global market seeking an abundant supply of clean energy but also to rise to this occasion and, in the process, create prosperity for all of us to enjoy.

In appreciation of its clear and worthy intentions and the effort gone into making this all work, I commend this bill to the house.

Ms HOOD (Adelaide) (12:23): I, too, rise to speak in support of this bill. I recall a few years ago having the incredible opportunity of being in Jamestown the night that we switched on the big battery. All the eyes of the world were on South Australia and all the eyes of the world are once again turning to South Australia to be a leader in the renewable energies field.

Just yesterday, our Prime Minister and our Premier stood together to announce that we had finalised a grant agreement to develop Port Bonython Hydrogen Hub near Whyalla, which will create regional jobs and bring Australia another step closer to becoming a renewable energy superpower. Together, both governments are investing $100 million to develop infrastructure at Port Bonython and prepare it to become South Australia's first large-scale export terminal for hydrogen.

This Hydrogen and Renewable Energy Bill has the potential to transform the renewable energy sector in South Australia and provide so much opportunity for our state. Our state's existing energy frameworks have been working relatively well, so much so that we have been able to reach more than 70 per cent renewable energy and continue to be on track in the renewable energy sphere. However, it is clear that South Australians and the rest of the world are eager for even more renewable energy development, now with a focus on large-scale hydrogen production.

When we introduced our Hydrogen Jobs Plan prior to the last state election, the feedback I received in my own community was overwhelmingly positive. Back in 2021, as the Labor candidate for Adelaide I hosted a booked-out community forum in North Adelaide for local Adelaide residents to provide their comments about a potential hydrogen future for South Australia. The feedback was clear: my community has been waiting for something as bold, innovative and forward thinking as South Australia's Labor's hydrogen agenda. It is a plan that takes action on climate change. It will decarbonise our economy through creating greener, cheaper energy to support South Australian industry and businesses to grow. We made this commitment; we secured a mandate and now we are delivering.

As we work towards this new wave of large-scale hydrogen production, our laws must regulate this shift appropriately. The change in pace, scale and complexity of the hydrogen industry demands a single framework that considers and encapsulates every part of the process from beginning to end. This framework must adequately consider environmental needs, as well as the needs of landowners and communities. In addition to this, the state's economic and strategic ambitions must also be realised.

This bill introduces the one consistent framework needed for a large-scale hydrogen industry. It will provide investor certainty, economies of scale and efficient development of the growing hydrogen sector, including regulation.

This bill will introduce new licensing arrangements and impact assessments for projects across all land types. This will enable regulation of the whole project life cycle and discourage land banking activities. We will also see the capture of resources data on Crown land, freehold land and state waters. There will be a pre-competitive identification of priority areas on Crown land, which will determine where we can sustainably host renewable energy projects, as well as determine where project proponents will compete for licences and land tenure.

This competitive allocation of licences will be subject to transparent selection criteria. This will ensure we only host projects willing to embrace coexistence with current land uses that will deliver community and environmental benefits. However, these benefits will only come to fruition if our large-scale hydrogen sector has an environmentally sustainable development framework, including land protection and restoration, where there are financial assurance requirements to ensure land is rehabilitated and returned to pre-existing conditions. It is important that we ensure development occurs in the context of ecologically sustainable practices for circular economy outcomes.

In addition, this bill allows for well-resourced and effective regulation, including full cost recovery for government services through licence fees and charges, with fit-for-purpose compliance and enforcement powers. It also provides for a financial mechanism to share the future benefit of the value associated with access to the state's natural resources, which will derive benefits for the entire state.

It is these elements of the framework, along with pursuing multiple land use outcomes, that will provide fair outcomes for all landowners, communities and others with pre-existing land rights. Under this legislation, landowner rights would be enhanced to ensure sustainable coexistence of industries into the future. Licensees will need to enter into access agreement if on Crown land or have consent and approval from the landowner if on freehold land and this must occur before any activities on the land occur. Similarly, a native title agreement must be reached if the project is to be on native title land.

This bill supports the expansion of the Landowner Information Service, which will improve dispute resolution mechanisms and increase landowner support. This is in conjunction with various access arrangements, which will undoubtedly facilitate negotiation and open up conversations around multiuse and collaborative uses of land.

Early engagement with landowners is key to finding the most suitable land to host renewable energy projects so that hydrogen development can be sustainable and complementary to the existing industry. This bill will further assist in unlocking the state's pipeline for renewable energy projects. As promised prior to the last state election, our government's hydrogen agenda will increase supply of reliable, affordable and clean renewable energy. With a current estimated capital development investment of approximately $21 billion in renewables, this bill will set up our state for success.

I congratulate all those who have worked on the drafting of this bill, from the comprehensive issues paper that was released late last year to a draft bill released in May of this year. In particular, I want to acknowledge the work of our Minister for Energy, Tom Koutsantonis. I was privileged to work for the minister for a number of years, both in his role as Minister for Energy and as Treasurer. I learnt enormous depth of knowledge from the minister in regard to the energy industry and was very privileged to be part of some significant reforms.

The government has been listening to feedback and providing opportunities for community consultation right from the beginning. Almost from inception, the voices of Aboriginal and Torres Strait Islander people have been sought and heard regarding the design of this important framework. In fact, the state has hosted two South Australian Aboriginal Renewable Energy Forums—in Port Augusta late last year and March this year—to truly listen and understand the relevant issues and challenges impacting Aboriginal communities. Here, there was an open discussion on the opportunities to work together in the development of the renewable energy sector.

In addition, a total of 18 information sessions were conducted across South Australia's regions during the consultation period, which is no easy feat. I congratulate all those involved in organising those sessions as well as dozens of meetings, with key stakeholder groups, individuals impacted and those interested all asking questions on this important proposal. I once again applaud all involved in the consultation process.

Those who have shared their views and provided their feedback and those who have listened and implemented these suggestions have created a really strong and solid regulatory framework, but the work does not stop there. Our government continues to work to develop the associated regulations in consultation with the relevant stakeholders and rights holders to take the first step in identifying the first release areas to go out for competitive tender. Review provisions are of course included in this bill as well, so we can see how the framework goes after its implementation and have a review in five years after the commencement of the act and every five years after that.

As we are coming towards a referendum soon, I think on this issue as well it is important to be on the right side of history, and I do believe that our government, the Malinauskas government, along with the federal Albanese government, is on the right side of history. I believe we are leaving no stone unturned in looking at ways in which we can address climate change and decarbonise our economy, not just for the current generation but for future generations as well.

As a mother of two young children, I do not believe that any parent can stand in this chamber and say that they did not do absolutely everything that they could to address the climate crisis, to do everything that they could to increase renewable energies and deliver cheaper, more affordable and greener energy—again, not just for families across our state right now but to ensure that we have a cleaner, greener future for our children, our grandchildren and their grandchildren.

Our state is ready and willing to expand our renewable energy sector through large-scale hydrogen, and this bill will ensure responsible development and operation. With those comments, I commend the bill to the house.

Mrs PEARCE (King) (12:33): I rise to speak to the Hydrogen and Renewable Energy Bill. I do so because it helps to support an incredible opportunity for our state. This bill represents our nation's first legislative framework designed to give direction and a coordinated approach to our hydrogen and renewable energy industries.

Currently, as a state, we have consistently displayed to the country what is possible when it comes to renewable energy, having achieved over 70 per cent renewable energy in South Australia with the existing frameworks that have been set up to serve our state well thus far.

With the pressing need to adapt to the changing community expectations, combined with the scale of the work ahead of us, we now require a single end-to-end framework that considers the needs of the environment, landowners, communities and our state's strategic and economic ambitions. The passing of this bill before us today provides for that consistent framework throughout South Australia. It will give certainty to inventories and provide for economies of scale as well as the efficient development and regulation of this growing sector of the economy, one which is not expected to slow down any time soon.

At the turn of the century, renewable energy provided just 2 per cent of the overall energy mix—now we are at 70 per cent. With our aim to achieve zero carbon emissions by 2050 and respond to the growing threat that the climate emergency presents, we need to act quickly and set in place clear pathways to achieve this goal.

We are lucky that we have abundant wind and solar resources and vast lands and water to match. We are in a wonderful place to capitalise on this, but it will take more than just luck. To capitalise on the more than $20 billion of projects in capital development and to undertake projects with such complexity, we need a single end-to-end framework that considers the needs of all stakeholders.

This bill represents six acts being merged into one. The Electricity Act 1996, the Landscape South Australia Act 2019, the Gas Act 1997, the Petroleum and Geothermal Energy Act 2000, the Planning, Development and Infrastructure Act 2016, and the Harbors and Navigation Act 1993 will all be merged into the Hydrogen and Renewable Energy Act 2023.

While other countries, such as the USA, have the power to stimulate their efforts to decarbonise through measures such as their Inflation Reduction Act through uncapped, open-ended subsidies to produce green hydrogen and the storage of renewable energy, we can compete in other ways, such as this monumental change to streamline how large-scale hydrogen and renewable energy developments are undertaken here in South Australia. It will be a one-stop shop which will facilitate a straightforward, government-led approach to large-scale hydrogen and renewable energy development in South Australia and which will also support our government's Hydrogen Jobs Plan.

But how did we arrive at this bill before us today? Well, it was not without a comprehensive consultation, that is for sure. Having come to government just last year, we got to work straightaway and by late 2022 we had an extensive issues paper released and a draft bill by May 2023 that received close to 200 submissions throughout its consultation.

We made sure that, throughout this process, advice from First Nations people was sought on these reforms. We hosted two South Australian Aboriginal Renewable Energy Forums—in Port Augusta in November 2022 and March 2023—to get insight into any potential challenges and issues and to understand where the opportunities are to work collectively together and ensure the success of the development of renewable energy projects.

For our pastoralists, we held dedicated workshops, followed up by online webinars to ensure quality engagement with the pastoral community was undertaken on this draft bill. Throughout the engagement, we held a total of 18 information sessions across the regions, held and recorded two online webinars which received a follow-up of 300 views, held dozens of meetings with key stakeholder groups to hear directly their feedback on the proposals put to them and to answer any questions that they may have had.

But engagement will not end there with the passing of this bill, as we intend to continue the conversation with stakeholders and rights holders to ensure that regulations which follow the bill work for everyone and to bring everyone along with us on this monumental opportunity for the state and also move forward with them to identify first release areas for a comprehensive tender under the framework. From there, with the bill also including review provisions, it will also be required that a review be initiated at five years following the commencement of the act and then every five years thereafter.

Throughout my time engaging with industry about the technical colleges our government will be building, I heard from stakeholders across many different industries who were excited for the opportunities that the hydrogen and renewable energy projects in the pipeline present, particularly in the Upper Spencer Gulf. This excitement, held by many stakeholders and community members in the Upper Spencer Gulf, is understandable when you, in the words of the Premier, understand that the opportunities present are akin to finding oil in Saudi Arabia or finding gold in Victoria.

Our regions are incredibly important to our state and the communities which make up our regions are an integral part of our state's overall economy. Our investment in the five new technical colleges, with two to be in our regions, represents our understanding of the importance of not only skilling up young South Australians in regional communities with the skills they will need but, just as importantly, setting up pathways to secure and sustainable employment following their school years so that young people can remain in the regions they have a connection to. Growing up in the regions has meant for a long time that if you want to find employment or access further study, you often had to pack up and head towards Adelaide, which is what I had to do following high school.

Last year, when I visited Pirie for the Global Maintenance Upper Spencer Gulf conference to engage with over 400 attendees and industry reps about the technical colleges, I was pleased to see that the feedback received was supportive and highlighted the need for such a project to ensure that there is a sustainable pipeline of workers from the regions so that the big plans we, along with industry, have for the Upper Spencer Gulf can succeed. The benefits flow through to the community—opportunity for workers on planned projects and benefits for the local economy that will follow.

Having just finalised the grant agreement to develop the Port Bonython Hydrogen Hub outside Whyalla, we are on our way to securing our role as a renewable energy superpower. The Port Bonython hub has been a major hub for oil exports throughout the last few decades, with the facility worth billions of dollars to the South Australian economy. It is expected that it could still be worth billions more as we start to see more investment in South Australia's renewable energy industries.

With the state and federal governments both investing $100 million into developing infrastructure at the port, it will become our state's first large-scale export terminal for hydrogen, with the expectation being that we will see the development host projects worth up to $13 billion and generating around 1.8 million tonnes of hydrogen by 2030.

With the world seeking to meet the challenges and opportunities present in the task to decarbonise, the hydrogen we produce here in South Australia will become a highly sought-after global commodity, with green hydrogen putting Australia on the path to becoming a renewable energy superpower and playing a critical role in our local clean energy transformation, such as through the production of green steel. With such an abundance of land, water, solar, and wind resources, we are in a prime spot here in South Australia to place among the top in the world as a low-cost hydrogen supplier.

The bill before us today will introduce precompetitive identification of priority areas on Crown land, which will help to determine where we can sustainably host our renewable projects, with proponents to compete for licences and land tenure. Subject to a transparent selection, applicants will then compete for licences on Crown land and state waters, ensuring that those who are looking to host projects will do so in coexistence with current land users and deliver community and environmental benefits through their projects.

Additionally, this will see the introduction of new licensing arrangements and impact assessments for projects across all land types, enabling regulation of the whole project life cycle, avoiding land banking activities and facilitating the capture of resource data across Crown and freehold land as well as state waters.

Ensuring the environmental sustainability of the project is incredibly important, and that is why this bill has within it a framework that will place the development in context of ecologically sustainable practices and circular economy outcomes. Importantly, this contains a financial mechanism so that we can all share in the future benefit of the value associated with accessing our state's natural resources.

With major components of our state's Hydrogen Jobs Plan to come under the licensing contained in the hydrogen and renewable energy act, this bill before us has been designed to encompass all hydrogen generation, power plants, and the necessary transmission and pipeline infrastructure and storage facilities.

As we take the next steps towards advancing even more clean energy technology in South Australia, building on our rich history of being at the forefront of implementing and gaining the benefits of many of these innovations, our Hydrogen Jobs Plan is set to see South Australia secure a world-leading green hydrogen facility.

This is part of the Malinauskas government's commitment to build the facilities that will see the delivery of more jobs for South Australia, enhanced grid stability and proof of hydrogen production and generation at such scale, while unlocking the rich pipeline of the renewable energy development and the associated manufacturing opportunities. The opportunities flowing from those projects will in turn support South Australian jobs and bring further economic benefit, not only to our state as a whole but to our regional communities, who are once again benefiting the whole of South Australia through their invaluable input to our economy.

We were the first with the big battery up there in the Mid North, we lead the country with regard to rooftop solar, we have proven to the country the power of renewables time and time again and today we begin the next step to prove to the world the power of hydrogen energy. With that, I commend the bill to the house.

Ms SAVVAS (Newland) (12:44): I do think it would be remiss of me to stand here today and talk about hydrogen without mentioning our big announcement yesterday in conjunction with the Albanese federal government. In conjunction with the federal government we are investing $100 million to develop critical infrastructure at Port Bonython, to prepare it to become South Australia's first large-scale hydrogen export terminal. We know that the Spencer Gulf is the right place to do so. They have abundant solar and wind resources, available land and the ability to grow.

This critical new investment is about making not just Australia a global leader but also South Australia, and we will continue to become a global leader in green hydrogen in what is becoming an increasingly competitive market. This is a very important moment for regional South Australia. The development of the Port Bonython Hydrogen Hub will increase regional jobs and move us closer to becoming a superpower in renewable energy.

Today, we are here specifically to discuss our Hydrogen and Renewable Energy Bill. We have long existed as a leader in this space, and although there are existing frameworks that have played a significant role in getting us to reach over 70 per cent renewable energy in this state, the time is very much ripe for us to lead the way in large-scale hydrogen investment. This is a large body of work and requires a complex framework that considers in depth, not only the ambitions of the project itself but the needs of the environment that surrounds it.

We need to protect communities and ensure that places like the Spencer Gulf are properly prepared for the mammoth task ahead. That is just what this important bill does. Having one consistent framework will provide that certainty, not just to those in regional communities but to investors, as well as ensuring that the efficient development and regulation of the sector continues to exist as the industry expands.

The bill is specific to large-scale hydrogen and renewable projects and does not supersede the need for other bodies of work in related portfolios—for example, the development of houses in those areas where the industry will grow. I think that is an important point, as well, to talk about all of the different moving parts here in South Australia that will contribute to the growth of that industry. I would like to touch briefly on what was mentioned by the member for King a moment ago, and that is the expansion of our technical colleges.

I met with someone earlier this week who was discussing the growth of technical colleges across South Australia. She is very much a leader in my local community in vocational training. She said to me that she was yet to find a South Australian who thought that closing down technical colleges or the previous model of vocational and technical training was a good idea. I found that to be a really interesting point.

I see so much benefit in expanding the opportunities for students to take on vocational pathways. Doing so at a high school level, a level that the government is investing in, benefits not only jobs across our state but of course our young people, particularly those who may not be typically academically driven. In my time at high school it was basically suggested to us that if you did not pursue a university pathway there were no other pathways.

Even when I went on to start university, despite having been told that and given that narrative for such a long time at school, we were told on our first day of university, my first day of law school, that we had enough people sitting in first year law across South Australia to replace the entire Australian profession times three. Despite the fact that we had all been pushed very much into doing law degrees and pursuing university-based training, we were also told the second we got to university that none of us would get a job.

I think that is actually something that we need to take on as a government and something we need to take very seriously—the fact that we are training so many individuals in South Australia without there being actual pathways for them to enter, just leaving them with a HECS debt. For so many of my friends, most of them who were required to move interstate to take on those jobs, I think they value the fact that the narrative is changing and that there will be opportunities for students to pursue other pathways, both at school and after school.

I can see very much a place in those technical colleges to increase the jobs of the future and for a lot of those students to play a really pivotal role in the hydrogen sector. It has been a very large body of work to get to this place and, like all bills of its kind, it is important to consult with relevant stakeholders. In late 2022, a comprehensive issues paper was released.

The government received almost 200 submissions throughout consultation, including those from relevant Aboriginal groups who provided advice on the designs. The government held two renewable energy forums in Port Augusta not only to understand the particular concerns of Aboriginal people but to take advice and guidance on the development of the renewable energy designs. That, of course, is a key feature in everything that we try to do as a government, not just to go and consult but to take advice, particularly for those individuals who have been living here for tens of thousands of years on this land, taking the advice that directly impacts people, particularly on their traditional lands.

Including those two forums, there was a total of 18 information sessions across the regions during that consultation phase. The figures were quite immense, from what I was reading. I think there were about 200 people at one of the major ones and then another 300 who went on to watch it online afterwards, so it was an accessible style of forum but also clearly very well attended, and the submissions were immense.

Following on from that consultation, we are able to come today with the bill, and we are able to put forward a lot of the things that were raised with us during that consultation period. The bill will seek to do the following. Firstly, it will identify priority areas on Crown land to determine where future renewable energy projects can be sustainably delivered. It will allow for the competitive allocation of licences to both Crown land and state waters. There are lots of benefits to that, but it is done in order to deliver both community and environmental benefits in conjunction with the current uses of that land.

It will allow for new licensee arrangements and impact assessments in order to enable proper regulation of the whole project, and this is a project that does require important and regular regulation. It will ensure the development is environmentally and ecologically sustainable, another key goal, of course, of everything that we do as a government. It will ensure strong and effective regulation through multiple measures, things like full cost recovery for government services as well as financial assurance requirements to ensure the rehabilitation of the land involved in that project.

It will ensure that there are multiple land use outcomes, and it will drive continued benefits for our state through not only the jobs and economic benefits but the resources themselves. Of course, there will also be continued benefits for the students in our state, perhaps the little ones who are just starting school this year who may end up in a wonderful career in hydrogen or perhaps working on the subs in some years' time. I think it is really exciting when you speak to young people to know the breadth of opportunities that we will have in South Australia for them to pursue, such a wide array of employment opportunities later in life.

As we move forward in this process, we will continue to work with stakeholders to develop the relevant regulations and also to appropriately identify the first release areas in the tender process. The bill also, as always, includes review provisions so that this can adapt as we move forward with our hydrogen plan, noting that there will be a lot of changes and things that we will learn as we go and, of course, the development of future technologies that our next generations will be building as we do so. I am very much happy today to commend the bill, as I always am when supporting jobs, economic growth, education opportunities and development in this state.

The Hon. Z.L. BETTISON (Ramsay—Minister for Tourism, Minister for Multicultural Affairs) (12:53): I rise to speak on the Hydrogen and Renewable Energy Bill 2023. Often when we arrive in this place, we deal with important pieces of legislation that are critical in managing the state, but there are also occasions when pieces of legislation can make generational change for the state's future. I wholeheartedly believe this is one of those pieces of legislation that will not just set our course to carbon neutrality but also make an economic contribution that sets us up for global leadership.

As a state, we have already led the nation, indeed the world, in the uptake of renewable energy. This was a course set by the former Rann government and later continued by the Weatherill government, which I was a proud member of and served in cabinet. The time has come to really drive home the work of previous Labor governments that indeed shifts our focus to delivering dispatchable energy created through the renewable energy pioneered by those governments. It also provides an opportunity to unlock further investments in renewable energy.

This is, of course, set by our election commitment on hydrogen, our $593 million Hydrogen Jobs Plan. During the election campaign it was clear that only one side of politics had a clear agenda on energy. What was even more clear was that there was only one side of politics that had a clear agenda on energy that was carbon neutral and had the ability to create an industry that not only benefited our state's manufacturing base but also created a world-leading industry.

The state government is unapologetic in its ambition to reach net zero by 2050. We are committed to this because it is the right thing to do. Future generations of South Australians want this and deserve to live in a future that is environmentally sustainable. Also, we do this for our farmers and our river communities because the variability of even slight temperature changes to our environment can cause significant devastation. As a state, we want to be able to produce things on the land and proudly manufacture high-quality products, but to do things the state needs energy. South Australia, like the rest of the world, wants energy, but in a decarbonised form.

As the Premier continually states, South Australia has a unique coincidence of wind and solar like no other place in the world. We are indeed in a position where we can further exploit this unique occurrence. South Australia has already made significant moves in the uptake of wind generation as well as solar generation. In fact, we have had many periods of time when the entire energy market in South Australia has been made up entirely of our own renewable energy, but this is variable and we also rely on dispatchable energy sources from within South Australia and from the national grid.

There are times when we are producing so much energy from our renewable resources that it exceeds demand and, essentially, we have to switch off that generation, and that is not an ideal situation. What this government is doing with this Hydrogen Jobs Plan is that, when renewable generation exceeds demand, we use that excess to create green hydrogen. This is the game changer for our state. We set out how we are going to do this: by building 250-megawatt electrolysers to soak excess wind and solar generation to produce this green hydrogen.

The green hydrogen we will produce will benefit our domestic needs through storage and use and even present an opportunity for exports in the future. The 200-megawatt generator we will build will allow us to use that stored green hydrogen to produce electricity when our current renewable energy capacity does not meet demand. We also believe this can help re-industrialise South Australia, something we have a great reputation for and we have been known as a state for manufacturing for a long, long time. While we still continue to do advance manufacturing, we want to be able to do that more and more into the future in a decarbonised world.

Manufacturers will also be able to use this input to create products that are more environmentally sustainable. A great example of this is the moves by GFG in Whyalla to create green steel, as they phase out their coke ovens and blast furnace by installing a $1.8 million tonne per annum direct reduction plant. This move will mean in the coming years that the plant will look to create their green steel through the use of green hydrogen.

Hydrogen will also create further opportunities to increase renewable energy generation, as now, instead of essentially turning off renewable energy production, we open the tap. The opportunity has the potential to unlock an additional $20 billion in renewable energy projects that are in the pipeline. Additional renewable capacity will help provide further feed-in for green hydrogen-producing electrolysers.

As already we are a world leader in renewable energy, this sets us up as a world leader in green hydrogen. As the Prime Minister said yesterday, by 2050 Australia's hydrogen industries are projected to generate $50 billion in gross domestic product and create more than 16,000 jobs in regional Australia. The industry is also expected to create an additional 13,000 jobs from the construction of renewable infrastructure to power the hydrogen production. This is the future and this is why we are taking strong leadership. We are positioning ourselves to be the hub of hydrogen and to export South Australian hydrogen to the world.

I am very excited for this announcement about the Bonython hydrogen hub, and this has put increased interest in investment in our state. I know that investors will see the opportunity at hand and look to exploit this. When I have represented the state overseas we know that people are wanting to have access to hydrogen and are looking at South Australia as a leader. I seek leave to continue my remarks.

Leave granted; debate adjourned.

Sitting suspended from 13:00 to 14:00.

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