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Legislative Council - Fifty-Fourth Parliament, Second Session (54-2)
2021-10-28 Daily Xml
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Hydrogen Production

The Hon. J.A. DARLEY (14:36): My questions are to the Treasurer, representing the Minister for Energy and Mining, on hydrogen production.

1. How and when will the ambition announced recently of a 10 per cent blend of renewable hydrogen gas into the natural gas network be achieved from the present step of a 5 per cent blend achieved for only 700 customers from Hydrogen Park?

2. How does the technology of renewable hydrogen gas, created from using renewable electricity to split water into hydrogen and oxygen through the 1.25 megawatt electrolyser, fit with South Australia's Hydrogen Action Plan of some 20 actions to scale up renewable hydrogen production for export and domestic consumption?

3. How does the provision of state-owned land at Port Bonython in the Upper Spencer Gulf, with deepwater access and capacity, previously announced, lead to a hydrogen export hub?

4. How will the development of South Australia's Hydrogen Export Modelling Tool be used by companies to model the cost of producing and exporting hydrogen from South Australia, or is there a fair amount of pie-in-the-sky hope and hot air that with land provided, they, the international companies, will come and invest?

The Hon. R.I. LUCAS (Treasurer) (14:37): I am happy to refer the bulk of those questions to my colleague and bring back a reply. What I can provide some detail on, and we referred to it briefly this morning in the earlier debate today, is that the government is likely to be in a position in the next few weeks to provide a public update in terms of the expression of interest process at Port Bonython about updating the public in relation to the level of interest that the government has received in that particular process.

As I have said publicly, we have had a considerable degree of interest from national and international companies in relation to this particular proposal. The proposal is very much about the option of developing a hydrogen hub there. The proposal currently is looking at a range of opportunities which might be involved in that particular precinct. It has the attraction of being very close and connectable to large quantities of renewable energy, which is a critical element of any development of a hydrogen hub. It also has the advantage of being close to a wharf and a deep sea port—again, all critical issues in relation to the development of a hydrogen hub.

It has a lot of natural advantages, which is one of the reasons why the government has gone to market to look at expressions of interest. The fact that we have been overwhelmed by the significant degree of interest I think indicates that the market, more importantly than the government, is actually recognising (a) the importance of what we are talking about, and (b) the opportunities that present in terms of the development of a hydrogen industry in the Port Bonython precinct.

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