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Legislative Council - Fifty-Fifth Parliament, First Session (55-1)
2024-11-28 Daily Xml
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Hydrogen Production

The Hon. S.L. GAME (14:54): I seek leave to make a brief explanation before asking a question of the Hon. Clare Scriven, representing the Minister for Energy, Infrastructure and Mining, regarding South Australia's hydrogen plant.

Leave granted.

The Hon. S.L. GAME: When announcing plans for its green hydrogen power plant, the Labor Party said it would cost taxpayers $593 million, broken down into $220 million for the electrolyser, $342 million for the power station and $31 million for the hydrogen storage facility. Claims of a cost blowout for the hydrogen project were recently reported in The Advertiser, while the Grattan Institute said, 'Many green projects were turning out to be expensive.'

Stakeholders have since contacted my office expressing their concerns about whether that $593 million figure will be accurate or way off the mark. My questions to the minister are:

1. Given the recent history of state government projects coming in over budget and the likelihood of the union movement pushing costs even higher between now and whenever the hydrogen plant is completed, can the government guarantee that its green hydrogen project will be delivered on or even near budget?

2. If not, how much extra will taxpayers be expected to cough up?

3. Does the government believe that those funding this green experiment, the state's taxpayers, deserve to be presented with a business case for this project, and when will that be made available?

4. If the government doesn't believe taxpayers deserve that, why not?

The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries) (14:56): I am advised by the minister in the other place of various pieces of information relevant to the honourable member's question, for which I thank her. Our government remains committed to developing a renewable hydrogen industry in the Upper Spencer Gulf, capitalising on the region's natural resources and extensive renewable energy.

Government support for projects such as the Hydrogen Jobs Plan is critical to growing an emergent industry and bringing investment to our state, as we saw with the big battery at Hornsdale. We are aware that some private companies have decided to step back from their hydrogen plans, but these companies have different strategic priorities and constraints. Our vision is long term and our investment is targeted to kickstart an industry that will grow our economy, create jobs, stabilise our grid and decarbonise industry.

We are conducting a rigorous procurement process to make sure we get the best value for South Australians. I am advised there remains a huge array of hydrogen projects in the pipeline in South Australia. There are a number, of which I am sure members may be aware, that demonstrate the growth of the hydrogen industry and the scale of investment across the state. We are committed to continuing to support this growing sector.

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