Port Bonython Hydrogen Hub
Overview
The conurbation of Whyalla and Port Bonython presents considerable development opportunities for hydrogen-related activities. Whyalla is a town located in the Eyre Peninsula region of South Australia and, as well as being the largest population centre in the Spencer Gulf, is one of South Australia’s largest regional cities. Port Bonython is located approximately 16 kilometres from Whyalla along the Upper Spencer Gulf and is being developed as a hydrogen hub to support prospective hydrogen-related projects.
Port Bonython has access to an existing deep-water port that facilitates the large-scale export of liquid hydrocarbon products from the Cooper Basin oil fields, as well as access to over 2,000 hectares of developable land and considerable wind and solar resources.
In May 2021, the Government of South Australia called for Expressions of Interest to develop land around Port Bonython to create a multi-user industrial and export facility, and support Government efforts in the development of a hydrogen hub at the site. In February 2024, the South Australian Government announced that it had signed Development Agreements with five Port Bonython Hydrogen Hub partners (Amp Energy, Fortescue Energy, H2U, Origin Energy and Santos). The Development Agreements are designed to provide a clear pathway for developers to secure a long-term lease on land at Port Bonython. The announced developers will progress feasibility studies and early design works for their proposed hydrogen projects.
As these proposed hydrogen projects are matured, they will be included in the HyResource Projects – Active listing.
A master planning process with project partners is underway and is designed to support the development of common user infrastructure solutions, such as pipelines, tank storage, marine export infrastructure and precinct enabling infrastructure. The planning process has prioritised engineering and commercial investigations towards determining the future use of the Port Bonython Jetty in enabling hydrogen export.
Three Port Bonython Hydrogen Hub developers – Amp Energy, Fortescue Energy and H2U – are collaborating with the Office of Hydrogen Power SA as project partners to deliver common user infrastructure and plans at the hub, and to advance critical environmental assessments.
The Office of Hydrogen Power SA and the Port Bonython Hydrogen Hub Project Partners have established a Development Committee and several working groups covering key areas such as the Port Bonython Jetty, power transmission, water supply and environmental considerations.
The Government has engaged a Design and Development advisor to assist with planning the establishment of the hub.
Funding
The Australian Federal Government, through the Regional Hydrogen Hubs Program – Hubs Implementation funding stream, is providing up to AUD$70 million in funding support to the South Australian Government’s Port Bonython Hydrogen Hub initiative. This grant would be matched by the South Australian Government providing AUD$30 million towards the development of a hydrogen hub at Port Bonython, with a further AUD$40 million expected to be contributed by project partner developers.
In September 2023, in a joint release, the Australian and South Australian Governments announced they had finalised a grant agreement to develop the Port Bonython Hydrogen Hub. The release noted that both governments are investing AUD$100 million to develop infrastructure at Port Bonython.
Separately, the Government of South Australia has allocated AUD$32.7 million for general maintenance activities on the Port Bonython jetty, including refurbishment of key structural elements and other works to extend operational life. Additional funding is to be made available for augmentation of the Port Bonython jetty.
Projects
HyResource listed projects in the Port Bonython/Whyalla region target ammonia use and power generation.
Updated: February 2024