South Australian Government Hydrogen Facility
South Australian Government Hydrogen Facility
The South Australian Government has committed AUD$593 million in capital funding for the development of a hydrogen production, generation and storage facility in the Whyalla local government area.
| Main proponents:
The Office of Hydrogen Power South Australia has been established to oversee initial implementation phases. A new South Australian government business enterprise will be established to own and operate the plant once built. |
Main end-use classification:
Power use |
Status:
Under development |
Estimated cost:
AUD$593 million – project estimate |
| Other involvement:
|
Production details:
250 MWe electrolyser capacity |
Location:
South Australia, Australia |
Announced funding:
Project funding included in the South Australian 2022-23 budget |
Project description
In June 2022, in the 2022-23 State Budget, a ‘Hydrogen Jobs Plan’ was announced with AUD$593 million allocated over four years for the establishment of a new hydrogen facility including electrolysers, hydrogen-fuelled power generation and hydrogen storage capacity in the Whyalla region.
The project targets delivery of 250 MWe of electrolyser capacity, 200 MW of hydrogen-fuelled power generation and hydrogen storage infrastructure.
The generator will enhance system security by providing South Australia with a source of dispatchable renewable energy and the electrolyser will operate as a flexible load to manage excess renewable energy in the system.
A six-week market sounding process was conducted mid-2022 to help inform the design and delivery concepts for the construction of the hydrogen facility.
In December 2022, the South Australian Government released an international Request for Proposals which invited industry participants to help deliver the hydrogen power plant, hydrogen production and storage facilities for the project. The call for proposals focused on the supply, construction and operation of the hydrogen power plant and equipment – including electrolysers, power generation and storage infrastructure – as well as options to purchase green hydrogen produced at the facility. The Request for Proposals closed on 14 March 2023.
In March 2023, the South Australian Government announced that a total of 29 proposals to help implement the project were received through the call for proposals, to be followed by a detailed evaluation process with a view to awarding contracts early in the second half of 2023.
In October 2023, a consortium comprising ATCO Australia and BOC was announced as the preferred hydrogen delivery partner, with the consortium having committed to an Early Contractor Involvement (ECI) agreement with the State Government which would progress detailed project and engineering design, procurement of critical equipment, finalise contracting arrangements, and cost estimations. It was also announced that the Government has entered an ECI agreement with South Australian energy infrastructure company EPIC Energy to develop an integrated pipeline and hydrogen storage solution.
The hydrogen facility is expected to be operational in early 2026.
Updated: October 2023