World-leading $240 million hydrogen project launch

05 Nov 2020

South Australia’s intention to create a green hydrogen export industry has taken a big step forward, with the launch today of a world-leading $240 million hydrogen project. This project would be the largest green ammonia plant in the world, being sixty times larger than Australia’s largest electrolyser at Tonsley in Adelaide.

To support the export potential of South Australia, the Marshall Liberal Government is allocating $37 million in the upcoming 2020/21 State Budget, to upgrade the Port Bonython jetty as part of our ambitious plans to become an exporter of green energy to world markets.

Premier Steven Marshall said upgrading the jetty will unlock significant investment and export opportunities for South Australia, with hydrogen driving renewed interest in Port Bonython.

“South Australia’s ambition to create, use and export green hydrogen is getting global attention, and has great potential to create jobs and sustain long-term investment,” said the Premier.

“Maintaining this critical piece of infrastructure will unlock further export opportunities in key markets, particularly across Asia, boosting economic activity and creating jobs in our state.

“My Government has also been working to assist Australian company H2U to establish connections with potential international customers, and their hydrogen project at Pt Bonython is a very exciting one for South Australia.

“The $240 million demonstrator phase of the project is of global significance, but it is just the precursor to a much larger production and export facility, that could see us also strengthen our energy ties with traditional trading partners.

“This comes at the perfect time, as we lead our economic recovery from the global coronavirus pandemic.”

The initial stage of the $240 million H2U Eyre Peninsula Gateway Hydrogen Project will see the installation of a 75MW electrolyser near Whyalla, capable of producing enough hydrogen to create 40,000 tonnes of ammonia each year.

This would be the largest green ammonia plant in the world and is targeting completion in late 2022.

The Minister for Energy and Mining Dan van Holst Pellekaan congratulated H2U on the project and committed to helping fast-track the project’s development.

“Our intention of net-100% renewable energy generation by 2030 will produce some of the most cost-effective green hydrogen in the world.”

The Minister for Trade and Investment Stephen Patterson welcomed the announcement of this expanded Project, which came a week after the release of the state’s Hydrogen Prospectus, which is a key action in the SA Hydrogen Action Plan.

“South Australia has big hydrogen ambitions as we aim to be a national and international exporter of clean power, and this internationally significant project in the Eyre Peninsula will see our state take the lead on the deployment of clean, green hydrogen,” he said.

“Japan in particular has identified green ammonia as a key fuel to reduce their carbon emissions and fuel their economy, and we are keen to contribute to that.”

Chief Executive Officer of H2U, Dr. Attilio Pigneri said: “This project will help drive the development of the emerging markets for green hydrogen and green ammonia and offers the opportunity to export South Australia’s abundant solar and wind resources to support deep decarbonisation in the global energy, industrial and shipping sectors.

“In the energy sector, Japan is leading the way with their plan to introduce green ammonia as a substitute fuel, to help meet its decarbonisation targets,” he said.