The Hydrogen Jobs Plan will see the construction of a world-leading hydrogen power station, electrolyser and storage facility within the Whyalla City Council.
The Plan will deliver significant benefits for South Australia, including:
- lower electricity prices for business and industry
- thousands of new jobs for South Australians; and
- unlocking the development of a $20 billion pipeline of renewable energy projects.
Hydrogen Power South Australia, a new government enterprise will be established to own and operate the hydrogen power plant.
The Office of Hydrogen Power South Australia (OHPSA) has been set up as an interim body that will oversee the initial implementation process for delivering the Hydrogen Jobs Plan. Sam Crafter has been appointed as Chief Executive Officer.
The Hydrogen Jobs Plan targets the construction of:
- 250 MWe of electrolysers
- 200 MW of power generation (powered by the electrolysers)
- Hydrogen storage for 3,600 tonnes of hydrogen, or the equivalent of two months of hydrogen consumption for power generation.
Once built, the operation of the electrolysers during the middle of the day will provide additional grid stability, by 'soaking up' the state's abundant renewable energy generated from large-scale wind and solar farms.
This additional demand on the electricity network will minimise the need for household solar panels to be switched off by energy providers during periods of excess renewable energy production.
Hydrogen Power South Australia will offer 'firming services' to renewable generation facilities (such as wind and solar farms) located in South Australia, using a contract structure that will ensure the reduced firming costs are passed onto South Australian energy users.
The $593 million hydrogen facility is expected to be operational by the end of 2025.
An expert panel has been established to identify the most appropriate parcel(s) of land on which to build the facilities.
Market sounding process
OHPSA is undertaking a market sounding process which will inform the final design and implementation of the project, including future procurements.
Calls for proposals closed on 15 July 2022, and the assessment of proposals is underway.
Local, national and international organisations were invited to provide technical, system and commercial approaches – including designs and delivery concepts.
More than 60 proposals were received from organisations with experience developing green hydrogen infrastructure in other jurisdictions; large scale renewable energy developers; companies with links to local industry and local workforces; to organisations that partner with universities for research, training, and development.
The market sounding process will provide valuable information to inform future procurements and the final site selection for the project.
For more information and general enquiries email OHPSA.Enquiries@sa.gov.au