Whyalla, South Australia, is poised to become a global leader in the hydrogen industry.
With the approval of South Australian budget money for a new generating facility, Whyalla would become a global leader in the production of hydrogen for electricity and export, according to local officials.
In its budget, the state government affirmed that a 250-megawatt hydrogen electrolyzer, a 200-megawatt hydrogen power station, and a 3600-tonne hydrogen storage facility will be built in the Whyalla region.
The enhancements will cost $593 million, with financing details revealed after prominent individuals in the hydrogen business met in Adelaide this week to discuss advances and prospects for the industry to grow.
Representatives from Santos, Fortescue Future Industries, Origin Energy, Chiyoda, ENEOS Australia, Mitsubishi Australia, and AMP Energy visited Whyalla following the conference, seeing the city and the Port Bonython hydrogen hub district.
Mayor Clare McLaughlin expressed confidence in the region’s ability to support future green hydrogen generation, usage, and export.
She stated that establishing a hydrogen capacity will assist in the decarbonization of local heavy industries as well as the worldwide transition to a low-carbon future.
Thousands of new employment would be created in the region as a result of government and private sector growth in the future years.
“These projects will give our economy much-needed diversification, boost our population, and establish us as a global leader in hydrogen production and export,” Ms. McLaughlin said.
Treasurer Stephen Mullighan said it was critical to retain funding for infrastructure programs that promote long-term, sustainable economic growth in his budget statement on Thursday.
“South Australia is at the vanguard of energy transformation while the nation confronts skyrocketing wholesale power costs, driven primarily by soaring coal prices and the failure of national energy policy over the previous decade,” he said.
“With our hydrogen employment plan, a Labor administration prepares to take the next nation-leading step in guaranteeing our energy future, one powered by cheap, green, and dispatchable electricity.”
As part of a $140 million cooperation between the federal government and private business, the budget included an additional $30 million to develop the Port Bonython infrastructure.
The Australian Hydrogen Council Chief Executive Fiona Simon appealed for policy clarity from the Commonwealth in addition to funding from both levels of government.
Dr. Simon believes the government should act quickly to establish a hydrogen market.
“The new energy world’s gaze is set on Australia. “Our trading partners are keeping a careful eye on how we build this market,” she explained.
“However, the hydrogen economy cannot rely solely on market forces to promote decarbonization.” To get this market to size, we need policy clarity and cooperation.
“Market mechanisms to value carbon emissions, clean energy, and fuel standards, taxation assistance for research and development, new investment, and planned transition dates” are some of the possibilities.
According to Dr. Simon, pressure was building as the impacts of climate change became more apparent, and energy security remained a top priority throughout the world.
“Now is the moment to act,” she remarked.
