The state government of South Australia (SA) and Swiss commodities trading business Trafigura will invest in the development of a 440 megawatt (MW) hydrogen plant.

The proposed facility, which is projected to cost A$750 million (US$536 million), is expected to be connected with the Nyrstar smelter in Port Pirie. According to a statement from the South African state government, the SA government and Trafigura have each committed A$2.5 million to a front end engineering design (FEED) study.

By the end of 2022, a final investment decision will be taken. Trafigura stated that once permitted, building will begin in 2023.

The proposed project is divided into two stages. The first stage would involve the building of an 85MW electrolyser for the production of hydrogen and oxygen by water splitting using renewable energy. The hydrogen would be turned to ammonia for export and use in maritime and domestic transport, as well as to support the Port Pirie Industrial Precinct, while the oxygen would be used to meet 20% of the smelter’s needs.

In the second stage, a 440MW electrolyser would be constructed. This larger electrolyser would meet the smelter’s total oxygen requirement, create significant quantities of ammonia for export, and ensure supply to the domestic market. The full-scale plant would have a daily capacity of 100 tonnes, which would also assist meet domestic demand.

Trafigura would provide the plant with renewable energy. The project joins a growing list of hydrogen-related initiatives in South Australia.