According to the South Australian government, the proposed hydrogen plant in Whyalla will generate renewable energy projects worth $20 billion.
Acting Energy Minister Chris Picton responded to Opposition criticism that the plant would be a “experiment,” that its construction costs would increase, and that consumers’ electricity bills would not decrease.
He stated that the government-owned plant’s employment initiative would expedite the green hydrogen industry in South Africa, “unlock the construction of a $20 billion pipeline of renewable energy projects, and spark the creation of new jobs in supply-chain companies.”
The government said on July 25 that sixty business proposals related to the hydrogen plant had been submitted from around the world.
On the same day, Mr. Picton stated, the opposition began “scaremongering to conceal its lack of an energy policy.”
“There are no cost overruns,” he said, citing delays in certain projects under the previous liberal state administration.
This is yet another instance of Liberal opposition to hydrogen-based climate change action.
The opposition demanded that Premier Peter Malinauskas reevaluate the cost of the hydrogen plant “so that taxpayers have a clear understanding of how much they would be charged for the experimental project.”
Energy spokesman Stephen Patterson stated that the project’s costs were estimated more than a year prior.
“Labor’s original estimates cannot be believed in light of labor shortages, inflation, and substantial material price hikes,” he stated.
“It is difficult to believe that the government’s hydrogen plant would be exempt from the delays and cost overruns that have become a hallmark of its projects.
“Since the $593 million project was estimated, the construction industry has been under intense pressure and prices have risen.
“Labor has previously acknowledged that delays and disruptions to the North-South Corridor road project in Adelaide would result in astronomical cost hikes as the construction industry endures a perfect storm of labor and material shortages.”
He encouraged the Premier to “be upfront with residents and reconsider the exact cost to taxpayers of this hydrogen power project”
“If Mr. Malinauskas truly believes there will be no price increase, he must publicly assure South Australians that they will not be charged a single dollar more to make this facility a reality,” he said.
“He has already conceded that this project would not save homeowners any money on their electricity bills; the least he can do is be forthright about the cost of this experiment.”
