Funding boost to progress Port Bonython green hydrogen plans


The South Australian and federal governments have confirmed they will commit $100 million to develop infrastructure at Port Bonython in the Upper Spencer Gulf as the state government pushes ahead with plans to build a green hydrogen power station, electrolyser and storage facility at nearby Whyalla.

The proposed Port Bonython Hydrogen Hub includes a 250 MW hydrogen electrolyser facility, a 200 MW green hydrogen-fueled power station and storage capacity capable of holding 3,600 tonnes of hydrogen.

The South Australian government has previously said the initiative, which it expects will help unlock a $20 billion pipeline of renewable energy projects in the state, will be operational by December 2025.

The new grant agreement will be used to develop common-user infrastructure at Port Bonython such as upgrades to the deep-sea terminal, pipelines, storage facilities and access roads as it looks to transform the site into a multi-user export-focused precinct for green hydrogen.

South Australia Premier Peter Malinauskas said along with private sector funding, the redeveloped Port Bonython is expected to host projects worth about $13 billion and could generate up to 1.5 million tonnes of green hydrogen by 2030.

“Our state is blessed with the key ingredients the world needs to decarbonise international economies – abundant coincident wind and solar resources, critical minerals, strong renewable energy penetration, and well-developed industrial hubs,” he said.

“We’re working closely with industry to maximise this opportunity to grow a new industry, which has potential to create thousands of jobs and improve the standard of living for South Australians for generations to come.”

The federal government has projected that by 2050 Australia’s hydrogen industry could generate $50 billion in additional GDP and create more than 16,000 jobs in regional Australia. The industry is also expected to create an additional 13,000 jobs from the construction of renewable energy infrastructure to power the hydrogen production.

Prime Minister Anthony Albanese said this new funding commitment is all about making Australia a global leader in green hydrogen, as competition for clean energy investment accelerates around the world.

“The global shift to clean energy and decarbonised economies is a huge economic opportunity for Australia,” he said. “We are determined to grasp this opportunity.”

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