$100m funding committed for Port Bonython Hydrogen Hub development

South Australia is set to welcome its first large-scale export terminal for green and blue hydrogen following the finalisation of a grant agreement between the Australian and South Australian Governments to develop the Port Bonython Hydrogen Hub. 

The two governments are jointly investing $100 million to build the export infrastructure at Port Bonython and prepare it to become the State’s first hydrogen export terminal of this scale. 

“We’re working with the Malinauskas Government to develop the Port Bonython Hydrogen Hub, which will support regional jobs and take us a step closer to becoming a renewable energy superpower. 

“The global shift to clean energy and decarbonised economies is a huge economic opportunity for Australia. 

“We are determined to grasp this opportunity and are investing half a billion dollars into regional hydrogen hubs all around Australia,” Prime Minister Anthony Albanese said. 

On top of the $100 million from both governments, the industry is investing a further $40 million to develop common user infrastructure including upgrades to the port, common user last mile pipelines, storage and access roads. 

The project is located about 16 kilometres from Whyalla in the Upper Spencer Gulf. The port has an existing deep-water liquid hydrocarbon export terminal as well as 1,700 hectares of developable land, world-class wind and solar resources, and gas reserves located nearby. 

“Investing in an Australian green hydrogen industry puts us on a path to become a renewable superpower. 

“Green hydrogen will play a crucial role in our clean energy transformation and will create jobs and spur investment in regional Australia,” Minister for Climate Change and Energy Chris Bowen said. 

In addition to private sector funding, the redeveloped Port Bonython is anticipated to host several projects with a total worth of $13 billion and it is also expected to generate up to 1.8 million tonnes of hydrogen by 2030. 

There are currently seven shortlisted projects for the hub, with companies involved include: 

• AMP Energy 
• Fortescue Future Industries 
• H2U 
• Neoen/ENEOS Australia 
• Neoen/Chiyoda/Mitsubishi Australia 
• Origin Energy 
• Santos 

South Australia is well positioned to become a world-class, low-cost hydrogen supplier, backed by its expanses of available land and abundant solar and wind resources. The State Government is supporting this through a comprehensive plan to develop a hydrogen industry in the Spencer Gulf, including through its Hydrogen Jobs Plan, that will involve the development of a hydrogen electrolyser, power station and storage facility. 

“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. 

“Through our Hydrogen Jobs Plan, my Government is seizing the mantle to produce a world leading hydrogen electrolyser, power plant and storage facility. 

“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,” Premier Peter Malinauskas said. 

The Australian Government will consider the requirements to facilitate hydrogen supply chains through the Net Zero Economy Agency and review of the National Hydrogen Strategy. 

The Australian Government’s vision is to build a clean, innovative, safe and competitive hydrogen industry that will benefit all Australians. 

The recent Commonwealth Budget has allocated $2 billion for a new Hydrogen Headstart program that will scale up the development of Australia’s renewable hydrogen industry. This critical investment is projected to make Australia a global leader in green hydrogen as competition for clean energy investment accelerates around the globe. 

“As the world seeks to decarbonise, hydrogen is emerging as a key commodity for reindustrialisation. 

“The Malinauskas Government has recognised this and we are investing in our Hydrogen Jobs Plan for the future. 

“Renewable hydrogen can be used as a reduction gas to decarbonise South Australia’s iron industry – helping fortify our industrial capacity for a zero-carbon future,” Minister for Energy and Mining Tom Koutsantonis said. 

The nation’s hydrogen industry is anticipated to generate $50 billion in additional GDP by 2050 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 that will power hydrogen production. 

Source: Government of South Australia – Media Releases; Government of South Australia – Energy & Mining; Hydrogen South Australia; Prime Minister of Australia; ABC News; Renew Economy