Delivery partners announced for SA Hydrogen Jobs Plan

South Australia’s Hydrogen Jobs Plan is a step closer to construction and creating jobs as the State Government appoints its preferred delivery partners. 

The consortium between ATCO Australia and BOC – a Linde company – has been named as the preferred delivery partner for the project that will deliver what will be the world’s largest hydrogen production facility along with a new power plant and storage facility at Whyalla in the Upper Spencer Gulf. 

“This is a world-leading opportunity for South Australia, that has the potential to rival Victoria’s gold rush, the coal boom in Queensland, or Western Australia’s development of iron ore and gas. 

“We have all the things the world will need to decarbonise – abundant copper and magnetite, the world’s best coincident wind and solar resources, world-leading renewable energy penetration and soon, the ability to harness this abundant clean energy in the form of hydrogen. 

“We can use this clean hydrogen to firm our electricity grid, but more than that, we can use it to help reindustrialise the Upper Spencer Gulf, creating thousands of jobs in the process,” Premier Peter Malinauskas said. 

The consortium has signed an Early Contractor Involvement (ECI) agreement with the South Australian Government, which will enable the proponent to carry out detailed project and engineering design, procurement of critical equipment, finalise contracting arrangements, and cost estimations. 

South Australian energy infrastructure company EPIC Energy has also signed an ECI agreement for the development of an integrated pipeline and hydrogen storage solution. 

The signing of the two ECI agreements follows a detailed six-month evaluation assessment process that saw 29 proposal submissions from companies worldwide. 

Th proposal from the ATCO and BOC consortium stood out with an end-to-end solution encompassing design and build experience in electrolysers, generators, on-site storage, and operational expertise. 

“ATCO is delighted to be selected as a consortium partner for the design of the world’s biggest hydrogen plant that will unlock decarbonisation opportunities and enhance prosperity for generations,” ATCO Australia CEO and Country Chair John Ivulich said. 

“We are proud to expand out contribution to the region and look forward to progressing work with the South Australian Government, stakeholders and the local community,” Head of BOC Theo Martin said. 

“EPIC Energy brings more than 50 years of experience in supplying South Australian industry and the community with energy pipeline and storage solutions, and we’re looking forward to playing a role in bringing to life this world-leading decarbonisation opportunity,” EPIC Energy Chief Executive Officer Clive D’Cruz said. 

The proposed Hydrogen Jobs Plan will include the delivery of a 250MW electrolyser that is set to become one of the world’s largest as well as a 200MW renewable hydrogen power plant that will be the new source of flexible power. 

The associated storage facility will store hydrogen that will be used for the power plant and by the local industry who is looking to transition to net-zero production methods. 

All three infrastructures will be located approximately nine kilometres north of Whyalla City Centre. The State Government has worked closely with the Whyalla City Council and the Traditional Owners’ representatives, the Barngarla Determination Aboriginal Corporation, to secure land options for the project. 

Construction of the electrolyser, power plant and storage facility are due to commence in 2024 and completed in late 2025, with the project operational by early 2026. 

“For two decades, South Australia has shone bright in the race to 100% net zero, thanks in part to our exceptional sun and wind resources to generate renewable power. 

“The Hydrogen Power Plant in Whyalla continues this momentum, and out world leadership in using hydrogen for renewable energy storage, and enabling us to ship the sun beyond our shores,” Minister Tom Koutsantonis said. 

The Hydrogen Jobs Plan aims to: 

• Provide jobs for South Australians 
• Enhance South Australia’s grid security, through new dispatch generation 
• Prove large-scale hydrogen production and generation technology 
• Help unlock pipelines of renewable energy developments and business opportunities 
• Activate other hydrogen projects in development, including export0focused projects 
• Support South Australia’s continued clean energy transition and decarbonisation 

The Government of South Australia has committed $593 million towards the Hydrogen Jobs Plan which will help re-industrialise the Upper Spencer Gulf region through clean energy while also solidifying the State’s position as a global hydrogen powerhouse. 

The Hydrogen Jobs Plan is estimated to create about 1,000 jobs during its construction and a further 95 ongoing jobs once operational. The ATCO and BOC consortium will be completing a personnel and accommodation study to confirm workforce numbers as well as peak construction periods and accommodation requirements for the region. 

“This is an investment which will transform the future of the Upper Spencer Gulf, and secure long term productive job opportunities for Whyalla and beyond. 

“We have an opportunity to grow our reputation as a global renewable energy powerhouse. 

“But more than that, we can use this clean energy to produce green iron and steel, providing the world with the essential building blocks needed to decarbonise,” Member for Giles Eddie Hughes said. 

Source: Government of South Australia – Media Releases; Office of Hydrogen Power South Australia (1, 2, 3, 4); Utility Magazine