Media Release by Office of Hydrogen Power South Australia
The South Australian government has released an international Request for Proposal (RfP) seeking industry partners to help deliver its hydrogen power plant, hydrogen production and storage facilities – with the RfP incorporating agreements for exclusivity over parcels of strategically-located land in Whyalla.
The request seeks proposals from industry to help deliver a 250-megawatt hydrogen production facility, 200-megawatt hydrogen power plant and fit for purpose hydrogen storage infrastructure in the Whyalla area by December 2025.
The call for proposal focuses on the supply, construction and operation of the hydrogen plant and equipment as well as seeking interest in purchasing green hydrogen produced at the facility.
The Government, through the Office of Hydrogen Power SA, has worked with the Traditional Owners of the region, the Barngarla Determination Aboriginal Corporation, and the Whyalla City Council to secure land options for the delivery of the project.
The identified sites are located within a 15 km radius to the north-east of the city of Whyalla, close to critical infrastructure, transport nodes, and existing and planned economic development.
Sites include a substantial parcel of land in the Whyalla Industrial Estate and 8.7 hectares located at the intersection of Port Bonython Road and the Lincoln Highway in the Cultana Industrial Estate – the preferred sites for the location of the hydrogen production facility and hydrogen power station respectively. There is also potential for site connection through a dedicated hydrogen pipeline, providing both hydrogen storage and direct supply connection.
A third site adjacent the Cultana Industrial Estate provides opportunity for power generation and other infrastructure for the project.
The scale of the sites caters for potential future expansion of the scope and size of operations over time, along with potential future partnering options and flexible site design.
The land is also adjacent to key electrical infrastructure and distant from communities, reducing noise concerns.
By already securing exclusivity over land options, the Government can expedite the design process and de-risk the project by ensuring that appropriate land is available on time.
However, proponents may also propose alternative sites that can support the construction of the project by December 2025.
The RfP encourages collaboration with industry partners – including those already developing hydrogen facilities in South Australia – to maximise investment, create local and flow-on jobs, build industry capability and allow the delivery of additional green hydrogen production for both domestic use and export.
Industry proposals beyond the defined scope will be assessed on merit, which includes the ability to deliver by December 2025.
Interested respondents are encouraged to register and download the Hydrogen Jobs Plan RfP from the South Australian Tenders and Contracts website
South Australia is already a leader in renewable energy transformation, placing our state in a strong position to become a global leader in green hydrogen for the long-term future.
In 2022, South Australia has generated 69 per cent of its energy from renewable resources.
The green hydrogen power facility will be the first of its kind in Australia as it drives production for a rapidly decarbonising global market.
It will encourage further development of green hydrogen opportunities here in South Australia, drawing on the state’s advantage through abundant renewable energy.
The green hydrogen power facility will be the first of its kind in Australia as it drives production for a rapidly decarbonising global market.
It will encourage further development of green hydrogen opportunities here in South Australia, drawing on the state’s advantage through abundant renewable energy.
The request for proposal opens on Friday 16 December 2022 and runs until 21 February 2023, with contracts expected to be awarded in July 2023.
Quotes attributable to Energy and Mining Minister Tom Koutsantonis
As the world looks to decarbonise, South Australia is making a once-in-a-generation investment in green hydrogen – an investment that places the Upper Spencer Gulf region at the epicentre of a renewable energy revolution.
Local power, local jobs, global exports, global leadership – we will seize this opportunity to transform not just the energy sector but potentially the state’s economic future.
Our state is globally recognised as a leader in renewable energy generation, and our coincident wind and solar is our prime advantage, making us perfectly positioned to become a word leader in green hydrogen production, storage and export.
The Hydrogen Power Plant will play a major role in unlocking South Australia as a substantial global player in green hydrogen production and give the state an early advantage in attracting associated supply chain jobs, ongoing maintenance and potentially manufacturing.
Quotes attributed to the OHPSA Chief Executive Officer Sam Crafter
“True collaboration between state government, local government and traditional owners will unlock growth and benefits for the whole community.
“Our first mover advantage sets the scene for us to work with industry experts from across the globe, attract and develop hydrogen supply chain, ongoing maintenance and potentially manufacturing, and new export industry opportunities.
“The world is looking to us for a great example of government and community working together to create an outcome that will benefit the Spencer Gulf Region and South Australia lasting generations into the future.
“The Upper Spencer Gulf region is at the epicentre of this once-in-a-generation investment in green hydrogen to accelerate a new economy using our state’s advantage – abundant renewable energy.
Quotes attributable to Member for Giles Eddie Hughes
Through the Hydrogen Jobs Plan, the Upper Spencer Gulf region can aim to become a net zero emissions industrial and manufacturing powerhouse with global recognition.
This project is a true example of collaboration between state government, local government and traditional owners working together towards an outcome for the region to benefit the whole community through local and flow-on jobs, industry growth and a thriving economy.
Quotes attributable to Mayor Phill Stone, Whyalla City Council
We are incredibly excited that Whyalla has been chosen as the home for this monumental project, demonstrating our unique capabilities in terms of transport and electricity infrastructure; appropriately zoned land; local skills base; and available renewable resources.
Council has now made the land available for the project which, combined with this call for proposals, enables this project to become a reality within several years.
The rapid progress the State Government is making with this project highlights our collective commitment to deliver a project that will see Whyalla transition into a focal point of the global green hydrogen and decarbonisation evolution – putting us on the map for all the right reasons.
Quotes attributable to Barngarla Determination Aboriginal Corporation Chair Jason Bilney
The Barngarla Aboriginal Determination Corporation (BDAC) and the South Australian Government have worked together to reach an agreement that will see Barngarla Native Title holders of this area share in the economic benefits being created through the Hydrogen Jobs Plan.
As the First Nations’ People and Native Title Holders for the area, it is important for industry and Government to recognise that they are building this project on our Country and in areas where we have significant property rights.
The Memorandum of Agreement, that was signed this week between BDAC and the State Government, demonstrates a mutual respect and commitment to continue to work together to develop this important and innovative project for our state.
Barngarla are proud of this agreement with State Government and our continued work leading the way to ensure that First Nations People get a real stake in the renewable energy revolution currently taking place.
