The South Australian government has followed up the recent launch of its Hydrogen Export Prospectus with a promise to provide US$27 million in funding for export infrastructure upgrades to a new green hydrogen and green ammonia project.
The South Australian government aims to become Australia’s national export hub for green hydrogen, with newly announced plans to provide AUD 37 million (US$27 million) in state funding for upgrades to the AUD 240 million Eyre Peninsula Gateway Hydrogen Project, which features a 75 MW electrolysis plant.
The funds will be used for upgrades to the Port Bonython jetty. South Australia Premier Steven Marshall said the upgrades will be key to the state’s “ambitious plans to become an exporter of green energy to world markets.” Hydrogen Utility (H2U) is developing the project, which will be the first of what the company says will be several green hydrogen and green ammonia projects. Green ammonia is a derivative of green hydrogen.
The announcement comes less than a week since the South Australia government launched its Hydrogen Export Prospectus. It identified a number of green hydrogen hubs (including Port Bonython), each of which would at least double the current installed capacity of solar and wind farms in South Australia. The H2U project will be developed in two stages.
Multiple stages
The first stage of the project integrates the 75 MW electrolysis plant with 120 tons per day of ammonia production. The combination of the two will produce an estimated 40,000 tons of green ammonia per year for the domestic market and provide trial export shipments of green hydrogen and green ammonia to Japan and “other North Asian economies.”
The state government’s Renewable Technology Fund has already provided the Demonstrator Stage with a AUD 4.7 million grant and a AUD 47.5 million loan. The project's Front-end Engineering and Design (FEED) Study is set to start in December.
H2U Executive Director Tristram Travers told the Australian Financial Review that the project “will be the first, export-oriented green hydrogen and ammonia manufacturing facility utilising 100% renewable energy and a significant step towards meeting the needs of these emerging markets.”
The Climate Council has welcomed the announcement of the AUD 240 million green hydrogen project, saying that South Australia is indisputably the global leader.
“This is fantastic news. South Australia’s plan to produce and export renewable hydrogen will have many benefits;” said Climate Council CEO Amanda McKenzie. “It will create jobs for Australians, build a future export industry and tackle climate change, all at the same time.”
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