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South Australia government backs $250 million green hydrogen project

November 06, 2020

Renew Economy:

The South Australian government has backed a massive $250 million project to kick-start Australian green hydrogen exports, with Australia’s largest electrolyser project set to supply new green ammonia production.

The first ‘demonstrator’ stage of the H2U Eyre Peninsula Gateway Hydrogen Project will see the construction of a 75MW electrolyser plant in Whyalla, set to be Australia’s largest green electrolyser built to date, which will supply hydrogen for the production of an estimated 40,000 tonnes ammonia annually, and will target export markets.

The company said the 75MW electrolyser would be part of the first stage of the company’s planned investments, and the project will be later expanded to boost output by as much as 20-fold, with the aim of further boosting the supply of green ammonia into the Asian region.

The project has been supported by a $4.7 million grant and a $7.5 million loan from the South Australian government, under its Renewable Technology Fund. The project had originally been slated for construction near Port Lincoln, but the project opted to shift the project closer to Whyalla, to be closer to a key industrial and export hub.

South Australian energy minister Dan van Holst Pellekaan said the project would be able to take advantage of South Australia’s growing supplies of renewable electricity, which will ensure the facility will be able to produce emissions free hydrogen.

Ammonia has been identified as a key early industry for green hydrogen production in Australia, as it can provide an early source of demand while the international market for hydrogen for use in energy storage and transport continues to develop. The vast bulk of hydrogen produced globally is used in chemical production like ammonia for fertilisers.

[Michael Mazengarb]

More: South Australia backs $250m green hydrogen project to kick start exports

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