Australia’s biggest hydrogen project wins federal green tick

Whyalla’s reincarnation as a green energy hub is inching ever closer, after the South Australian government ambitious renewable hydrogen plans for the steel city obtained their federal environmental approvals.

Australia’s green hydrogen industry is hitting multiple hurdles over cost and the lack of customers, but one that is forging ahead is the South Australia plan to build a world-leading (in terms of size) 200 MW hydrogen-fuelled power station, backed by a 250 MW electrolyser and associated storage facilities.

The power station and the electrolyser are among the biggest, if not the biggest of their type in the world, and together make the biggest hydrogen project commitment in Australia, and with an ambitious timeline of delivering it by early 2026.

The $593 million project must meet conditions, however, with the EPBC requiring it to protect Western Grasswren habitat and the most onerous requirement is the developer is not allowed to clear any habitat in the Gawler Ranges during the breeding season.

The project is designed as a solar soak in the state with already the highest share of renewables, and rooftop solar, in the world.

White it could operate 24 hours a day, the electrolyser will most likely click in during daylight hours to turn up the huge amounts of excess solar and wind energy into hydrogen. 

Because it has demand flexibility, the electrolyser will be able to adjust its charging times. That hydrogen will then feed a 200 MW power station, which can run during peak periods and provide flexible grid firming services – or generation that can be easily switched on and off to balance that being made by renewables. 

The Office of Hydrogen Power South Australia (OHPSA) was set up to get the whole project off the ground, with a plan to have it on line by 2026 and run by a new government-owned company.

Any excess hydrogen will be stored on site in a 3600-tonne storage facility and used for industrial decarbonisation – Whyalla steelworks owner Sanjev Gupta has expressed interest in taking some of the hydrogen produced at the site for his green steel plans, although those plans are in doubt because of his group’s financial issues.