South Australia counts the cost of its cancelled green hydrogen power plan

South Australian authorities have been counting the cost of the government’s cancelled green hydrogen plants for the steel city of Whyalla that were to be the flagship project for the state.

The Hydrogen Jobs Plan, which including a planned 250 megawatt hydrogen electrolyser, a world-first 200 MW green hydrogen power plant, along storage facilities, were effectively brought to a halt in February this year after the government diverted its near $600 million of funding to rescue the struggling Whyalla Steelworks.

A report from the SA Audit office released this month reveals that $285 million was spent on the project, including the purchase of four hydrogen generators that the government is now trying to sell, and $85.4 million has already been written off as impaired assets.

There is another $87 million of contingent liabilities as a result of contracts to build electricity infrastructure for the green hydrogen plant, and there is a total of $125 million of remaining contractual commitments that need to be managed by the DEM.

The audit office noted that the accounting treatment “recognises that there is insufficient certainty that economic benefits will flow to the State.” It said any further comment on the issue would be reserved for a later update.

South Australia energy minister Tom Koutsantonis has expressed confidence that the government will get its money back on the “world first” green hydrogen turbines made by GE Vernova.

“We expect the vast majority of capital already expended (for the Hydrogen Jobs plan) will be recouped when we agree terms with an alternative operator for the four 50MW turbines ordered for the Hydrogen Jobs Plan, with a stipulation that they be operated in South Australia to provide additional generation capacity,” he said in May.

South Australia is still working on the Port Bonython Hydrogen Hub, and Koutsantonis says projects such as the Zero Petroleum’s feasibility study for a sustainable aviation fuel production facility in Whyalla will continue.

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