South Australia slashes red tape for new wind, solar and hydrogen “gold rush”

South Australia is aiming to cut red tape to pave way for what it expects to be a new wind, solar and green hydrogen “gold rush” that will propel the state beyond its already world-leading renewables share of 70 per cent.

The state Labor government has introduced a “landmark” bill that aims to streamline and coordina development of hydrogen and renewable energy projects, which it expects to total at least $20 billion in coming years.

Premier Peter Malinauskas told reporters on Wednesday that the new laws will open up vast tracts of land for investors to produce renewable energy and hydrogen “at a scale seen unlike anywhere else in the world”.

He says SA must take advantage of its natural wind and solar bounty to power green hydrogen production and energy-intensive industries like steel manufacturing.

“There is a hydrogen and renewable energy race on around the country, it’s a race that is on around the world,” he said. “We want to win that race.”

The Hydrogen and Renewable Energy Bill consists of six Acts merged into one, helping to minimise red tape for investors and facilitate a smoother process to development of large-scale hydrogen and renewable energy projects.

The new bill applies to both freehold and government-owned land and state waters and will help to provide investor and community certainty and clarity.

Five license types will be created for each of the key stages of a renewable energy project’s development – from early research and feasibility right through construction, operation, and closure.

Those looking to develop renewable or hydrogen projects on freehold land will need to secure access through direct agreement with landowners, and a new competitive system will be introduced for conferring access and licenses for projects on pastoral land and state waters.

Opposition from landholders to projects on their property has been a major roadblock in other states, but South Australia state energy minister Tom Koutsantonis says he is not concerned about it in his state.

“I think SA’s social licence is a lot better than it is on the eastern seaboard,” he said, adding that consultation with pastoralists has shown most welcome renewable development on their land as it gives them an extra revenue stream while still allowing them to use the land for cropping or livestock grazing.

But he said some leaseholders were locking up vast swathes of resource-rich government land because they are land-banking for future development opportunities.

“We’re stepping in and saying that resource belongs to the people of SA.”

Opposition leader David Speirs said his party was inclined to support the legislation but was concerned about protections for farmers who don’t want their land sold to developers.

Malinauskas said South Australia is home to some of the most prospective wind and solar resources in the world, and the state plans to capitalise on this leadership position through our Hydrogen Jobs Plan – which includes a soon-to-be-announced tender result for a hydrogen electrolyser and power plant.

“This is the equivalent of finding oil in Saudi Arabia, or striking gold in Victoria,” Malinauskas said in a statement.

The five license types available consist of:

• Renewable Energy Feasibility Licence/Permit – Enables exploration for renewable energy, including construction of monitoring equipment.
• Renewable Energy Infrastructure Licence – Permits construction, operation, decommissioning, and rehabilitation of renewable energy infrastructure.
• Renewable Energy Research Licence – Permits construction, operation, decommissioning, and rehabilitation of renewable energy infrastructure for the purpose of researching the capabilities of a technology, system, or process.
• Hydrogen Generation Licence – Permits construction, operation, decommissioning, and rehabilitation of hydrogen generation facilities.
• Associated Infrastructure Licence – Permits ancillary infrastructure (transmission, roads, water treatment), and associated facilities (hydrogen power plants, ports for hydrogen product export, desalination for hydrogen production).

With AAP