South Australia’s efforts to duplicate its leadership on big battery storage in the newly emerging green hydrogen technology has been met with an overwhelming response, with 29 formal proposals for its “world-leading” hydrogen jobs plan.
The state Labor government has committed nearly $600 million to build a 250MW green hydrogen electrolyser and a 200MW green hydrogen power plant in the steel city of Whyalla. Both would be the biggest of their type in the world, at least for a time.
The guarantee of government funds for first of its type projects has naturally attracted huge interest from Australia and around the world. The government received around 60 expressions of interest last year, which have converted into 29 formal proposals under a tender that closed last week.
Among those assumed to have made formal proposals are Andrew Forrest’s Fortescue Future Industries, but the scale of the tender and the level of government support is expected to have attracted interest from all the world’s major players.
The government says it has received responses received from organisations across Europe, North and South America and the Asia Pacific, including Australia. The proposals include those from major renewable energy companies, equipment manufacturers and technology providers.
The 29 bids include those just bidding on one part of the proposal – such as the provision of hydrogen electrolysers, the building of the power plant, hydrogen storage, and PPA proposals for hydrogen off take from people wishing to use the product
South Australia has become a world leader in the integration of wind and solar into its electricity grid, averaging more than 70 per cent over the last 12 months, more than 80 per cent in the last five months and generating more than 100 per cent for days at a time.
The state led the world in installing big battery storage with the so-called Tesla Big Battery, and now hopes to do the same with green hydrogen, which would attract enough wind and solar to meet its electricity needs two, three or four times over.
“Our state has tremendous potential to become a global leader in renewable energy production and supply,” said energy minister Tom Koutsantonis.
“In just under 16 years, South Australia has transformed from a reliance on coal for energy to extended periods in which renewables generate more than enough electricity to meet 100 per cent of the state’s consumption.
Sam Crafter, the head of the Office of Hydrogen Power and who led the taskforce that secured the first big battery, says the state has a “fantastic opportunity” to seize first mover advantage in developing a green hydrogen industry –  “just as we did with energy storage when we built the original big battery – a move that has now been widely emulated.”
It is expected the contracts will be awarded in the second half of this year, with the facilities due to be delivered by 2025.
