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Whyalla firming as hydrogen hub

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City of Whyalla, Media Release, 22 September 2021

City of Whyalla Mayor Clare McLaughlin said council welcomed the Federal Government’s commitment to hydrogen production on Eyre Peninsula, further augmenting the State Government’s investment in infrastructure and projects that will support Whyalla as a “mega-green” hydrogen hub.

Photo: City of Whyalla

“We have an abundance of solar energy projects in the pipeline to power the conversion of water to hydrogen, and we have the skilled people capable of building what will be new industry for Whyalla and South Australia,” Mayor McLaughlin said.

“Importantly, we have a port and jetty to export hydrogen to the world, and we have the local heavy industry consumers that can use the hydrogen to ‘green’ their manufacturing processes.

“Council is also very keen to see the heritage-listed former Whyalla High School building and land repurposed to be home to the key stakeholders of a Whyalla hydrogen production industry.

“We are currently entering into talks with the State Government to protect the future of this building and ensure it plays a critical role in bringing all the hydrogen stakeholders under one roof – collaborating and building a new industry that further diversifies our local economy and creates new, well-paid, 21st century ‘green’ jobs.”

The Federal Government’s $1.2 billion hydrogen investment is set to boost economic activity and jobs in regional South Australia.

Federal Member for Grey Rowan Ramsey welcomed the announcement of a hub to be located on Eyre Peninsula and is very supportive of hydrogen as a clean fuel of the future.

“As a government we recognise the potential for hydrogen in a world increasingly focussed on the reduction of CO2 emissions,” Mr Ramsey said.

“Here in Australia and particularly in SA, with our vast potential for the production of “clean energy”, we are well placed to produce “green hydrogen” for export.

“Our determination is to commercialise this technology by co-locating hydrogen production and its industrial uses by building on the infrastructure and workforces of regional areas.

“The State Government has identified Whyalla as a designated renewable energy site and locating the hub there at this stage, probably looks like the most likely option. However, the area determined for production is the EP and as such, all bids from the broader region will considered.

“What we are looking for is companies, or consortia to put bids forward for grants up to $3m to initially progress feasibility and design work which if approved, would enable them to be eligible for up to $70m to assist in building the project.

“Obviously the relative advantages of any particular site will be analysed by the proponents, with proximity to wind and solar resource, transmission lines, workforce and an export terminal all taken into account.

“A future hydrogen industry will support existing jobs on EP as well as create new ones and provide cheaper energy for businesses.

“A thriving hydrogen sector will also help us achieve our emission-reduction goals while continuing to grow our economy. This is all part of our technology, not taxes approach.”

Hubs will consolidate Australia’s natural resource strengths to unlock cheap, clean energy and stimulate a potential surge in industrial activity.

Hydrogen hubs, as identified by the National Hydrogen Strategy as a priority measure, will create economies of scale by co-locating hydrogen producers, users and exporters in one location.

Government funding will help to de-risk projects and quickly achieve the scale necessary to establish new export industries and meet the growing energy needs of the Indo Pacific region.

Seven prospective locations across Australia have been identified and including Eyre Peninsula (SA) and Bell Bay (TAS), Darwin (NT), Gladstone (QLD), Latrobe Valley (VIC), Hunter Valley (NSW), and Pilbara (WA).]

Minister for Energy and Emissions Reduction Angus Taylor said Clean Hydrogen Industrial Hubs will create the domestic demand needed to help the hydrogen industry drive down costs and scale-up production creating new job opportunities for our regions.

“Hydrogen hubs are crucial to realising the Morrison Government’s vision of making Australia a major global player in hydrogen production and exports by 2030,” Minister Taylor said.

“We are looking to partner with industry, and work with state and territory governments to make this a reality.

“Australia has the potential to be a world leader in the production of affordable and clean hydrogen, and our hydrogen industry could create around 8,000 new Australian jobs and generate over $11 billion a year in GDP by 2050.”

The Clean Hydrogen Industrial Hub Grants program will build on the work being done by the Special Adviser on Low Emissions Technology, Dr Alan Finkel, to broker international partnerships and initiatives that will accelerate the deployment of hydrogen and other priority low emissions technologies.

Cooperation on hydrogen forms part of new low emissions partnerships with Germany, Singapore, Japan and the United Kingdom announced in 2021.

Program guidelines are now available at business.gov.au, with applications to open in the coming weeks.

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