A big chunk of government land is up for grabs at Port Bonython with a hydrogen hub a possibility
Industrial land at Port Bonython in the Upper Spencer Gulf is being put out for expressions of interest, with the government saying a hydrogen hub would be a suitable use.
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A massive chunk of state government land at Port Bonython — ideally suited for building a hydrogen hub — has been put out to national and international tender.
Treasurer Rob Lucas said the site, covering more than 2000 hectares, had already been identified as a potential future export hub for hydrogen, although all expressions of interest would be considered on their merit to create economic growth.
Whyalla, which is immediately adjacent to Port Bonython, has already been earmarked by the federal government as one of the locations in the running for part of $275.5m in funding designed to kickstart the nation’s hydrogen industry.
The state government has also developed a Hydrogen Action Plan designed to put the state on the front foot in capturing what is expected to be an industry worth about $11bn a year in economic output nationally by 2050.
As part of this plan, a Hydrogen Export Modelling Tool was developed, which Mr Lucas said had identified Port Bonython as a potential export hub for both green and blue hydrogen.
Green hydrogen is made by splitting water using renewable energy, while blue hydrogen strips the hydrogen out of natural gas, with the carbon dioxide captured and stored.
Santos currently operates a processing and export operation at the Port Bonython site, and there is also a diesel import and storage terminal there.
As well as more than 2000ha of land, the site also has access to a deepwater port with a 2.4km long jetty, which Mr Lucas said had been approved for a $37m state government-funded upgrade.
“This is a significant piece of land that, when properly developed, has the potential to create
significant economic and jobs growth not only for the Upper Spencer Gulf, but for the whole of South Australia,” he said.
“South Australia’s Hydrogen Action Plan, regulatory frameworks, support for demonstration projects, international relationships and informational resources for investors clearly demonstrate our commitment to establishing international hydrogen supply chains.
“Having a hydrogen hub exporting to Australian and international markets will leverage the $20bn pipeline of large-scale renewable energy projects under development in South Australia.’’
Mr Lucas said that by the mid 2030s, SA will be generating more renewable energy than we need for local use, providing a resource for companies focused on industries such as hydrogen export.
The site is also close to Whyalla, which has a skilled workforce, the steelworks and a container port, he said.
Under the federal government’s process, it is envisaged that four hydrogen hubs will be built, with private companies putting forward proposals for funding this year, with a decision on the successful bidders announced in early 2022.
Other potential locations for hydrogen hubs include Bell Bay in Tasmania, Gladstone in Queensland, Hunter Valley in New South Wales, Darwin in the Northern Territory, and La Trobe Valley in Victoria.
Expressions of interest for the Port Bonython site will be open for six weeks and will require development to start within five years.
Originally published as A big chunk of government land is up for grabs at Port Bonython with a hydrogen hub a possibility
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