Key projects set to transform the Upper Spencer Gulf

Green energy, jobs and major industrial projects have seen thousands flocking to the Upper Spencer Gulf to get a piece of the action. Here are some of the key projects transforming the region.

With several key industry developments underway and in the works for the next decade, the Upper Spencer Gulf has seen demand for rentals skyrocket as people migrate for career and industry opportunities.

Independent Member for Stuart Geoff Brock said the current opportunities for Upper Spencer Gulf were “unprecedented.”

“The opportunities for the Upper Spencer Gulf are unprecedented when one considers the commitment from the state government for hydrogen, energy, water and the support for the expansion of mining in the north of our state,” Mr Brock said.

“No other place in the world has this coincidence of solar and wind energy in one location.

“Our challenge will be to facilitate industry investment to take advantage of these opportunities.”

Premier Peter Malinauskas said projects like the Northern Water Project are being carefully assessed. Picture: File

Premier Peter Malinauskas echoed the sentiment with his appraisal of opportunities for the USG.

“The Upper Spencer Gulf has in abundance what the world needs to decarbonise industry – the best coincident solar and wind resources, copper and rare earth minerals, a strong industrial base and a robust, skilled workforce,” he said

“It was the partnership between industry and the Playford government – the former investing in a blast furnace, the latter building the Morgan-Whyalla pipeline – that transformed the Upper Spencer Gulf into the industrial powerhouse that it is today.

“Almost a century later, it is time to be just as ambitious and seize transformative opportunities for the region.”

Here are some of the key projects taking the region by storm.

Northern Water Supply

Sustainable water supply for the Upper Spencer Gulf and surrounding regions has been a hot-topic issue for several years with a move away from overreliance on the River Murray and Great Artesian Basin flagged by the SA government.

The Northern Water Supply (NWS) is one of several projects currently being considered to mitigate the region’s water needs, with consultation underway in regards to the location for a desalination plant.

The government has asked for feedback on three proposed sites for the desal plant, Crag Point, Point Lowly and Mullaquana.

Key industry stakeholders and community representatives have been consulted in the process of choosing a location with is slated to bolster job growth in the region while securing quality water supply for the expanding energy sector.

Three locations are being considered for the Northern Water Supply desalination plant in the USG. Picture: supplied

Whyalla Hydrogen Plant – Whyalla

The proposed Whyalla Hydrogen Plant has attracted significant attention and was one of the key announcements in the Malinauskas government’s election play back in the 2022 election.

The green energy hub has $593 million in state funding allocated towards it.

Hydrogen Power SA – the government agency managing the project said the project has attracted keen interest from overseas and have narrowed down 29 potential candidates to build the plant.

The Messenger understands an announcement will arrive by July with the green hydrogen power plant expected to be operational by December 2025.

South Australia Energy Minister Koutsantonis said the facility will “play a major role in the establishing the state as a significant global player in green hydrogen production and give it an early advantage in the rapidly emerging space.”

Vast Solar Port Augusta Concentrated Solar Thermal Power Project

Outside of Port Augusta, Vast’s solar thermal power project is moving ahead with the federal government cashing in to boost the project’s development.

In February this year, the plant was approved funding to the tune of $65 million from the Australian Renewable Energy Agency, and is expected to create hundreds of local jobs and be the “catalyst” for an Australian concentrated solar thermal power (CSP) industry.

Concentrated solar thermal power methodologies use turbines similar to those found in coal and gas power plants, capturing and storing the energy from the sun during the day to be used to generate heat and power, including at night.

Vast Solar hope to create a billion-dollar export market for concentrated solar power in Australia. Picture: Supplied

Vast intends for the project to provide jobs for skilled workers displaced by jobs lost by closure of any fossil-fired power plants.

The project will be co-located with a solar methanol plant, co-funded by the Australian and German governments, designed to help decarbonise existing key industries that will struggle to meet net-zero carbon emission targets by producing zer0-emission fuel for shipping and aviation.

Vast CEO, Craig Wood, highlighted the potential of CSP to support co-located industries by providing low-cost zero-emissions heat and power.

“The Spencer Gulf is the ideal location to deploy our world-leading concentrated solar thermal power (CSP) technology, which will produce 24/7 carbon-free heat and power to decarbonise electricity, industry and transport,” Mr Wood said.

Liberty Steelworks Whyalla (Carbon phase out) – Whyalla

Liberty Steel announced in April that they were phasing-out of coal-based steelmaking at its Whyalla steelworks, having signed a $485 million contract for a low-carbon electric arc furnace.

The steelworks, owned by British billionaire Sanjeev Gupta, said the new infrastructure would allow for their plant’s capacity for steelmaking to rise from 1 million tonnes per annum to more than 1.5 million.

The switch to the electric furnaces is predicted to reduce carbon dioxide emissions by 90 per cent.

Liberty said the new infrastructure would increase steelmaking capacity at Whyalla from 1 million tonnes per annum to more than 1.5mtpa, while reducing carbon dioxide emissions by 90 per cent.

Liberty Steel owner Sanjeev Gupta visiting the Arrium Steel Plant in Whyalla. Picture: AAP Image/David Mariuz

Premier Peter Malinauskas said the state government was looking forward to working with key industrial players, including Liberty, to take full advantage of the opportunity to re industrialise the Upper Spencer Gulf on the back of the announcement.

Port Pirie hydrogen facility – Port Pirie

Development is underway for a multi-purpose hydrogen facility in Port Pirie, with Trade and Investment Minister Nick Champion meeting with Trafigura, owners of Port Pirie’s multi-metals facility Nyrstar, in April 2023 to discuss future plans.

The proposed plant would be designed to produce 100 tonnes of green hydrogen per day, with the oxygen created in hydrogen production able to be used by the Nyrstar smelter in an effort to decarbonise the existing smelter’s power supply.

The hydrogen facility has the potential to contribute to the booming job market in the Upper Spencer Gulf and transform the existing energy sector.

Trafigura issued $750 million in tenders for the hydrogen project in August 2022. Picture: File

Minister Nick Champion said the project could deliver “game changing economic benefits” for the city.

“These are the projects that will create jobs for South Australians across a range of specialities for both the short and long-term,” he said.