Tenders go out for Whyalla hydrogen project, sparking claims of hypocrisy from Liberals

Tenders go out for the state government’s landmark hydrogen power precinct but the Liberals call the fine print a “damning document”.

Invitations have gone to global hydrogen power experts to “co-own” projects linked to the state’s landmark green project near Whyalla.

The surprise inclusion of “co-ownership opportunities” in tender documents has prompted criticism by the Liberal opposition which said the State Government’s anti-privatisation rhetoric had been compromised.

The tender states: “This might include co-ownership opportunities which may or may not be associated with proposed commercial operating models and/or co-location opportunities.’’

Opposition energy spokesman Stephen Patterson said; “It’s been proven time and time again that Labor can’t manage their budget – with the $5.5bn cost blowout for the final piece of the North-South Corridor a prime example – and now they’re walking away from their promise of full government ownership of this project because it’s in grave danger of running over budget,’’ he said.

A spokesman for Energy Minister Tom Koutsantonis said the Labor Party went to the election with a policy that the hydrogen plan would be state-owned, but there may be additional elements of private ownership.

“The project will be state owned. The tender allows opportunities for the private sector to invest in additional assets if they will add value,'' the spokesman said.

Mr Patterson said the document also confirmed Labor had scrapped its commitment to 3600 tonnes of liquefied hydrogen storage, which he claimed was to avoid a cost blowout of hundreds of millions of dollars.

When asked why the storage option had been dumped, Mr Koutsantonis’ spokesman said: “The Request For Proposals was worded so as to not restrict bidders from offering creative storage infrastructure solutions.”

Australian Gas Strategy and Sustainability’s Kristin Raman with Premier Peter Malinauskas at Hydrogen Park SA in the Tonsley Innovation Precinct. Picture: Brenton Edwards

Mr Patterson said in another change, the project – burning green hydrogen gas made from water to make electricity – may also now use more dirty carbon-producing natural gas.

The tender states; “Parallel activities that are being progressed separately … include … hydrocarbon (gas) supply and reticulation for generators (if required)”.

Included in the tender, but sitting alongside the hydrogen projects are possible requirements for “Third party hydrocarbon supply, hydrocarbon supply pipeline … and hydrocarbon storage”.

Mr Koutsantonis’ spokesman said “Like the electrolysis element of the project, the technologies involved in hydrogen generation are new, and the RfP (tender) is deliberately structured to allow the Government to weigh all options on merit”.

The plan was also to deliver a baseload electricity generator for SA, but this has been downgraded to a peaking plant.

“This damning document proves Labor’s lofty hydrogen promise is in peril and facing massive cost blowouts,” Mr Patterson said.