Premier Peter Malinauskas reveals South Australia will open a trade office in Frankfurt, Germany

Premier Peter Malinauskas has revealed a South Australian trade office will be opened in the European financial hub of Frankfurt. Here’s what that means for SA’s hydrogen future.

A South Australian trade office will be opened in the European financial hub of Frankfurt, Germany, charged with spearheading the state’s green hydrogen push.

Premier Peter Malinauskas revealed the decision to open the state’s tenth overseas trade office while in the German capital, Berlin, on a four-day overseas trade mission.

Germany has been served by the state’s agent-general in London but, since Brexit in early 2020, the government has now decided to forge a stronger presence in the European Union.

Frankfurt houses the European Central Bank’s headquarters, while SA will join NSW, Victoria and Queensland with trade offices in Germany.

German President Frank-Walter Steinmeier (R), Gilles Le Van (L), CEO Air Liquide Germany and Project Manager Johanna Hess (C) stand at the Electrolyzer 'Trailblazer', which is expected to produce 2900 tons of hydrogen each year. Picture: Ina Fassbender/AFP

Germany is pursuing green hydrogen as an alternative energy source, because it is enduring an energy crisis since Russian gas imports were halted after the Ukraine invasion.

“Germany is the biggest economy in Europe, with a GDP worth more than $4 trillion, so it makes sense for South Australia to have a permanent presence here,” Mr Malinauskas said.

“With the world reopening post-Covid, it is vital that South Australia has a strong presence in key economies across the world.

“South Australia’s trade office in London has helped promote significant investment in

our state – and this new office will help forge stronger ties across continental Europe.”

The budgeted annual cost for the new office is $250,000 and staff appointments are yet to be made, although a recruiting process will start immediately with the aim of establishing the German presence as soon as possible.

Germany is SA’s eighth-largest trading partner, with two-way trade worth $622m. There are 67 German companies with a presence in SA – only the United Kingdom and United States have more.

The Shell Energy and Chemicals Park Rheinland in Wesseling, Germany. Picture: Andreas Rentz/Getty Images

In Berlin, Mr Malinauskas has been meeting German government ministers and key advisers to German chancellor Olaf Scholz, along with hydrogen and green steel industry leaders.

Germany is Europe’s biggest player in green hydrogen, which describes the process of using renewable energy to produce hydrogen. This can then be used to produce steel, hence the green steel term.

The Premier will then head to the Netherlands port city of Rotterdam for the World Hydrogen Summit, where he will deliver the opening keynote address.

The summit brings together the industry’s biggest global players from government and industry.

The state government plans to build a world-leading hydrogen power plant, electrolyser and storage facility at Whyalla in a centrepiece election policy costed at $593m when revealed in March, 2022.

A global market call has attracted 29 proposals, which are being assessed with a view to awarding contracts in the second half of 2023.