SA’s hydrogen power boss quizzed over how $593m plant will help struggling households

SA’s $593 million hydrogen power plant is under fire with critics claiming there’s no data showing it will help with skyrocketing electricity bills.

Spruiking hydrogen at Tonsley, Energy and Mining Minister Tom Koutsantonis says the new hydrogen plant is on track. Picture: NCA NewsWire / Brenton Edwards

SA’s $593m hydrogen power plant is under fire over a lack of data to back claims it will lower skyrocketing electricity bills and fears inflation will blow out its construction cost.

Office of Hydrogen Power chief executive Sam Crafter said no modelling was completed on how the plant would bring electricity bills down for households and small businesses when it starts operation in 2026.

The news emerged as the project was put under the magnifying glass in the government’s Budget and Finance committee meeting.

Instead, Mr Crafter explained the hydrogen power station, electrolyser and storage facility near Whyalla would help the network by providing power to industry and send cheaper electricity into the grid to stabilise renewable energy reliant on the sun and wind.

“We have focused on the delivery,” he told the meeting, adding that procurement contracts were expected to be signed so construction can start later this year.

Sam Crafter, Chief Executive Officer, Office of Hydrogen Power. Picture Matt Turner.

Mr Crafter also revealed the project is currently under scrutiny by the federal government after two listed bird species, the Western Grasswren and the Southern Whiteface, were found at the site, triggering the Environment Protection Biodiversity Control Act.

He was also quizzed about his staff numbers ballooning from eight to 55 in the past two years.

Mr Crafter said rising staff numbers in his office were required to deliver the project and some were moved from other government offices including the Energy and Mining Department.

After repeated questioning about whether rising construction costs, inflation and a potential shortage of plant components would lead to a cost blowout on building the power plant, Mr Crafter said contracts were being negotiated based on the $593 million figure.

Committee chairperson Heidi Girolamo, who is also the Shadow Minister for Cost of Living, called for more transparency over figures.

Liberal MLC Heidi Girolamo.

“It is outrageous that the government cannot provide any indication of any positive impact to the cost of living,” she said.

Concerns backed by Liberal leader Vincent Tarzia who claimed the State Government was “hellbent on proceeding with an expensive and unproven plant that will provide no immediate relief for South Australian families or small business” in a cost of living crisis.

He said the average household power bill rose by $800 and small business by $1700 since Labor came into office.

“Today we heard they can’t tell us if prices will come down or how much taxpayer money has been spent on spin and advertising and that the timeline has blown out to early 2026,” Mr Tarzia said.

Energy and Mining Minister Tom Koutsantonis said “as far as we are concerned our projects are on time and on budget” and procurement “was well advanced”.

A government spokesman said “the Hydrogen Power Plant will enable lower power prices for industry, which should in turn help bring cost of living pressures down for all South Australians.”