Port Bonython to attract billions of investment dollars for hydrogen

The world’s eye is on the outskirts of Whyalla for the gas that burns like we need it – clean and green.

International investors want to spend billions of dollars in South Australia developing Port Bonython near Whyalla into a major hydrogen hub, the state government says.

Seven projects have been short-listed to take a stake in Port Bonython, making “SA one of the most significant producers of hydrogen in the world”, Premier Steven Marshall said.

He said it would “deliver regional jobs’ growth for decades to come in Whyalla, Port Augusta, Port Pirie and beyond”.

Plans for the site are crystallising as Whyalla Steelworks owner GFG Alliance next weekend takes to the world stage at the business summit at COP26 in Glasgow.

GFG Alliance, major partner of Port Adelaide Football Club, will give a presentation at The Investment COP, highlighting the need for greensteel – steel made using hydrogen rather than coal.

Steel production accounts for 8 per cent of global emissions and radical change in production will be needed to meet zero-carbon goals, GFG executives will say.

The state government is spending $37m to upgrade Port Bonython and in May invited companies to submit proposals to use the site.

Bidders are known to include H2U, which plans a $240m project and has backing from Japanese giant Mitsubishi and a global trading deal with German company RWE.

Manufacturing hydrogen at Port Bonython using renewable energy to power an electrolyser “offers the opp­ortunity to export SA’s abundant solar and wind resources to support deep decarbonisation in the global energy, industrial and shipping sectors”, H2U chief executive Attilio Pigneri said.

Attilio Pigneri, chief executive of Hydrogen Utility (H2U).

Energy and Mining Minister Dan van Holst Pellekaan said the Port Bonython initiative was part of developing “credible private sector projects to export our clean power to the world”.

“The response from industry to the invitation for Port Bonython expressions of interest shows that we can turn our vision of 500 per cent renewable energy by 2050 into a reality,” he said.

Hydrogen produced at Port Bonython could be exported as ammonia or piped for use by SA industries, including the nearby steelworks.

Making steel with hydrogen is part of GFG Alliance chief executive Sanjeev Gup­ta’s vision to transform the steelworks and reap premium prices on international markets.

His plans to build the massive Cultana solar farm – between Whyalla and Port Bonython – and a big battery at Port Augusta are set to move ahead within weeks.

The projects had been put up for sale in May as GFG faced a debt crisis that has since eased.

Adam Hammersley, project manager at GFG subsidiary SIMEC Energy, said the deal would most likely be a joint venture.

“Sanjeev has a vision to be carbon neutral by 2030 and these two projects are quite crucial for that,” Mr Hammersley said.

“They’re fully committed, and we’re excited to still be on-board and part of it.”

Originally published as Port Bonython to attract billions of investment dollars for hydrogen