Port Pirie hydrogen proposal shelved along with other doomed proposals

Port Pirie’s green hydrogen proposal is the latest to be shafted across the state, joining the ranks of other doomed projects like the state government’s own Whyalla hydrogen plant.

Despite multiple national set backs and seemingly few successes, the South Australian government says it remains committed to developing the state’s hydrogen industry.

It comes after The Australian revealed on Tuesday, that global commodities giant Trafigura had scrapped its $750 million green hydrogen project earmarked for Nyrstar’s Port Pirie smelting facility.

The project, which was quietly shelved in 2024, joins a growing list of green hydrogen plans that have either failed or have been deferred across the state, including the government’s own $600 million Whyalla hydrogen plant, the proposed AGL Torrens Island Green Hydrogen Hub and the Neoen Australia Hydrogen Superhub at Crystal Brook Energy Park.

The Nyrstar smelting plant has been in operation since the 1880s. Picture: AAP Image/David Mariuz

The Port Pirie project – which would have been the world’s largest hydrogen electrolyser ­facility – never progressed beyond a $5 million feasibility study, with the Marshall Liberal government contributing $2.5 million dollars.

While the facility was set to open in 2025, the developers opted not to proceed after completing an engineering and design process in 2023.

Sources said prohibitive construction costs and low demand from buyers for the green product, both played into the ­decision to walk away from the project.

Yet, despite the sector’s lack of progress within Australia, the Albanese government is steadfast in its support of the clean-energy source, pledging green hydrogen would help underpin its Future Made in Australia plan.

The government has an $8bn war chest aimed at creating incentives for the fledgling commodity, committing more than $800m in production incentives last week to kickstart the 1500MW Murchison green hydrogen project in Western ­Australia.

In SA, a government spokesperson at the Office of Hydrogen Power said the state was uniquely placed to support renewable hydrogen developments, boasting an abundant mix of wind and solar energy.

“Hydrogen plays a role in the state’s decarbonisation goals, and is critical to green steel manufacturing, offering a sustainable alternative to traditional coal-based steelmaking,” the spokesperson said.

“The Hyp SA project at Tonsley is already operational, producing renewable hydrogen that is blended into the supply of 3,700 local homes and businesses.

Several other hydrogen projects are understood to be progressing through feasibility stages, including the 60MW Hyp Adelaide project at Bolivar, Hallet Group’s green cement initiative, and Vast Energy’s renewable methanol demonstration plant in Port Augusta.

“Hydrogen production technologies are continuing to gain momentum … and will help secure and stabilise South Australia’s manufacturing sector for generations to come,” the spokesperson said.

Originally published as Port Pirie hydrogen proposal shelved along with other doomed proposals