Gov'ts agree to A$100m hydrogen hub

26th September 2023 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

Gov'ts agree to A$100m hydrogen hub

PERTH ( – The federal and South Australian governments have finalised a grant agreement to develop the Port Bonython hydrogen hub near Whyalla.

Together, both governments are investing A$100-million to develop infrastructure at Port Bonython and prepare it to become South Australia's first large-scale export terminal for hydrogen.

Along with private sector funding, the redeveloped Port Bonython is expected to host projects worth up to A$13-billion and projected to generate as much as 1.8-million tonnes of hydrogen by 2030.

“We’re working with the South Australian government to develop the Port Bonython hydrogen hub, which will support regional jobs and take us a step closer to becoming a renewable energy superpower,” said Prime Minister Anthony Albanese.

“The global shift to clean energy and decarbonised economies is a huge economic opportunity for Australia. 

“We are determined to grasp this opportunity and are investing half a billion dollars into regional hydrogen hubs all around Australia.”

With expanses of available land, abundant solar and wind resources, South Australia is primed to become a world-class, low-cost hydrogen supplier and the South Australian government has a comprehensive plan to develop a hydrogen industry in the Spencer Gulf, including through its world-leading Hydrogen Jobs Plan, which will include development of a hydrogen electrolyser, power station and storage facility.

“Our state is blessed with the key ingredients the world needs to decarbonise international economies – abundant coincident wind and solar resources, critical minerals, strong renewable energy penetration, and well developed industrial hubs,” said South Australian Premier Peter Malinauskas.

“Through our Hydrogen Jobs Plan, my government is seizing the mantle to produce a world leading hydrogen electrolyser, power plant and storage facility.

“We’re working closely with industry to maximise this opportunity to grow a new industry, which has potential to create thousands of jobs and improve the standard of living for South Australians for generations to come.”

The Australian government, through the Net Zero Economy Agency and review of the National Hydrogen Strategy, will consider what is required to facilitate hydrogen supply chains.

The federal government is investing over half a billion dollars for regional hydrogen hubs including in Pilbara, Kwinana, Gladstone, Townsville, the Hunter, Bell Bay and Upper Spencer Gulf.

The recent Commonwealth Budget allocated A$2-billion for a new Hydrogen Headstart programme to scale up development of Australia’s renewable hydrogen industry.

By 2050, Australia’s hydrogen industry is projected to generate A$50-billion in additional gross domestic product and create over 16 000 jobs in regional Australia. The industry is also expected to create an additional 13 000 jobs from the construction of renewable energy infrastructure to power the hydrogen production.