South Australia’s green hydrogen revolution is about to kick off! We take a deep dive into what it all means for generations to come – we’re talking new jobs, cleaner industries, and serious global bragging rights.
When it comes to renewable energy, South Australia is not just the leader of the pack – it’s in a league of its own. South Australia has reduced its carbon emissions by 42 per cent from 2005 levels, while its renewable energy share has surged from one per cent in 2007 to over 74 per cent in 2023. That compares to just 36 per cent for Australia as a whole.
Smashing our sustainability targets
Our state’s original target was to reach net 100 per cent renewable energy by 2030, but SA’s doing so well we’ve moved the date forward three years to 2027. SA is light years ahead of other states, making us Australia’s renewable energy superpower. To put SA’s success into perspective: Queensland has a goal to reach 60 per cent renewables by 2050. When it comes to variable renewable wind and solar energy, we’re also a world leader – if South Australia was a country, it would be number one at 74% with Denmark second at 60%.
This isn’t the first time SA has been a big innovator in the power space. Our world-first big battery to stabilise the electricity grid by storing renewable energy was a huge deal. That big battery technology has since been replicated all over the world and has helped South Australia reach our renewable targets so far ahead of other states. Impressed? You ain’t seen nothing yet!
Green hydrogen: It’s all about to kick off
So far, SA’s main renewable energy sources have been our famously hot sun and plentiful wind. In contrast, our hydrogen production has been relatively small-scale. That’s all about to change.
Behind the scenes, the state government has been spending a lot of time and energy over the past few years making important plans, drafting new legislation and working with big-money investors for a future that uses our sun and wind to create green hydrogen on a grand scale.
The future is now!
We’re not just waiting for a hydrogen-powered future to arrive, we’re building it. Construction of a world-leading hydrogen plant at Whyalla is set to start in the second half this year, as part of the state government’s $593 million. The plant – which will be operational in 2026 – will be one of the world’s biggest hydrogen production facilities, complete with power generation and storage.
This renewable hydrogen power plant will be a new source of flexible green power, using excess renewable energy from our large-scale wind and solar farms, to make green hydrogen and storing it for when our electricity grid needs more power (when the sun isn’t shining and the wind isn’t blowing). This is a good thing for SA, because we at times have so much renewable energy it can make our grid unsteady (bye-bye blackouts!). The hydrogen power plant will also mean we rely less on coal and gas power – a win for the environment! If you want to know more about how green hydrogen production, storage and power generation works, check out our easy explainer.
SA: A global green hydrogen player
It’s not only SA’s power grid we’ll be using green hydrogen for. Green products made by hydrogen is Australia’s next multi-billion-dollar export opportunity. The Australian Renewable Energy Agency has forecast that Australian hydrogen exports could contribute $1.7 billion and 2,800 jobs to the national economy by 2030.
The excellent news is that South Australia has the wind, sun, land, infrastructure and skills to become a world-class hydrogen supplier, as well as the deep sea ports needed for easy international shipping.
Close to home, potential markets like Japan, South Korea, Indonesia and Singapore offer huge opportunities for green hydrogen exports. The state government has already locked in a project exporting green hydrogen from SA to Indonesia.
Billions of investment dollars
All these future exports are possible because the state government’s green hydrogen plant at Whyalla is only part of its hydrogen plan. Thanks to government support, South Australia is poised to produce and deliver a sustainable supply of green hydrogen with 56 renewable energy projects in the pipeline, totalling $21 billion – and counting.
The Port Bonython Hydrogen Hub is a collaboration on the Upper Spencer Gulf between the state government and private sector. It will be SA’s first large-scale clean hydrogen production precinct for both export and domestic markets. Think of it as a ‘hydrogen valley’, where a whole lot of companies in the same sector can share infrastructure and innovations to kickstart their projects and accelerate SA’s large-scale hydrogen industry development.
This new industrial hub and production plant in the Upper Spencer Gulf already has a deep-sea port on hand, so green hydrogen products can be easily shipped internationally.
Read more about the green hydrogen projects happening in SA here, or check out the green hydrogen development map of our state.
When it comes to renewable energy, South Australia is not just the leader of the pack – it’s in a league of its own. We talk to the man charged with building SA’s hydrogen industry:
Why should we care?
Green hydrogen isn’t just great for the environment, it’s also great for the economy! The green hydrogen sector is setting up our state for the future – the Whyalla Hydrogen Power Plant alone will create 1000 jobs during its creation, and there will be many more from other projects locked in for the near future.
Green hydrogen isn’t just for powering our grid and export – it’s part of a bigger picture to decarbonise whole industries by offering them a clean energy source to replace fossil fuels. Hydrogen can be used for all sorts of useful things, from making green cement, steel and fertiliser, to producing heat for home cooking and even powering cars and trucks.
Here’s just some of what’s happening in SA so far:
A renewable gas blend: Since 2021, Australian Gas Infrastructure Group’s Hydrogen Park South Australia has been producing hydrogen at the Tonsley Innovation Centre, and using it to create Australia’s first renewable gas blend. Almost 4000 Adelaide homes and businesses are now powered by a blended natural and hydrogen gas network. The hydrogen is 10 per cent of the mix right now – the highest concentration in Australia and in the future this is set to increase.
Sustainable cement at Port Augusta: Construction of a $125 million plant to make hydrogen-powered green cement from existing fly ash and slag is planned for Port Augusta. The project is a joint initiative between Hallett Group and two Korean companies, with support from the Federal Government.
The Whyalla steelworks goes green: Liberty Steel is phasing out coal-based steelmaking at Whyalla, and will instead use natural gas and then green hydrogen for fuel, aiming to create green steel and iron by 2030.
How to be part of the green hydrogen boom
South Aussies are perfectly placed to make the most of the amazing new job opportunities that come with the launch of our green hydrogen industry. TAFE SA offers courses that lead straight into the industry – from construction and carpentry to management and civil engineering. Plus there’s a wealth of degrees on offer at our state’s world-class universities, including cutting-edge research opportunities, that can launch your career in the green hydrogen industry.
For young people still in high school, Port Augusta Technical College will open next year with awesome opportunities to fast-track students into renewable energy and related construction jobs. They’ll be able to undertake specialist industry-based vocational education and training (VET), all while completing their SACE.
For more information, visit www.hydrogen.sa.gov.au.
Want more? Check out our easy explainer, Green hydrogen 101: A two-minute guide