Turbines for hydrogen plant to be on-sold after industry plans shelved
State-of-the-art turbines acquired by the state that were set to power SA’s electricity grid will be on-sold after the government shelved its hydrogen industry plans yesterday.
Four gas turbines acquired by taxpayers in November last year as part of ambitious hydrogen energy plans will be on-sold after the state government “deferred” its goal of establishing a new industry in order to divert funds for a Whyalla Steelworks rescue package.
Energy and mining minister Tom Koutsantonis confirmed in Parliament yesterday that the turbines would be on-sold “for the original purchase price or higher – with the guarantee they will be installed in South Australia to provide additional generation capacity”.
In November, the government announced it had secured an agreement with ATCO Australia to contract GE Vernova to supply a first-of-its-kind aeroderivative gas turbine solution, capable of running on hydrogen fuel.
The four turbines would have operated at the Whyalla hydrogen power plant. Hydrogen fuel would have powered the LM6000VELOX turbines to provide power to the state’s electricity grid.
The agreement was signed at COP29 in Azerbaijan. If installed as part of the government’s now-shelved $600 million hydrogen plans, it would have been the first time a GE Vernova power plant project would have been powered by aeroderivative gas turbine combustion technology capable of operating on 100 per cent hydrogen.
Yesterday, Koutsantonis said the government “remained committed to the establishment of a hydrogen industry in Australia”.
“The Office of Hydrogen Power SA – or OHPSA – will continue to operate, with a focus on exploring and facilitating investment opportunities for a hydrogen industry in South Australia,” Koutsantonis said.
“OHPSA has undertaken a significant body of work, including the procurement of hydrogen-capable gas turbines.
“The world wants green iron and steel, and hydrogen will play an important part in that transition. But South Australia can only manufacture green steel with a strong, sustainable Whyalla Steelworks. This must be our priority.”
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The government’s plans for a green hydrogen hub at the Upper Spencer Gulf were shelved yesterday, with the $600 million allocated for its development and construction instead being diverted to the Whyalla Steelworks rescue package.
Announced yesterday, the state and federal governments will invest $2.4 billion to support the steel industry and creditors left hanging in the wake of the administration of the Whyalla Steelworks.
“What we’re doing is we’re relieving them of all the burden and the struggle associated with the administration so they can get on with doing what they do best, and that’s keeping this place running and making steel in this country,” Premier Peter Malinauskas said yesterday.
