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South Australian Premier Cancels $600m Hydrogen Plant and Redirects Funds to Whyalla Steelworks
Hydrogen Project Scrapped in Favour of Steel Industry Support
South Australian Premier Peter Malinauskas has scrapped plans for a $600 million green hydrogen plant, instead reallocating the funds to address emerging challenges at the Whyalla steelworks.
The ambitious project, which secured environmental approval in November 2024, was set to feature a 250MW electrolyser supplying hydrogen to a 200MW power generation unit, along with a storage pipeline capable of holding up to 100 tonnes of hydrogen.
Government Remains Committed to Green Hydrogen
Despite the cancellation, Prime Minister Anthony Albanese remains optimistic about the future of green hydrogen in Australia. "We are committed to renewable energy and the role hydrogen can play in our transition to net zero," he stated.
Whyalla Steelworks Takes Priority
The decision marks a significant shift in South Australia's energy strategy, as the state government prioritises the sustainability of Whyalla’s steel industry. With the global push for decarbonisation, the steelworks require urgent upgrades to align with emissions reduction targets.
Impact on South Australia's Hydrogen Ambitions
The move raises questions about South Australia’s long-term hydrogen ambitions and the potential impact on investors and the broader renewable energy sector. However, government sources indicate that alternative hydrogen projects could still move forward under revised plans.
What’s Next for Green Hydrogen in Australia?
South Australian Premier Peter Malinauskas promised that the state of South Australia would go forward with their hydrogen ambitions, however, it is now clear that these ambitions and making them possible were nothing more than an afterthought.
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