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Home , Australian Government, South Australia, Starfish Hill Wind Farm

South 's Hydrogen Action Plan

South Australia has the wind, sun, land, infrastructure and skills to be a world-class renewable hydrogen supplier.

www.hydrogen.sa.gov.au Table of contents Our vision is a future in which hydrogen “provides economic benefits to Australia through export revenue and new Foreword 3 industries and jobs, supports the Renewable hydrogen pathways 5 's renewable hydrogen potential 7 transition to low emissions energy across South Australia's hydrogen story so far 9 Renewable hydrogen export opportunities for South Australia 11

, heating, transport and industry, improves Hydrogen projects in South Australia 13 • Hydrogen and Ammonia Supply Chain Demonstrator 13 • Hydrogen Superhub at Energy Park 14 energy system resilience and increases • Hydrogen Park South Australia 15 • University of South Australia's Testbed 17

consumer choice. Australia's National Hydrogen Strategy 18

South Australia's Hydrogen Action Plan 19 • Action theme 1 — Facilitate investments in hydrogen infrastructure 21 • Action theme 2 — Establish a world-class regulatory framework 23 ” • Action theme 3 — Deepen trade relationships and supply capabilities 25 • Action theme 4 — Foster innovation and workforce development 27 Dr Alan Finkel • Action theme 5 — Integrate hydrogen into our energy system 29 Australia’s Chief Scientist Briefing paper: Hydrogen for Australia’s Future Presented to COAG Energy Council in August 2018

Front cover image: Starfish Hill , South Australia's first wind farm built in 2003 near on the tip of the

Artist’s impression of Hydrogen Park South Australia, a 1.25MW 1 South Australia's Hydrogen Action Plan Government of South Australia September 2019 electrolyser, blending equipment and tube and trailer facility. 2 Foreword

South Australia is ideally Hydrogen production presents additional South Australia has a proud South Australia has an suited to seize the huge benefits for regional South Australian record as ‘the State of opportunity to progress the opportunities created by communities, where projects are likely to be Science’. development of renewable based. the emerging global market Research and education institutions across hydrogen projects at scale Our expectation is that during the 2030s, South for hydrogen and its many the state deliver world class STEM (Science, to meet the significant Australia will generate more clean power than applications for energy Technology, Engineering and Maths) future hydrogen export required for local use, setting us up to become a generation, storage and education, research and innovation and work requirement, in particular to national and global force in clean energy. transport. collaboratively with industry sectors and the -Pacific . government agencies to translate innovation to Hydrogen allows the world to rethink ways to Now is the time to step up the development of With hydrogen production technologies from deliver ‘new to the world’ products, processes generate and store energy, power transport a hydrogen economy. While South Australia is renewable energy and water already proven, and services. fleets and heat homes. Hydrogen fuel cells can not alone in setting its sights on developing a the focus is now on achieving significant cost hydrogen economy, the State has a first mover power trains, trucks and buses to replace diesel South Australia has been at the forefront of reduction through production at scale within advantage. as a fuel and hydrogen can supplement and energy innovation that has fuelled a remarkable a comprehensive regulatory framework. South replace natural gas in domestic gas networks We believe we can deliver green hydrogen to increase in renewable energy generation to over Australia is well positioned for this next stage. that warm our homes and cook our meals. 50% of total energy generation in the state. our trading partners to meet their ambitious This will need close national and international plans. We are already working with the The Council of Australian Governments Energy South Australia’s successful implementation engagement across the spectrum of renewable and all State and Territory Council’s National Hydrogen Strategy Working of the world’s largest lithium-ion battery hydrogen activities. Once implemented, the Governments to develop a National Hydrogen Group has already identified hydrogen as and autonomous vehicle trials at the Tonsley actions outlined in this Plan will enable South Strategy for 2020-2030. This Hydrogen Action Australia’s next multi-billion export opportunity. Innovation District are recent examples that Australia to become a national and global force Plan will help South Australia be a supplier of Modelling for the Australian Renewable Energy showcase the capacity of industry to harness in emission reduction as part of a global clean choice for green hydrogen in Australia. Agency has forecast Australian hydrogen innovation to drive the development of a STEM- energy transition. exports could contribute $1.7 billion and 2,800 enabled future workforce and deliver economic The Hydrogen Action Plan also aligns with the South Australia was the first Australian jobs to the national economy by 2030. Our impact. Marshall Liberal Government’s Growth State jurisdiction to work with industry to develop a aim is to position South Australia to attract a Plan, which aims to sustain the State’s annual Innovation and Translation Neighbourhoods plan to accelerate the transition to a hydrogen substantial share of that potential economic economic growth rate at 3 per cent. such as those at Tonsley, Mawson Lakes and economy through the release of the Hydrogen activity. Our new trade offices in North East Asia, China in the heart of represent Roadmap for South Australia in 2017. With more than 50 per cent of the State’s energy sites where industry leaders can also access key and the United States and our long-standing Subsequent to this, the State provided support mix generated through renewable sources, new information on the role of technologies, Agent-General’s office in the for four renewable hydrogen projects. The interconnection and storage technologies such such as machine learning, quantum provide platforms to promote our hydrogen first of these projects will be in production in as hydrogen will support South Australia to communication, automation, sensors and new capabilities to international markets and facilitate mid-2020, delivering a blend of hydrogen and become a net 100 per cent renewable energy materials. Access to this information supports trade and investment partnerships. natural gas to a local residential community in generator during the 2030s. We can then future-focussed industry sectors to be resilient Beginning with Australia's largest electrolyser metropolitan Adelaide – an Australian first for its capture significant economic benefits from and compete in changing world markets. coming online in 2020 in metropolitan Adelaide, scale and nature. renewable energy exports. These Neighbourhoods are also ‘sticky for we are determined to unlock South Australia’s This Action Plan is a major milestone for the With more than $7 billion attracted in clean talent’, attracting global innovators and are renewable hydrogen potential. continued development of a significant, clean, energy generation and storage, international where the next generation of innovation leaders safe and economically beneficial hydrogen value investors already regard South Australia as an work to solve industry problems to provide a chain in South Australia attractive investment destination. Through leading edge for business partners. Against Hon MP the production of renewable hydrogen, South this backdrop, South Australia is positioned as Australia can help meet the world’s energy Premier of South Australia an international leader for the development demands while reducing emissions at home and of renewable or ‘green’ hydrogen production Terry Burgess abroad. to underpin a hydrogen economy built on Co-chair, South 's domestic use and a significant global export The hydrogen economy is a further step in the Hydrogen Economy Steering Committee Hon Dan van Holst Pellekaan MP potential transition of South Australia’s energy system as we integrate renewable energy into the grid Minister for Energy and Mining to deliver more affordable, reliable and cleaner Government of South Australia energy while also creating more jobs and Professor Caroline McMillen investment in South Australia. Chief Scientist of South Australia

3 South Australia's Hydrogen Action Plan Government of South Australia September 2019 4 Renewable hydrogen Export pathways

South Australia’s abundant wind and solar Renewable hydrogen technologies have considerable potential resources are the launchpad for the state’s to couple primary energy sectors such as gas, electricity, and renewable hydrogen industry. transport for the optimised supply of carbon-free energy to mining, agriculture and heavy industries domestically and overseas. Reduced costs of solar and wind energy combined with electrolyser technology advancements have created a tipping point, where renewable hydrogen is now a growingly viable and much needed carbon-free fuel for both Australia’s domestic and export markets. Industry and agriculture Utility scale solar PV Hydrogen or ammonia have a variety of uses in several industries Liquefaction / Conversion plants such as mining, farming and manufacturing. Hydrogen can be liquefied or blended with other chemicals to create other products (for example, ammonia or methylcyclohexane).

Storage Vehicles The hydrogen is stored under pressure before being transported Fuel cell electric vehicles for use. including cars, buses, trains, trucks, forklifts, motorcycles and others are powered by hydrogen.

Wind Transportation Natural gas network Hydrogen can be stored in the natural gas network, and used to lower carbon Electrolyser emissions. An electrolyser uses electricity to separate Water water (H O) into hydrogen (H ) and 2 2 Pipeline Oxygen (O2). If renewable energy is used to power the electrolyser, renewable or ‘green’ Electricity hydrogen is produced. Hydrogen can be converted back to electricity by using a fuel cell or gas turbine. This can Rooftop solar PV and help supply the network during battery storage times of high demand.

5 South Australia's Hydrogen Action Plan Government of South Australia September 2019 6 Wind and Solar Development Potential in South Australia Energy production facilities shown have a capacity greater than 5MW

Coober Pedy South Australia's " renewable hydrogen potential Leigh Creek South Australia is Australia's leading " mainland state for renewable energy. By 2025, it is predicted that 90 per cent of the state’s electricity Woomera " could be generated from renewable sources based on Australian Energy Market Operator (AEMO) data. South Australia is almost 1 million square kilometres, four times larger than the United Kingdom, with expansive areas available for SouthSouth AustraliaAustralia renewable energy generation projects. Ceduna South Australia can harness its renewable energy to produce " renewable hydrogen, and the Government of South Australia is currently working with investors to realise the State’s first suite of " pilot and demonstration renewable hydrogen production projects. The map on the right shows areas of South Australia with optimal conditions for wind, solar and co-located wind and solar generation " – ideal for achieving high utilisation rates for electrolysers powered " entirely by low-cost renewable electricity.

Burra South Australia currently has... " Wallaroo Over $7bn invested " in renewable " energy with over Renmark $20bn in the 1 in 3 homes with pipeline " Port Lincoln Adelaide rooftop solar "

Optimal location for: Energy Production The worlds biggest " Wind farm Existing and under development solar farms A world class lithium-ion battery Predicted wind speed above 7.31 m/sec. Victor Harbor Solar farm Existing and under development wind farms regulatory regime DNI greater than 23.5 MJ/m2

Wind farm and/or Solar farm Desalination plant " Keith Predicted wind speed above 7.31 m/sec. and DNI greater than 23.5 MJ/m2 Transmission Line Solar farm DNI greater than 20.5 MJ/m2 14 GW of renewable Wind farm and/or Solar farm 22 large scale wind Predicted wind speed above 7.31 m/sec. energy generation and DNI greater than 20.5 MJ/m2

farms currently and storage Optimal location for: Energy Production operating projects in the Wind farm Existing and under development solar farms Predicted wind speed above 7.31 m/sec. pipeline Solar farm Existing and under development wind farms DNI greater than 23.5 MJ/m2 Wind farm and/or Solar farm Desalination plant Predicted wind speed above 7.31 m/sec. and DNI greater than 23.5 MJ/m2 Transmission Line Mou" nt Solar farm Gambier DNI greater than 20.5 MJ/m2 7 South Australia's Hydrogen Action Plan Government of South Australia SeptemberWind farm and/or2019 Solar farm 8 Predicted wind speed above 7.31 m/sec. and DNI greater than 20.5 MJ/m2 May 2017 Government of South Australia South Australia's hosts hydrogen roundtable More than 100 stakeholders convene as part of the February 2018 development of a South More than $17 million in grants Australian hydrogen strategy. hydrogen story so and over $25 million in loans committed to renewable hydrogen projects November 2018 Government of South Australia commits funding to 4 hydrogen far... Hydrogen Research and projects. Development in South Australia report released Identifying existing hydrogen research and development 2018 capabilities opportunities. COAG Energy Council supports development of a National December 2016 Hydrogen Strategy Adelaide hydrogen vehicle Energy ministers from all showcase Australian jurisdictions accept Hyundai and Toyota showcase a proposal from Australia’s hydrogen vehicles in Adelaide Chief Scientist Dr Alan Finkel to CBD for leaders and the public. June 2019 develop a National Hydrogen Strategy for 2020-2030. Hydrogen in gas networks report Government of South Australia April 2018 initiates kick-start report on Government of South Australia 10% hydrogen in domestic joins Future Fuels Cooperative gas networks for input to final Research Centre (CRC) National Hydrogen Strategy. A $90m industry-focussed research, design and development partnership supporting Australia’s transition to a low carbon energy future.

August 2018 September 2017 CSIRO National Hydrogen Roadmap released Hydrogen Roadmap for South Co-sponsored by the Australia released September 2019 Government of South Australia. South Australia is the first Australian state to publish a International Conference on hydrogen strategy. Hydrogen Safety 2019 held in Adelaide South Australian Green The International Association Hydrogen Study released for Hydrogen Safety (HySafe) Commissioned by the and the Government of South Government of South Australia, Australia host the 8th conference. July 2019 the study identifies the cost and feasibility of producing South Australian Hydrogen The Government of South renewable hydrogen in SA. Export Modelling Tool Australia joins Green announced Ammonia Consortium Government of South Australia Commencement of a landmark An independent association attendance at the 2017 study of existing and potential under Japanese law with International Conference on infrastructure required for an membership open to global Hydrogen Safety in Hamburg international scale renewable entities with an interest in green Adelaide announced as the host hydrogen export value chain. (renewable) ammonia. city for 2019.

9 South Australia's Hydrogen Action Plan Government of South Australia September 2019 10 Renewable hydrogen export opportunities Korea Japan for South Australia China

Nations, and industries are China looking to hydrogen technologies China’s Hydrogen Fuel Cell Vehicle Technology Roadmap is to achieve deep cuts in carbon focused on establishing fuel cell vehicle technology at emissions over the coming decades. scale to enable widespread domestic production and use by 2030. Hydrogen can also address poor air quality, energy security, and provide energy for power generation and With timeframes for milestone objectives set for 2020, 2025 transportation. and 2030, highlights of the Roadmap include: Many of Australia’s key trading partners in Asia have, or are • Increased use of hydrogen derived from clean developing, national strategies to advance the hydrogen energies to more than 50 per cent by 2030. economy, including clear targets and goals for the • Commercial deployment of more than one million importation and use of hydrogen. passenger and commercial vehicles by 2030. South Australia is actively exploring the supply of renewable • Technological progress in fuel cell systems, key hydrogen to these emerging hydrogen export markets, as materials and components including a near well as its use by domestic primary energy industries. 90 per cent reduction by 2025 in fuel cell stack costs compared to 2015 prices. South Australia believes that we can deliver green hydrogen to trading partners in line with their ambitious plans. Singapore

Republic of Korea Japan The Hydrogen Economy Roadmap of Korea is formalised Japan’s Basic Hydrogen Strategy affirms its commitment by its Hydrogen Economy Act, outlining Korea’s vision to to becoming “the first country in the world to realise a lead a hydrogen-based economy. The strategy has various hydrogen-based society”. Targets under the strategy timeframes for its targets and goals, generally referencing identify short, medium and long-term goals and actions, 2022 and 2040. Core elements of the plan include: with a view towards major achievement by 2050. Areas of Singapore • Building a hydrogen production and distribution focus under the Basic Hydrogen Strategy include: system, using 70 per cent carbon-free hydrogen and • Increasing hydrogen’s use in Japan from 200 tonnes In the first quarter of 2019, the Singapore reducing greenhouse gas emissions by 27 million to 300,000 tonnes a year in 2030, targeting carbon- Prime Minister’s Office issued a tender tonnes by 2040. free hydrogen use as part of its future picture. for a consultancy study on the potential • Increasing production and use of hydrogen fuel cell • Developing international hydrogen supply chains for hydrogen imports and downstream electric vehicles, including 6.2 million passenger including Australia, such as the development and applications for Singapore. vehicles, 40,000 buses and 1,200 refuelling stations by demonstration of a liquefied hydrogen supply chain Singapore is particularly interested in 2040. by the mid-2020’s. replacing liquefied natural gas for fuelling • Increasing production and use of fuel cells for power • Targeting the use of fuel cell electric vehicles its power plants with alternatives such as generation, including a targeted 15GW for power including 800,000 passenger cars, 12,000 buses and hydrogen to eliminate 60 per cent of its South generation and 2.1 GW for households by 2040. 10,000 forklifts by 2030. emissions. Australia

11 South Australia's Hydrogen Action Plan Government of South Australia September 2019 12 Hydrogen Superhub at Crystal Brook Hydrogen projects in Energy Park

Neoen Australia is an Independent The South Australian Government provided South Australia Power Producer specialising in Development Approval to the Crystal Brook renewable energy projects across Energy Park in mid-2019, with construction multiple technologies including solar, aimed to begin in the second half of 2020. wind and storage. Port Lincoln Hydrogen and Ammonia The Crystal Brook Energy Park development Having completed the first stage of its With more than 1 GW of assets under aims to change the role of renewables from feasibility study in late 2018, discussions operation or construction in the country, just providing power when available to are underway to optimise the hydrogen Supply Chain Demonstrator is the owner and manager of the providing firm power 24-hours a day. This is production facility, including through world's largest lithium ion battery located in essential for long-term sustainability and it hydrogen production at the Crystal Brook South Australia, which uses Tesla Powerpacks will be the first of its kind to offer this type of Energy Park site or alternatively to construct The Hydrogen Utility™ (H2U) is a generation to the grid during periods of low to store up to 100 MW/129 MWh of energy. power service in Australia. a direct transmission line to a nearby port for specialist developer of hydrogen wind or solar output. The project has capacity The Crystal Brook Energy Park development The South Australian Government has potential export. infrastructure solutions for sustainable to provide a truly self-contained solution to is a $500 million renewable energy project awarded a $1 million grant to Neoen mobility and renewable energy storage firming renewable energy supply within the The Hydrogen Superhub has significant that combines storage, solar and wind, to conduct a study on the technical applications. South Australia grid. potential as a world-scale project that can located about 3 kilometres north of Crystal and economic feasibility of a hydrogen produce large quantities of renewable H2U is developing a facility integrating Considered one of the most prospective Brook in South Australia’s Mid-North. The production facility at the Crystal Brook hydrogen at a competitive price. At the time "South Australia more than 30 MW in water electrolysis and chemical carriers of hydrogen, green park is a 275 MW renewable energy facility Energy Park. The proposed 50 MW Hydrogen of awarding funds to Neoen for the feasibility is at the forefront distributed ammonia production, near ammonia - a chemical compound of nitrogen with up to 125 MW of wind generation Superhub would be the largest co- study, the South Australian Government of both renewable Port Lincoln in South Australia. The South and renewable hydrogen - is also a potential comprising 26 turbines, 150 MW of solar PV located wind, solar, battery and hydrogen also committed to provide a further $4 Australian Government has provided $4.7 fuel for large-scale power stations, making it and 130 MW/400 MWh of battery storage production facility in the world, with the million grant and $20 million in loans should generation million through a grant and additional loan an attractive export opportunity. with a purpose built sub-station to deliver potential to produce about 25,000 kilograms the project proceed to financial close and funding to deliver the $117.5 million project. the power back into the South Australian of hydrogen a day using 100 per cent and hydrogen Along with the Government of South construction. grid. renewable energy. infrastructure The plant will use 100 per cent wind and Australia, H2U joined Japan’s Green Ammonia developments and solar generation to produce up to 18,000 Consortium in July 2019. The consortium we are very pleased tonnes of green ammonia a year to supply comprises of more than 70 companies and the local agriculture and industry sectors. institutions, the Commonwealth Scientific "The Crystal Brook Energy Park "The introduction of hydrogen to be able to develop This is a globally significant demonstration and Industrial Research Organisation (CSIRO) in South Australia aims to change as part of a next generation of our project in this project for the emerging hydrogen energy and the Australian Trade and Investment the role of renewables, from just clean energy storage technologies important market" sector, being one of the first-ever commercial Commission. plants to produce carbon dioxide (CO2)-free providing power when available to is highly prospective for South In August 2019, H2U executed an agreement green ammonia from intermittent renewable providing firm power 24-hours a Australia’s renewable energy with Australian iron ore mining and - Dr Attilio Pigneri, CEO H2U resources, and to demonstrate the adoption exploration company to day. This is essential for long-term industry." of green hydrogen across multiple value collectively develop a commercialisation sustainability and it will be the chains. pathway for a multi-user, multi-commodity first of its kind to offer that type of - Garth Heron, Head of Development, Neoen The plant will also feature two 16 MW open- deep water port at the proposed 1,100 power service in Australia. Australia cycle gas turbines operating 100 per cent hectare site (pictured below). on hydrogen at the site to provide electricity

Artist's impression for Iron Road’s Stage 2 Capesize Port. Image courtesy of Iron Road.

The developed and owned by Neoen, built by Tesla at Neoen’s 309MW in South Australia 13 South Australia's Hydrogen Action Plan Government of South Australia September 2019 14 Hydrogen Park South Australia "We are delighted that Adelaide-based Australian Gas distribution network. It will also show how South Australia will lead the Networks (AGN), part of the Australian integrating electrolysers into the electricity Gas Infrastructure Group (AGIG), owns networks can support energy stability, as way with this technology. gas distribution assets across Australia, more renewable including in South Australia. capacity comes onto the grid. Hydrogen Park SA Hydrogen Park South Australia (HyP SA) Having completed the front-end engineering is an $11.4 million demonstration project and design study and ordered the provides an opportunity to delivered and funded by AGN, supported by electrolyser, AGN is now working towards a $4.9 million grant from the South Australian securing regulatory and development develop an Australian-first Government. The proposed facility comprises approvals and procuring land. Community a 1.25 MW Siemens proton exchange and stakeholder consultation on the project integrated hydrogen project membrane electrolyser, the largest of its kind began in July 2019. installed in Australia. that paves the way for the Hyp SA is considering installation of tube- Based at the Tonsley Innovation District in trailer filling facilities as an expansion commercial deployment of a metropolitan Adelaide, HyP SA removes opportunity that will enable the transport carbon from our gas supply as South Australia of hydrogen so it can be blended into other hydrogen economy. advances towards net-zero emissions by 2050. points in the network, as well as hydrogen From mid-2020, for an initial period of five vehicle refuelling, industrial use and years, AGN will produce renewable hydrogen potentially export. using renewable electricity1 and water. HyP SA is AGN’s first step to lowering carbon "And importantly, it propels AGN will supply more than 700 properties emissions and is part of its broader aim to in the nearby suburb of Mitchell Park with a blend up to 10 per cent renewable hydrogen South Australia’s status blend of 5 per cent renewable hydrogen in in South Australia and across the other natural gas, delivered through the existing regions AGN serve, before consideration of as a leader in renewable gas network. Customers receiving the 5 per 100 per cent hydrogen conversion. cent renewable gas blend will not notice any technology and a first mover AGN is also actively working with Australian Fabrication of Hydrogen Buffer Storage Vessel difference about the quality of gas received for the Hydrogen Park South Australia Project at Governments, including the South Australian and are not required to make any change to Pipetech in Adelaide in hydrogen" Government and industry, to establish their appliances. The amount paid for gas will the Australian Hydrogen Centre, that will be no different from the cost of 100 per cent externalise learnings from HyP SA and natural gas. deliver feasibility studies related to increased - Ben Wilson, Chief Executive The project will demonstrate the feasibility of hydrogen blending, and 100 per cent blending hydrogen into the South Australian hydrogen conversion on Australian , Officer, gas network and inform the South Australian cities and states. Government's planning to transition the gas

1. AGN will purchase (and voluntarily surrender) large-Scale Generation Certificates to offset the amount of electricity used and ensure the hydrogen produced is renewable.

Artist’s impression of Hydrogen Park South Australia, a 1.25MW electrolyser, blending equipment and tube and trailer facility.

15 South Australia's Hydrogen Action Plan Government of South Australia September 2019 The Main Assembly Building (MAB) of the Tonsley Innovation District 16 University of South Australia's Renewable Australia's Energy Testbed National

UniSA’s Mawson Lakes campus will be 2015, launching the Research Node for Low Hydrogen transformed into a national testbed of Carbon Living, the State’s premier hub for renewable energy technologies through multidisciplinary, industry-driven research, Strategy an $8.7 million project to incorporate exploring low carbon solutions. solar power, flow batteries, a hydrogen The facility will feature solar panels on 18 fuel cell stack and thermal energy buildings at Mawson Lakes, one hectare of At the December 2018 Council of storage. ground-mounted solar panels, and thermal Australian Governments (COAG) The project – supported by a $3.6 million energy storage. Once completed in 2020, it Energy Council meeting, Energy grant from the South Australian Government will increase the availability of carbon-free Ministers from all Australian – aims to produce data to support multi- renewable energy, reducing pressure on the jurisdictions accepted a proposal from disciplinary research projects (such as local electricity network. Australia’s Chief Scientist Dr Alan optimising performance, economics, and Finkel to develop a National Hydrogen By partnering with Australian renewable energy and emissions) in hydrogen, battery Strategy for 2020-2030. energy companies, UniSA expects the facility storage and solar technologies. Energy to provide more than 250 MWh of electrical South Australia is represented on the produced will supplement campus needs storage annually, reducing the peak electrical COAG Energy Council by especially at periods of peak demand. load by 43 per cent, cutting its emissions by Dan van Holst Pellekaan MP, Minister for The project is at the forefront of UniSA’s 35 per cent and making renewable energy Energy and Mining. strategy to reduce its carbon footprint and available on demand. South Australia is contributing to the embrace renewable energy technologies. The UniSA expects the project to achieve annual development of a National Hydrogen campus underlined its green credentials in energy savings of about $470,000. Strategy with representatives across all work streams, and leading a Kick-start Project on blending up to 10 per cent hydrogen with natural gas in domestic "South Australia is already leading "It will bring a host of new jobs gas networks. the world in the transition to and investment opportunities to Australia’s National Hydrogen Strategy renewable energy. This project the State as well as inspiring and is scheduled to be presented to Energy will enhance that reputation and developing the next generation of Ministers for approval in December 2019. also show other organisations how renewable energy professionals." South Australia’s Hydrogen Action Plan will be the primary mechanism through they can move towards energy which South Australia contributes to independence and contribute to a - Dr Stephen Berry, Renewable Energy and the implementation of a future National carbon neutral future." Decarbonisation Manager, UniSA Hydrogen Strategy, with a focus on being a supplier-of-choice for certified renewable hydrogen. - Professor David Lloyd, UniSA Vice Chancellor

"I am confident that

Solar PV array for University of South Australia can play a part Australia's Renewable Energy System at its in the development of Mawson Lakes campus. hydrogen as a fuel source that can contribute to the reduction of global greenhouse gas emissions.

Ideally, we need to plan and start now." — Dr Alan Finkel Australia’s Chief Scientist Unlocking the hydrogen future, Committee for the Economic Development of Australia, August 2019

17 South Australia's Hydrogen Action Plan Government of South Australia September 2019 18 South Australia's Vision: South Australia leverages its wind, sun, land, infrastructure and Hydrogen Action skills to be a world-class renewable hydrogen supplier. Objective: Plan Scale-up renewable hydrogen production for export and domestic consumption

Implementation

Key performance indicators to be monitored by the Hydrogen Economy Steering Committee: Facilitate Establish a world Deepen trade Foster innovation Integrate hydrogen • Annual volume of hydrogen investments class regulatory relationships and and workforce skills into our energy produced in SA in hydrogen framework supply capabilities development system • Annual volume of hydrogen infrastructure exported overseas from SA • Cumulative capital investment in hydrogen infrastructure Springboard from first Deliver global best-practice Establish robust relationships Accelerate hydrogen Understanding the value of renewable hydrogen hydrogen regulations that are and value chains to supply innovation based on solid hydrogen in our decarbonised • Construction and ongoing jobs production in 2020 towards a simple and efficient, building renewable hydrogen to new academic research and energy system created hydrogen economy community and investor and emerging trade partners industry partnerships, and confidence ensure South Australia has the workforce skills, capability and capacity to deliver

Actions: Actions: Actions: Actions: Actions:

• Deliver the South Australian • Efficient, effective regulations • Promote renewable hydrogen • Leverage current and future • Secure wider energy system Hydrogen Export Modelling Tool supported by Hydrogen Regulatory through its global network of trade hydrogen projects for training and benefits of hydrogen-led sector to inform the establishment of Working Group and investment offices innovation coupling to our renewable energy renewable hydrogen export supply chains • Certification for South Australian • Support inbound and outbound • Skilling South Australia to support • Facilitate knowledge sharing renewable hydrogen trade and investment missions the expansion of new industries and from the first hydrogen projects • Facilitate the development of a hydrogen economy integrated into South Australia’s hydrogen infrastructure projects in • Advocating for internationally • Engage with international hydrogen energy system South Australia harmonised codes and standards consortia • Support and participate in Future Fuels Cooperative Research Centre • Identify any changes that might • Develop a plan for the cost-effective • Educating the South Australian • Facilitate hydrogen-related foreign be needed to the National Energy application of hydrogen in domestic community and industry on direct investment, business • Support and participate in the Market Framework to ensure the primary energy sectors hydrogen technologies for the migration and business expansion Australian Hydrogen Centre efficient integration of hydrogen future into energy systems • Incorporate hydrogen into long- term infrastructure planning • Investigate hydrogen production and use in remote areas of South Australia

19 South Australia's Hydrogen Action Plan Government of South Australia September 2019 20 South Australia is on the move to facilitate Facilitate investments in hydrogen infrastructure...

Deliver the South Australian Hydrogen Develop a plan for the cost-effective Export Modelling Tool to inform the application of hydrogen in domestic investments establishment of renewable hydrogen primary energy sectors export supply chains The South Australian Government’s existing An interactive hydrogen map is available renewable hydrogen pilots, projects and at www.hydrogen.sa.gov.au to enable demonstrations are designed to build in hydrogen international investors and project developers renewable hydrogen infrastructure, scale to identify ideal sites in South Australia for the domestic market, and help develop a hydrogen infrastructure. substantial industry capable of export. The South Australian Government will work The South Australian Government is infrastructure with industry on a landmark study of existing committed to identifying cost-effective and potential infrastructure required for an applications for renewable hydrogen’s wider Action theme 1 international-scale, renewable hydrogen- use in gas networks, transportation and export value chain. in industrial and remote applications; and developing a plan to guide investment in Its findings will be available across the these areas. This will assist in achieving the worldwide network of South Australian state's aim of net zero emissions by 2050 by Springboard from first renewable trade and investment offices to inform key decarbonising other primary energy use. considerations such as locations for hydrogen hydrogen production in 2020 towards a production and conversion, volume of supply Incorporate hydrogen into long-term potential, and the landed cost of renewable infrastructure planning hydrogen economy hydrogen from South Australia. Infrastructure SA is an independent agency Facilitate the development of hydrogen responsible for framing South Australia’s 20- While building up to export-scale production is a long-term South Australia’s key challenge in infrastructure projects in South Australia year Infrastructure Strategy, which will inform proposition, South Australia will methodically capitalise on its realising a hydrogen economy is scaling a Capital Intentions Statement – a five-year comparative advantages and build upon its existing investments The South Australian Government has up large-scale renewable hydrogen rolling annual plan that will identify specific in renewable hydrogen production infrastructure. co-invested more than $17 million in grants major projects to be undertaken as a priority. production to export-capable volumes as and $25 million in loans to four renewable This will start with Australia’s largest electrolyser planned to be part of a sustainable value chain. hydrogen projects. Infrastructure SA has been engaged to operational in metropolitan Adelaide in 2020. consider hydrogen as part of its long-term Led by the Department for Energy and infrastructure planning. Mining, the South Australian Government will continue to deepen its engagement with key hydrogen industry stakeholders and From South Australia's first demonstration projects to building scale coordinate the State’s efforts in scaling up its hydrogen industry. The South Australian Goverment has South Australia will leverage these co-invested more than $17 million projects to reduce investment risk in in grants and $25 million in loans to the next suite of large-scale renewable four hydrogen production projects. hydrogen projects in South Australia, which will aim to reduce production costs Large scale These projects will generate learnings for per unit of renewable hydrogen. export projects industry and regulators, grow community awareness and understanding, and Learnings: develop workforce skills. - industry knowledge - innovation & workforce development Early export The projects are also key to establish - community awareness South Australia as a credible supplier of - regulation, codes & standards projects renewable hydrogen supported by a - international collaboration Domestic local workforce in a real-life environment, applications

and provide a platform for international ScaleProject collaboration in developing a renewable hydrogen value chain. First renewable H production

2020 mid2020s Adelaide hydrogen vehicle showcase in Time Square, Adelaide CBD

21 South Australia's Hydrogen Action Plan Government of South Australia September 2019 22 South Australia is on the move to establish Establish a a world-class regulatory framework…

Efficient, effective regulations supported Advocating for internationally world-class by Hydrogen Regulatory Working Group harmonised codes and standards Ensuring our regulatory regime delivers The South Australian Government will outstanding levels of safety and trust, continue to maintain and further develop efficiently with clear and unambiguous its strong international hydrogen network, objectives is essential for investors to enter the including ongoing involvement in the regulatory market with confidence. International Association for Hydrogen Safety (HySafe), Centre for Hydrogen Safety (US) and The South Australian Government has other internationally respected organisations established a cross-government agency in the research and development of hydrogen Hydrogen Regulatory Working Group that technologies and its safe use. framework includes first responders and all other workplace safety, environmental, planning and Working in close collaboration with our Action theme 2 technical regulation authorities involved in the international and national colleagues, we will permitting of hydrogen facilities. advocate for best practice, harmonised codes and standards, making it simpler and more The Hydrogen Regulatory Working Group efficient for investors working across multiple will continue to develop competency and locations and delivering consumer benefits. Deliver global best-practice hydrogen awareness of hydrogen across government to ensure regulatory gaps are identified and Educating the South Australian regulations that are simple and efficient, addressed. It will continue to provide advice community and industry on hydrogen to proponents of hydrogen projects to ensure technologies for the future building community and investor compliance with existing requirements. Public understanding and support for confidence Certification for South Australian hydrogen is critical to its adoption and success. renewable hydrogen To help capture the value in the hydrogen economy, the South Australian Government Australian jurisdictions on regulatory standards and continues to Renewable or ‘green’ hydrogen generally As one of the top regulatory regimes in will work proactively with the community and contribute to the development of Australia’s National Hydrogen refers to hydrogen produced using electricity the world for tight and shale gas, South industry to increase knowledge and support Strategy for 2020-2030. from renewable sources. This is distinct from Australia has a proven record of providing for a growing green hydrogen industry. ‘brown’ or ‘grey’ hydrogen, which generally South Australia’s regulatory expertise, close collaboration with effective, transparent regulatory means hydrogen produced using fossil fuels the national and international hydrogen communities and our frameworks that facilitate economic that emit carbon into the atmosphere. growth. focus on safety provides a world-leading hydrogen regulatory regime designed to meet the needs of investors and the Customers in both Australian and overseas The South Australian Government, through the Council of community. markets seeking to reduce emissions recognise Australian Governments (COAG), works closely with other the difference between renewable and other forms of hydrogen. For South Australian renewable hydrogen to be attractive in these markets, it will be important for its origin to be International Association for guaranteed by a scheme that meets market Hydrogen Safety requirements. The South Australian Government will The South Australian Government is a continue to work with Australian and financial member of the International international jurisdictions, including through Association for Hydrogen Safety (“HySafe”) the National Hydrogen Strategy, to develop and has developed close links with an appropriate mechanism to guarantee hydrogen safety experts operating across the origin of South Australian hydrogen the world. production for domestic use and export. The 8th International Conference on Hydrogen Safety was held in Adelaide, South Australia in September 2019. The world’s premier hydrogen-risk management event, the biennial conference provides an open platform for presenting and discussing new findings and information on hydrogen safety.

23 South Australia's Hydrogen Action Plan Government of South Australia September 2019 24 South Australia is on the move to deepen Deepen trade its trade relationships and supply relationships and capabilities… Promote renewable hydrogen through Engage with international hydrogen its global network of trade and consortia investment offices South Australia is committed to engaging The South Australian Government is with international hydrogen consortia to supply capabilities opening five new overseas trade and share information and cooperate on the investment offices in strategic locations scale-up of the global hydrogen production Action theme 3 in China, northeast Asia, southeast Asia, and export industry. the Middle East, and the United States of South Australia’s membership of the Green America to build on its existing overseas Ammonia Consortium of global entities with presence. Establish robust relationships and value an interest in green (renewable) ammonia is South Australia’s trade office network will an example of relationship building South chains to supply renewable hydrogen to also work alongside the South Australian Australia is pursuing. Agent General’s Office in London and new and emerging trade partners Austrade’s global network to facilitate Facilitate hydrogen-related foreign business connections and provide support direct investment, business migration to companies looking to enter international and business expansion Attracting investment and capturing a greater share of export markets, and to overseas investors looking By leading the nation in the uptake Securing overseas investment in new markets is also the focus of the South Australian Growth Agenda for opportunities in South Australia. of renewable energy and pioneering export-capable industries such as hydrogen led by the Department for Trade, Tourism and Investment. grid-scale energy storage solutions, will be a major contributor to achieving Support inbound and outbound trade international companies have already New free trade agreements with our regional partners and the the South Australian Government’s State and investment missions begun to recognise South Australia as Commonwealth Government’s commitment to developing a Growth Plan of accelerating annual gross a destination for sustainable energy National Hydrogen Strategy also supports South Australia’s The South Australian Government has state product growth to 3 per cent. aim of leveraging its advantages to open up new market increased support to attract major events investment. The Department for Trade, Tourism and opportunities. and business conferences to Adelaide that Investment is at the forefront of securing Hydrogen provides a further opportunity to build on the provide a drawcard for overseas investors new investment in growth industries, and existing investment and the State’s established record as and buyers, for example the International the hydrogen economy is one of the key a reliable supplier of commodities and adopter of new Conference on Hydrogen Safety in Adelaide export-oriented sectors that will contribute technologies. in September 2019. Bottom left: Representative Won- to meeting these State Growth Plan targets. Wook Lee, member of Korean The South Australian Government publishes National Assembly, cooks on a Expanding South Australia’s modern Heatlie hydrogen barbecue during an Annual Calendar of Inbound and industrial supply chain to offer the capability the H2Korea delegations visit to the Outbound Trade and Investment Missions Tonsley Innovation District, Adelaide and workforce to support the multiple that allows local companies to align their facets of a growing hydrogen economy, Bottom right: His Excellency the overseas engagement with target hydrogen Governor AC, Minister from the production of hydrogen (and other markets. for Trade, Tourism and Investment South Australian hydrogen engagements in the Asia-Pacific hydrogen derived products), to its storage, the Honourable David Ridgway MP conversion (power-to-gas and gas-to- and Commissioner, South Australia – Japan and Korea, Sally Townsend November 2018: Minister for Trade, March 2019: His Excellency the Governor August 2019: an inbound delegation power) and its distribution, across both the open the North East Asia Trade and Tourism and Investment the Hon. David the Honourable Hieu Van Le AC and led by Representative Lee Won-Wook of energy and mobility sectors. Investment Office Ridgway MP officially opened South Minister Ridgway participated in number Korean National Assembly and industry Australia’s new Shanghai Trade and of hydrogen meetings in Japan and the leaders visited Adelaide for meetings Investment Office as the first of five Republic of Korea as part of the North East with South Australian industry and strategic trade and investment offices. Asia Trade and Investment Office government, including lunch cooked over opening. a locally-built barbecue fuelled by 100% February 2019: the Chief Executive of hydrogen. the Department for Energy and Mining July 2019: Ms Sally Townsend, South Dr Paul Heithersay led a delegation of Australia’s Commissioner to Japan and September 2019: an inbound delegation South Australian hydrogen industry Korea, represented South Australia at the led by the University of Tokyo and representatives to the 2019 International inaugural meeting of the Green Ammonia comprising industry representatives from Hydrogen and Fuel Cell Expo in Tokyo, Consortium in Tokyo. The Government of the Renewable Hydrogen Consortium Japan, as part of a “Team Australia” South Australia, Austrade and CSIRO have visited Adelaide for meetings with South approach coordinated by Austrade. been invited to join as advisory members. Australian industry and government.

25 South Australia's Hydrogen Action Plan Government of South Australia September 2019 26 South Australia is on the move to foster Foster innovation innovation and workforce development…

Leverage current and future hydrogen Support and participate in Future Fuels and workforce projects for training and innovation Cooperative Research Centre The “Hydrogen Research and Development More than $90 million in government, in South Australia” report to the South industry and university cash and in- Australian Government identifies existing kind funding support the Future Fuels hydrogen research and development Cooperative Research Centre (CRC) work in development capability in the state and opportunities to transitioning Australia’s multi-billion dollar extend this capability across local, national energy sector to low-carbon fuels including Action theme 4 and international collaboration hydrogen. South Australia will leverage its South Australia is the only Australian state demonstration projects, such as AGN’s to commit government funding to the Hydrogen Park South Australia at the Future Fuels CRC, and will actively assist Accelerate hydrogen innovation based Tonsley Innovation District and H2U’s the Centre’s research during its seven-year South Australian Renewable Hydrogen lifetime. on solid academic research and industry and Ammonia Supply Chain Demonstrator plant to provide a platform for rapid testing, Support and participate in the Australian partnerships, and ensure South Australia development and commercial expansion of Hydrogen Centre hydrogen related projects. has the workforce skills, capability and The South Australian Government has Skilling South Australia to support committed to support the establishment capacity to deliver the expansion of new industries and a of the Australian Hydrogen Centre led by hydrogen economy Australian Gas Infrastructure Group. South Australia combines traditional The rapid emergence of a hydrogen industry will create demand The South Australian Government is Building upon the learnings from Hydrogen manufacturing capabilities in defence for skilled workers and tailor training programs that meet the committed to supporting an additional Park South Australia at the Tonsley and automotive industries with emerging demand for new specialist skills and promote opportunities for 20,800 apprentices and trainees over four Innovation District, the proposed Australian skills in space and energy sectors to create STEM and graduates, particularly in regional areas where years through the Skilling South Australia Hydrogen Centre will share knowledge a thriving, vibrant innovation community. projects are likely to be based initiative. The initiative is committed to on the feasibility of blending 10 per cent ensuring these opportunities meet the hydrogen into city and regional gas South Australia’s three main universities are all active in hydrogen state’s skills needs both now and in the networks as a step toward 100 per cent and energy related research across the Centre for Energy future. conversion to hydrogen of the South Technology (), the Institute for Nanoscale Australian and other Australian jurisdictional Government will work with industry, Science and Technology () to the Future distribution networks. vocational education and training provides Industries Institute (University of South Australia). and universities to leverage the Skilling This will help inform a plan for the cost- South Australia and other initiatives to effective use of hydrogen in this sector. encourage apprenticeships and traineeships Innovation and Translation neighbourhoods to support the hydrogen sector.

Lot Fourteen, Adelaide Tonsley Innovation District Osborne Naval Shipyard Located in the heart of Adelaide’s The focal point of a 20-year master plan The Osborne Naval Shipyard is Australia’s CBD, Lot Fourteen is a creation and for the transformation of the former premier naval industry hub, home to innovation neighbourhood bringing Mitsubishi car plant in metropolitan many leading technology companies together members of the entrepreneurial Adelaide, the Tonsley Innovation District pursuing opportunities in the defence ecosystem including the new Australian has become Australia’s most awarded or commercial shipbuilding and ship Space Agency, the Australian Cyber innovation district and will host Australia’s sustainment projects. Osborne has close Collaboration Centre, and the Australian largest operational hydrogen electrolyser connections with the Edinburgh Defence Institute for Machine Learning. as well as up to 6 MW in on-site solar PV Precinct and the Commonwealth Defence and battery storage. Science and Technology agency Also incorporating the Future Industries Exchange for Entrepreneurship (FIXE), Lot Tonsley has become an innovation test Fourteen provides an ideal platform for bed for productive and sustainable new companies connected to the new working and living environment around renewable hydrogen economy. future energy, mining, manufacturing and autonomous mobility.

27 South Australia's Hydrogen Action Plan Government of South Australia September 2019 28 South Australia is on the move to Integrate integrate hydrogen into energy systems hydrogen into our Secure wider energy system benefits of Identify any changes that might be hydrogen-led sector coupling needed to the National Energy Market Framework to ensure the efficient By coupling other sectors to our integration of hydrogen into energy decarbonised electricity grid, we can systems improve security, reliability and affordability energy system whilst reducing emissions. As lead legislator for national energy law reforms and a member of COAG, the South Domestic hydrogen use could accelerate the Action theme 5 Australian Government will work with other development of large-scale energy storage jurisdictions to identify any changes that in South Australia. The coupling of gas, might be needed to the national energy electricity and transport sectors is expected market framework to ensure the efficient to create wider benefits for the community Understanding the value of hydrogen in integration of hydrogen into energy systems and industry, with increased efficiencies and for the long-term interest of all consumers. our decarbonised energy system more flexibility. For example, a mine site could reduce Investigate hydrogen production and carbon emissions and increase its fuel use in remote areas of South Australia South Australia’s energy market is at the Electrolysers that produce hydrogen are also large highly flexible security by producing renewable hydrogen With significant remote regions not forefront of transitioning from fossil fuels loads that can be ramped up and down to balance electricity on-site for use in mining vehicles as well connected to the National Electricity supplied from renewable energy sources and provide ancillary grid as back-up power supply. Other South to renewable energy. Market, the South Australian Government is services that can contribute to power system security. Australian industries that could benefit from The Australian Energy Market Operator (AEMO) forecast that in responsible for overseeing the safe, reliable Renewable hydrogen can be used to diversify and reduce reliance improved fuel security and decarbonisation 2018-19 renewable energy production will comprise about 59.7 per and cost effective supply of electricity to on traditional liquid fuels such as petrol and diesel, enabling its include defence, agriculture, heavy cent of South Australia’s total power generation. South Australia's around 3,400 customers in 28 remote towns emissions-free use in a range of South Australian primary energy industries, space, as well as remote aspiration is to be a net 100 per cent renewable energy producer in across the state. sectors such as gas, electricity and transportation sectors. communities. the 2030s. Already being evaluated for the cost- The South Australian Government will Hydrogen offers an opportunity to ensure that the transition effectiveness of implementing high continue to lead and participate in projects, to cleaner energy is affordable and reliable for South Australian penetration renewable energy solutions such as the Hydrogen in the Gas Networks consumers. Once produced using renewable energy, hydrogen can — for example, the Hybrid kick-start project and the Future Fuels CRC, be blended into gas networks, used in transport, or reconverted Renewable Project — the South Australian that investigate the more efficient delivery of back to grid electricity when needed. Government will investigate the potential energy to customers through the optimised application of hydrogen electrolysis and use of energy networks and markets. fuel cell applications at sites to decarbonise existing diesel and LPG generators. Facilitate knowledge sharing from the South Australia leads National Hydrogen Strategy Kick-start Project on hydrogen in gas first hydrogen projects integrated into With world class mineral deposits being networks South Australia’s energy system discovered in more remote parts of South Australia, the government will work with South Australian Government has co- the minerals sector to investigate the At the December 2018 Council of South Australia, in conjunction with the invested in pilots and demonstrations that opportunities for hydrogen in remote Australian Governments (COAG) Energy Future Fuels CRC, is leading a project on will support familiarisation with hydrogen mining. Council meeting, the South Australian hydrogen in gas networks to identify production systems and their interactions Government along with all Australian technical and regulatory changes with energy systems. jurisdictions accepted a proposal from required to enable blending up to 10 per Australia’s Chief Scientist Dr Alan Finkel to cent hydrogen into the domestic gas These learnings will help industry, develop a National Hydrogen Strategy for distribution network. market bodies and governments better 2020-2030. understand the services and value hydrogen This work included a review of technical technologies provide to energy systems, COAG Energy Council has established a standards, safety and technical and inform future investment decisions. As Working Group to carry out the Strategy’s regulations, the national gas market they become available, the South Australian development across six work streams that regulatory framework and examines Government will facilitate the sharing of key consider: hydrogen exports; hydrogen for matters relating to gas quality, suitability learnings with relevant stakeholders. transport; hydrogen in the gas network; of pipeline materials, blending location hydrogen for industrial users; hydrogen to and impacts on network capacity and support electricity systems; and cross- metering. cutting issues.

29 South Australia's Hydrogen Action Plan Government of South Australia September 2019 EDL Coober Pedy Renewable Hybrid Project 30 Acknowledgement of Country We acknowledge and respect the Traditional Custodians whose ancestral lands we live and work upon and we pay our respects to their Elders past and present. We acknowledge and respect the deep spiritual connection and the relationship that Aboriginal and Torres Strait Islander people have to Country. We also pay our respects to the cultural authority of Aboriginal and Torres Strait Islander people and their nations in South Australia, as well as those across Australia.

EDL Coober Pedy Renewable Hybrid Project

Further information

Department for Energy and Mining South Australia Trade and Investment Offices

T: +61 8 8429 2722 Japan and Korea Singapore E: [email protected] Sally Townsend, Commissioner, South Sonya Madramootoo, A/Manager, South www.hydrogen.sa.gov.au Australia - Japan and Korea East Asia T:+81-3-52323570 T:+61(0)477-386-958 China United Kingdom Xiaoya Wei, Country Director - China James Mraz, Agent-General for South T:+86-138-0197-2961 Australia T:+44-20-7520-9100