South Australia’s bold plan to build a green hydrogen electrolyzer and power plant at Whyalla steel city has closed bids, with numerous hopefuls vying for the chance to implement their technological solutions.
The state government’s proposal to invest over $600 million in a 250MW green hydrogen electrolyzer and a 200MW green hydrogen power plant represents a unique opportunity.
Due to the overwhelming response, the deadline for proposals was extended from February to mid-March. Some observers were surprised by the plan, particularly the hydrogen power plant, which isn’t generally considered the most efficient use for green hydrogen.
However, South Australia leads the world in the share of wind and solar power in its grid, averaging over 70% in the past 12 months and over 80% from October through February. The state often exceeds 100% renewable energy, with excess energy either exported to Victoria or curtailed for network or economic reasons.
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The Whyalla electrolyzer and power plant will benefit from low-cost inputs from this surplus as part of South Australia’s efforts to complement large battery deployments and other long-term storage with reliable backup. The green hydrogen power plant would be Australia’s first and likely the largest of its kind globally.
