South Australia's Hydrogen Action Plan - www.hydrogen.sa.gov.au - Renewables SA
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South Australia'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
“ Our vision is a future in which hydrogen provides economic benefits to Australia through export revenue and new industries and jobs, supports the transition to low emissions energy across electricity, heating, transport and industry, improves energy system resilience and increases consumer choice. ” Dr Alan Finkel Australia’s Chief Scientist Briefing paper: Hydrogen for Australia’s Future Presented to COAG Energy Council in August 2018 1 South Australia's Hydrogen Action Plan Government of South Australia September 2019
Table of contents Foreword3 Renewable hydrogen pathways 5 South Australia's renewable hydrogen potential 7 South Australia's hydrogen story so far 9 Renewable hydrogen export opportunities for South Australia 11 Hydrogen projects in South Australia 13 • Port Lincoln Hydrogen and Ammonia Supply Chain Demonstrator 13 • Hydrogen Superhub at Crystal Brook Energy Park 14 • Hydrogen Park South Australia 15 • University of South Australia's Renewable Energy Testbed 17 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 • Action theme 5 — Integrate hydrogen into our energy system 29 Front cover image: Starfish Hill Wind Farm, South Australia's first wind farm built in 2003 near Cape Jervis on the tip of the Fleurieu Peninsula Artist’s impression of Hydrogen Park South Australia, a 1.25MW electrolyser, blending equipment and tube and trailer facility. 2
Foreword South Australia is ideally Hydrogen production presents additional suited to seize the huge benefits for regional South Australian communities, where projects are likely to be opportunities created by based. the emerging global market for hydrogen and its many Our expectation is that during the 2030s, South applications for energy Australia will generate more clean power than generation, storage and required for local use, setting us up to become a transport. national and global force in clean energy. Hydrogen allows the world to rethink ways to Now is the time to step up the development of generate and store energy, power transport a hydrogen economy. While South Australia is fleets and heat homes. Hydrogen fuel cells can not alone in setting its sights on developing a power trains, trucks and buses to replace diesel hydrogen economy, the State has a first mover as a fuel and hydrogen can supplement and advantage. replace natural gas in domestic gas networks We believe we can deliver green hydrogen to that warm our homes and cook our meals. our trading partners to meet their ambitious The Council of Australian Governments Energy plans. We are already working with the Council’s National Hydrogen Strategy Working Commonwealth and all State and Territory Group has already identified hydrogen as Governments to develop a National Hydrogen Australia’s next multi-billion export opportunity. Strategy for 2020-2030. This Hydrogen Action Modelling for the Australian Renewable Energy Plan will help South Australia be a supplier of Agency has forecast Australian hydrogen choice for green hydrogen in Australia. exports could contribute $1.7 billion and 2,800 The Hydrogen Action Plan also aligns with the jobs to the national economy by 2030. Our Marshall Liberal Government’s Growth State aim is to position South Australia to attract a Plan, which aims to sustain the State’s annual substantial share of that potential economic economic growth rate at 3 per cent. activity. Our new trade offices in North East Asia, China With more than 50 per cent of the State’s energy and the United States and our long-standing mix generated through renewable sources, new Agent-General’s office in the United Kingdom interconnection and storage technologies such provide platforms to promote our hydrogen as hydrogen will support South Australia to capabilities to international markets and facilitate become a net 100 per cent renewable energy trade and investment partnerships. generator during the 2030s. We can then Beginning with Australia's largest electrolyser capture significant economic benefits from coming online in 2020 in metropolitan Adelaide, renewable energy exports. we are determined to unlock South Australia’s With more than $7 billion attracted in clean renewable hydrogen potential. energy generation and storage, international investors already regard South Australia as an attractive investment destination. Through Hon Steven Marshall MP the production of renewable hydrogen, South Australia can help meet the world’s energy Premier of South Australia demands while reducing emissions at home and abroad. The hydrogen economy is a further step in the Hon Dan van Holst Pellekaan MP 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 investment in South Australia. 3 South Australia's Hydrogen Action Plan Government of South Australia September 2019
South Australia has a proud South Australia has an record as ‘the State of opportunity to progress the Science’. development of renewable Research and education institutions across hydrogen projects at scale the state deliver world class STEM (Science, to meet the significant Technology, Engineering and Maths) future hydrogen export education, research and innovation and work requirement, in particular to collaboratively with industry sectors and the Asia-Pacific region. government agencies to translate innovation to With hydrogen production technologies from deliver ‘new to the world’ products, processes renewable energy and water already proven, and services. the focus is now on achieving significant cost South Australia has been at the forefront of reduction through production at scale within energy innovation that has fuelled a remarkable a comprehensive regulatory framework. South increase in renewable energy generation to over Australia is well positioned for this next stage. 50% of total energy generation in the state. This will need close national and international South Australia’s successful implementation engagement across the spectrum of renewable of the world’s largest lithium-ion battery hydrogen activities. Once implemented, the and autonomous vehicle trials at the Tonsley actions outlined in this Plan will enable South Innovation District are recent examples that Australia to become a national and global force showcase the capacity of industry to harness in emission reduction as part of a global clean innovation to drive the development of a STEM- energy transition. enabled future workforce and deliver economic South Australia was the first Australian impact. jurisdiction to work with industry to develop a Innovation and Translation Neighbourhoods plan to accelerate the transition to a hydrogen such as those at Tonsley, Mawson Lakes and economy through the release of the Hydrogen Lot Fourteen in the heart of Adelaide represent Roadmap for South Australia in 2017. sites where industry leaders can also access key Subsequent to this, the State provided support information on the role of frontier technologies, for four renewable hydrogen projects. The such as machine learning, quantum first of these projects will be in production in communication, automation, sensors and new mid-2020, delivering a blend of hydrogen and materials. Access to this information supports natural gas to a local residential community in future-focussed industry sectors to be resilient metropolitan Adelaide – an Australian first for its and compete in changing world markets. scale and nature. These Neighbourhoods are also ‘sticky for This Action Plan is a major milestone for the talent’, attracting global innovators and are continued development of a significant, clean, where the next generation of innovation leaders safe and economically beneficial hydrogen value work to solve industry problems to provide a chain in South Australia leading edge for business partners. Against this backdrop, South Australia is positioned as an international leader for the development of renewable or ‘green’ hydrogen production Terry Burgess to underpin a hydrogen economy built on Co-chair, South Australian Government's domestic use and a significant global export Hydrogen Economy Steering Committee potential Professor Caroline McMillen Chief Scientist of South Australia 4
Renewable hydrogen 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 transport for the optimised supply of carbon-free energy to mining, renewable hydrogen industry. 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. Utility scale solar PV Storage The hydrogen is stored under pressure before being transported for use. Wind Electrolyser An electrolyser uses electricity to separate Water water (H2O) into hydrogen (H2) and Oxygen (O2). If renewable energy is used to power the electrolyser, renewable or ‘green’ hydrogen is produced. Rooftop solar PV and battery storage 5 South Australia's Hydrogen Action Plan Government of South Australia September 2019
Export Industry and agriculture 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). Vehicles Fuel cell electric vehicles including cars, buses, trains, trucks, forklifts, motorcycles and others are powered by hydrogen. Transportation Natural gas network Hydrogen can be stored in the natural gas network, and used to lower carbon emissions. Pipeline Electricity Hydrogen can be converted back to electricity by using a fuel cell or gas turbine. This can help supply the network during times of high demand. 6
South Australia's renewable hydrogen potential 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 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 South Australia South Australia renewable energy generation projects. 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. South Australia currently has... Over $7bn invested in renewable energy with over $20bn in the 1 in 3 homes with pipeline rooftop solar The worlds biggest A world class lithium-ion battery regulatory regime 14 GW of renewable 22 large scale wind energy generation farms currently and storage operating projects in the pipeline 7 South Australia's Hydrogen Action Plan Government of South Australia September 2019
Coober Pedy " Leigh Creek " Woomera " Ceduna " Port Augusta " Whyalla " " Port Pirie Burra " Wallaroo " Renmark " Port Lincoln Adelaide " Optimal location for: Energy Production " Wind farm Existing and under development solar farms Predicted wind speed above 7.31 m/sec. Victor Solar farm Existing and under development wind farms Harbor 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 Wind farm and/or Solar farm Predicted wind speed above 7.31 m/sec. and DNI greater than 20.5 MJ/m2 Energy Production Existing and under development solar farms ec. Existing and under development wind farms Desalination plant ec. Transmission Line Moun " Gamb 8 ec.
South Australia's hydrogen story so far... November 2018 Hydrogen Research and Development in South Australia report released Identifying existing hydrogen research and development December 2018 capabilities opportunities. COAG Energy Council supports development of a National Hydrogen Strategy Energy ministers from all Australian jurisdictions accept a proposal from Australia’s Chief Scientist Dr Alan Finkel to June 2019 develop a National Hydrogen Strategy for 2020-2030. Hydrogen in gas networks report Government of South Australia initiates kick-start report on 10% hydrogen in domestic gas networks for input to final National Hydrogen Strategy. September 2019 International Conference on Hydrogen Safety 2019 held in Adelaide The International Association for Hydrogen Safety (HySafe) and the Government of South Australia host the 8th conference. South Australian Hydrogen Export Modelling Tool announced Commencement of a landmark study of existing and potential infrastructure required for an international scale renewable hydrogen export value chain. 9 South Australia's Hydrogen Action Plan Government of South Australia September 2019
May 2017 Government of South Australia 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. and over $25 million in loans committed to renewable hydrogen projects Government of South Australia commits funding to 4 hydrogen projects. December 2016 Adelaide hydrogen vehicle showcase Hyundai and Toyota showcase hydrogen vehicles in Adelaide CBD for leaders and the public. April 2018 Government of South Australia joins Future Fuels Cooperative Research Centre (CRC) 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 Government of South Australia. South Australia is the first Australian state to publish a hydrogen strategy. South Australian Green Hydrogen Study released Commissioned by the Government of South Australia, July 2019 the study identifies the cost and feasibility of producing The Government of South renewable hydrogen in SA. Australia joins Green Ammonia Consortium Government of South Australia An independent association attendance at the 2017 under Japanese law with International Conference on membership open to global Hydrogen Safety in Hamburg entities with an interest in green Adelaide announced as the host (renewable) ammonia. city for 2019. 10
Renewable hydrogen export opportunities for South Australia Nations, regions 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. 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 • 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 reducing greenhouse gas emissions by 27 million to 300,000 tonnes a year in 2030, targeting carbon- tonnes by 2040. free hydrogen use as part of its future picture. • Increasing production and use of hydrogen fuel cell • Developing international hydrogen supply chains electric vehicles, including 6.2 million passenger including Australia, such as the development and vehicles, 40,000 buses and 1,200 refuelling stations by demonstration of a liquefied hydrogen supply chain 2040. by the mid-2020’s. • Increasing production and use of fuel cells for power • Targeting the use of fuel cell electric vehicles generation, including a targeted 15GW for power including 800,000 passenger cars, 12,000 buses and generation and 2.1 GW for households by 2040. 10,000 forklifts by 2030. 11 South Australia's Hydrogen Action Plan Government of South Australia September 2019
Korea Japan China Singapore Singapore In the first quarter of 2019, the Singapore Prime Minister’s Office issued a tender for a consultancy study on the potential for hydrogen imports and downstream applications for Singapore. Singapore is particularly interested in replacing liquefied natural gas for fuelling its power plants with alternatives such as hydrogen to eliminate 60 per cent of its South emissions. Australia 12
Hydrogen projects in South Australia Port Lincoln Hydrogen and Ammonia Supply Chain Demonstrator The Hydrogen Utility™ (H2U) is a generation to the grid during periods of low specialist developer of hydrogen wind or solar output. The project has capacity infrastructure solutions for sustainable to provide a truly self-contained solution to mobility and renewable energy storage firming renewable energy supply within the applications. South Australia grid. H2U is developing a facility integrating Considered one of the most prospective "South Australia more than 30 MW in water electrolysis and chemical carriers of hydrogen, green is at the forefront distributed ammonia production, near ammonia - a chemical compound of nitrogen and renewable hydrogen - is also a potential Port Lincoln in South Australia. The South of both renewable Australian Government has provided $4.7 fuel for large-scale power stations, making it generation million through a grant and additional loan an attractive export opportunity. and hydrogen funding to deliver the $117.5 million project. Along with the Government of South 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 the local agriculture and industry sectors. comprises of more than 70 companies and institutions, the Commonwealth Scientific to be able to develop This is a globally significant demonstration and Industrial Research Organisation (CSIRO) our project in this project for the emerging hydrogen energy and the Australian Trade and Investment important market" sector, being one of the first-ever commercial Commission. plants to produce carbon dioxide (CO2)-free In August 2019, H2U executed an agreement green ammonia from intermittent renewable - Dr Attilio Pigneri, CEO H2U resources, and to demonstrate the adoption with Australian iron ore mining and exploration company Iron Road Limited to of green hydrogen across multiple value collectively develop a commercialisation chains. pathway for a multi-user, multi-commodity The plant will also feature two 16 MW open- deep water port at the proposed 1,100 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 Cape Hardy Stage 2 Capesize Port. Image courtesy of Iron Road. 13 South Australia's Hydrogen Action Plan Government of South Australia September 2019
Hydrogen Superhub at Crystal Brook Energy Park Neoen Australia is an Independent The South Australian Government provided 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. 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 Neoen 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 to store up to 100 MW/129 MWh of energy. power service in Australia. a direct transmission line to a nearby port for The Crystal Brook Energy Park development The South Australian Government has potential export. is a $500 million renewable energy project awarded a $1 million grant to Neoen The Hydrogen Superhub has significant that combines storage, solar and wind, to conduct a study on the technical 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 Brook in South Australia’s Mid-North. The production facility at the Crystal Brook hydrogen at a competitive price. At the time park is a 275 MW renewable energy facility Energy Park. The proposed 50 MW Hydrogen of awarding funds to Neoen for the feasibility with up to 125 MW of wind generation Superhub would be the largest co- study, the South Australian Government comprising 26 turbines, 150 MW of solar PV located wind, solar, battery and hydrogen also committed to provide a further $4 and 130 MW/400 MWh of battery storage production facility in the world, with the million grant and $20 million in loans should with a purpose built sub-station to deliver potential to produce about 25,000 kilograms the project proceed to financial close and the power back into the South Australian of hydrogen a day using 100 per cent construction. grid. renewable energy. "The Crystal Brook Energy Park "The introduction of hydrogen in South Australia aims to change as part of a next generation of the role of renewables, from just clean energy storage technologies providing power when available to is highly prospective for South providing firm power 24-hours a Australia’s renewable energy day. This is essential for long-term industry." sustainability and it will be the first of its kind to offer that type of - Garth Heron, Head of Development, Neoen power service in Australia. Australia The Hornsdale Power Reserve developed and owned by Neoen, built by Tesla at Neoen’s 309MW Hornsdale Wind Farm in South Australia 14
Hydrogen Park South Australia Adelaide-based Australian Gas distribution network. It will also show how Networks (AGN), part of the Australian integrating electrolysers into the electricity Gas Infrastructure Group (AGIG), owns networks can support energy stability, as gas distribution assets across Australia, more renewable electricity generation including in South Australia. capacity comes onto the grid. 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 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 Government. The proposed facility comprises approvals and procuring land. Community a 1.25 MW Siemens proton exchange and stakeholder consultation on the project membrane electrolyser, the largest of its kind began in July 2019. installed in Australia. Hyp SA is considering installation of tube- Based at the Tonsley Innovation District in trailer filling facilities as an expansion 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 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 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 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 gas network. Customers receiving the 5 per 100 per cent hydrogen conversion. cent renewable gas blend will not notice any Fabrication of Hydrogen Buffer Storage Vessel AGN is also actively working with Australian difference about the quality of gas received for the Hydrogen Park South Australia Project at Governments, including the South Australian Pipetech in Adelaide and are not required to make any change to 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 The project will demonstrate the feasibility of hydrogen blending, and 100 per cent blending hydrogen into the South Australian hydrogen conversion on Australian towns, 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
"We are delighted that South Australia will lead the way with this technology. Hydrogen Park SA provides an opportunity to develop an Australian-first integrated hydrogen project that paves the way for the commercial deployment of a hydrogen economy. "And importantly, it propels South Australia’s status as a leader in renewable technology and a first mover in hydrogen" - Ben Wilson, Chief Executive Officer, Australian Gas Networks The Main Assembly Building (MAB) of the Tonsley Innovation District 16
University of South Australia's Renewable Energy Testbed UniSA’s Mawson Lakes campus will be 2015, launching the Research Node for Low transformed into a national testbed of Carbon Living, the State’s premier hub for renewable energy technologies through multidisciplinary, industry-driven research, 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 storage. ground-mounted solar panels, and thermal The project – supported by a $3.6 million energy storage. Once completed in 2020, it grant from the South Australian Government will increase the availability of carbon-free – aims to produce data to support multi- renewable energy, reducing pressure on the disciplinary research projects (such as local electricity network. optimising performance, economics, and By partnering with Australian renewable energy and emissions) in hydrogen, battery energy companies, UniSA expects the facility storage and solar technologies. Energy to provide more than 250 MWh of electrical produced will supplement campus needs storage annually, reducing the peak electrical especially at periods of peak demand. load by 43 per cent, cutting its emissions by The project is at the forefront of UniSA’s 35 per cent and making renewable energy strategy to reduce its carbon footprint and available on demand. embrace renewable energy technologies. The UniSA expects the project to achieve annual campus underlined its green credentials in energy savings of about $470,000. "South Australia is already leading "It will bring a host of new jobs the world in the transition to and investment opportunities to renewable energy. This project the State as well as inspiring and will enhance that reputation and developing the next generation of also show other organisations how renewable energy professionals." they can move towards energy independence and contribute to a - Dr Stephen Berry, Renewable Energy and carbon neutral future." Decarbonisation Manager, UniSA - Professor David Lloyd, UniSA Vice Chancellor Solar PV array for University of South Australia's Renewable Energy System at its Mawson Lakes campus. 17 South Australia's Hydrogen Action Plan Government of South Australia September 2019
Australia's National Hydrogen Strategy At the December 2018 Council of Australian Governments (COAG) Energy Council meeting, Energy Ministers from all Australian jurisdictions accepted a proposal from Australia’s Chief Scientist Dr Alan Finkel to develop a National Hydrogen Strategy for 2020-2030. South Australia is represented on the COAG Energy Council by The Honourable Dan van Holst Pellekaan MP, Minister for Energy and Mining. South Australia is contributing to the development of a National Hydrogen 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 gas networks. Australia’s National Hydrogen Strategy is scheduled to be presented to Energy Ministers for approval in December 2019. South Australia’s Hydrogen Action Plan will be the primary mechanism through which South Australia contributes to the implementation of a future National Hydrogen Strategy, with a focus on being a supplier-of-choice for certified renewable hydrogen. "I am confident that Australia can play a part in the development of 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 18
South Australia's Hydrogen Action Plan Implementation Key performance indicators to be monitored by the Hydrogen Economy Steering Committee: Facilitate Establish a world • Annual volume of hydrogen investments class regulatory produced in SA in hydrogen framework • Annual volume of hydrogen exported overseas from SA infrastructure • Cumulative capital investment in hydrogen infrastructure Springboard from first Deliver global best-practice renewable hydrogen hydrogen regulations that are • Construction and ongoing jobs production in 2020 towards a simple and efficient, building created hydrogen economy community and investor confidence Actions: Actions: • Deliver the South Australian • Efficient, effective regulations Hydrogen Export Modelling Tool supported by Hydrogen Regulatory to inform the establishment of Working Group renewable hydrogen export supply chains • Certification for South Australian renewable hydrogen • Facilitate the development of hydrogen infrastructure projects in • Advocating for internationally South Australia harmonised codes and standards • Develop a plan for the cost-effective • Educating the South Australian application of hydrogen in domestic community and industry on primary energy sectors hydrogen technologies for the future • Incorporate hydrogen into long- term infrastructure planning 19 South Australia's Hydrogen Action Plan Government of South Australia September 2019
Vision: South Australia leverages its wind, sun, land, infrastructure and skills to be a world-class renewable hydrogen supplier. Objective: Scale-up renewable hydrogen production for export and domestic consumption Deepen trade Foster innovation Integrate hydrogen relationships and and workforce skills into our energy supply capabilities development system Establish robust relationships Accelerate hydrogen Understanding the value of and value chains to supply innovation based on solid hydrogen in our decarbonised renewable hydrogen to new academic research and energy system and emerging trade partners industry partnerships, and ensure South Australia has the workforce skills, capability and capacity to deliver Actions: Actions: Actions: • Promote renewable hydrogen • Leverage current and future • Secure wider energy system through its global network of trade hydrogen projects for training and benefits of hydrogen-led sector and investment offices innovation coupling to our renewable energy • Support inbound and outbound • Skilling South Australia to support • Facilitate knowledge sharing trade and investment missions the expansion of new industries and from the first hydrogen projects a hydrogen economy integrated into South Australia’s • Engage with international hydrogen energy system consortia • Support and participate in Future Fuels Cooperative Research Centre • Identify any changes that might • Facilitate hydrogen-related foreign be needed to the National Energy direct investment, business • Support and participate in the Market Framework to ensure the migration and business expansion Australian Hydrogen Centre efficient integration of hydrogen into energy systems • Investigate hydrogen production and use in remote areas of South Australia 20
Facilitate investments in hydrogen infrastructure Action theme 1 Springboard from first renewable hydrogen production in 2020 towards a hydrogen economy South Australia’s key challenge in While building up to export-scale production is a long-term realising a hydrogen economy is scaling proposition, South Australia will methodically capitalise on its comparative advantages and build upon its existing investments up large-scale renewable hydrogen in renewable hydrogen production infrastructure. production to export-capable volumes as part of a sustainable value chain. This will start with Australia’s largest electrolyser planned to be operational in metropolitan Adelaide in 2020. From South Australia's first demonstration projects to building scale 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 export projects per unit of renewable hydrogen. industry and regulators, grow community awareness and understanding, and Learnings: develop workforce skills. - industry knowledge - innovation & workforce development The projects are also key to establish Early export - community awareness Project Scale 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 collaboration in developing a renewable hydrogen value chain. First renewable H2 production 2020 mid-2020’s Time 21 South Australia's Hydrogen Action Plan Government of South Australia September 2019
South Australia is on the move to 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 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 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 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 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 trade and investment offices to inform key decarbonising other primary energy use. considerations such as locations for hydrogen production and conversion, volume of supply Incorporate hydrogen into long-term potential, and the landed cost of renewable infrastructure planning hydrogen from South Australia. Infrastructure SA is an independent agency Facilitate the development of hydrogen responsible for framing South Australia’s 20- infrastructure projects in South Australia year Infrastructure Strategy, which will inform a Capital Intentions Statement – a five-year The South Australian Government has rolling annual plan that will identify specific co-invested more than $17 million in grants major projects to be undertaken as a priority. and $25 million in loans to four renewable hydrogen projects. Infrastructure SA has been engaged to 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 coordinate the State’s efforts in scaling up its hydrogen industry. Adelaide hydrogen vehicle showcase in Victoria Square, Adelaide CBD 22
Establish a world-class regulatory framework Action theme 2 Deliver global best-practice hydrogen regulations that are simple and efficient, building community and investor confidence As one of the top regulatory regimes in Australian jurisdictions on regulatory standards and continues to the world for tight and shale gas, South contribute to the development of Australia’s National Hydrogen Strategy for 2020-2030. Australia has a proven record of providing effective, transparent regulatory South Australia’s regulatory expertise, close collaboration with frameworks that facilitate economic the national and international hydrogen communities and our growth. focus on safety provides a world-leading hydrogen regulatory regime designed to meet the needs of investors and the The South Australian Government, through the Council of community. Australian Governments (COAG), works closely with other International Association for Hydrogen Safety The South Australian Government is a financial member of the International Association for Hydrogen Safety (“HySafe”) and has developed close links with hydrogen safety experts operating across the world. 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
South Australia is on the move to establish a world-class regulatory framework… Efficient, effective regulations supported Advocating for internationally 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 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. includes first responders and all other workplace safety, environmental, planning and Working in close collaboration with our 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. awareness of hydrogen across government to ensure regulatory gaps are identified and Educating the South Australian addressed. It will continue to provide advice community and industry on hydrogen to proponents of hydrogen projects to ensure technologies for the future compliance with existing requirements. Public understanding and support for 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 Renewable or ‘green’ hydrogen generally will work proactively with the community and refers to hydrogen produced using electricity industry to increase knowledge and support from renewable sources. This is distinct from for a growing green hydrogen industry. ‘brown’ or ‘grey’ hydrogen, which generally means hydrogen produced using fossil fuels that emit carbon into the atmosphere. Customers in both Australian and overseas markets seeking to reduce emissions recognise 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 guaranteed by a scheme that meets market requirements. The South Australian Government will continue to work with Australian and international jurisdictions, including through the National Hydrogen Strategy, to develop an appropriate mechanism to guarantee the origin of South Australian hydrogen production for domestic use and export. 24
Deepen trade relationships and supply capabilities Action theme 3 Establish robust relationships and value chains to supply renewable hydrogen to new and emerging trade partners By leading the nation in the uptake Attracting investment and capturing a greater share of export of renewable energy and pioneering markets is also the focus of the South Australian Growth Agenda led by the Department for Trade, Tourism and Investment. grid-scale energy storage solutions, international companies have already New free trade agreements with our regional partners and the begun to recognise South Australia as Commonwealth Government’s commitment to developing a a destination for sustainable energy National Hydrogen Strategy also supports South Australia’s investment. aim of leveraging its advantages to open up new market opportunities. Hydrogen provides a further opportunity to build on the existing investment and the State’s established record as a reliable supplier of commodities and adopter of new technologies. South Australian hydrogen engagements in the Asia-Pacific November 2018: Minister for Trade, March 2019: His Excellency the Governor August 2019: an inbound delegation Tourism and Investment the Hon. David the Honourable Hieu Van Le AC and led by Representative Lee Won-Wook of 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 Mission 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
South Australia is on the move to deepen its trade relationships and supply 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 opening five new overseas trade and share information and cooperate on the investment offices in strategic locations scale-up of the global hydrogen production 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. an interest in green (renewable) ammonia is South Australia’s trade office network will an example of relationship building South also work alongside the South Australian Australia is pursuing. Agent General’s Office in London and 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 markets, and to overseas investors looking Securing overseas investment in new for opportunities in South Australia. export-capable industries such as hydrogen will be a major contributor to achieving Support inbound and outbound trade the South Australian Government’s State and investment missions Growth Plan of accelerating annual gross The South Australian Government has state product growth to 3 per cent. increased support to attract major events The Department for Trade, Tourism and and business conferences to Adelaide that Investment is at the forefront of securing provide a drawcard for overseas investors new investment in growth industries, and and buyers, for example the International the hydrogen economy is one of the key Conference on Hydrogen Safety in Adelaide export-oriented sectors that will contribute Bottom left: Representative Won- in September 2019. 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 the H2Korea delegations visit to the industrial supply chain to offer the capability Outbound Trade and Investment Missions Tonsley Innovation District, Adelaide and workforce to support the multiple that allows local companies to align their Bottom right: His Excellency the facets of a growing hydrogen economy, overseas engagement with target hydrogen Governor Hieu Van Le AC, Minister from the production of hydrogen (and other for Trade, Tourism and Investment markets. 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 power) and its distribution, across both the open the North East Asia Trade and energy and mobility sectors. Investment Office 26
Foster innovation and workforce development Action theme 4 Accelerate hydrogen innovation based on solid academic research and industry partnerships, and ensure South Australia has the workforce skills, capability and capacity to deliver South Australia combines traditional The rapid emergence of a hydrogen industry will create demand manufacturing capabilities in defence for skilled workers and tailor training programs that meet the demand for new specialist skills and promote opportunities for and automotive industries with emerging STEM students and graduates, particularly in regional areas where skills in space and energy sectors to create projects are likely to be based a thriving, vibrant innovation community. South Australia’s three main universities are all active in hydrogen and energy related research across the Centre for Energy Technology (University of Adelaide), the Institute for Nanoscale Science and Technology (Flinders University) to the Future Industries Institute (University of South Australia). Innovation and Translation neighbourhoods 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
South Australia is on the move to foster innovation and workforce development… Leverage current and future hydrogen Support and participate in Future Fuels 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 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 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 Tonsley Innovation District and H2U’s the Centre’s research during its seven-year South Australian Renewable Hydrogen lifetime. and Ammonia Supply Chain Demonstrator plant to provide a platform for rapid testing, Support and participate in the Australian development and commercial expansion of Hydrogen Centre hydrogen related projects. The South Australian Government has Skilling South Australia to support committed to support the establishment the expansion of new industries and a of the Australian Hydrogen Centre led by hydrogen economy Australian Gas Infrastructure Group. The South Australian Government is Building upon the learnings from Hydrogen committed to supporting an additional Park South Australia at the Tonsley 20,800 apprentices and trainees over four Innovation District, the proposed Australian years through the Skilling South Australia Hydrogen Centre will share knowledge 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 state’s skills needs both now and in the networks as a step toward 100 per cent future. conversion to hydrogen of the South Australian and other Australian jurisdictional Government will work with industry, distribution networks. vocational education and training provides 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 to support the hydrogen sector. 28
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