The South Australia government is planning new legislation to accelerate local hydrogen development, as reported by Reuters on May 31. The new law aims to license and regulate hydrogen production in the state and will apply to all forms of hydrogen, including green hydrogen produced from renewable sources, and blue hydrogen produced from non-renewable sources with carbon capture implemented in the production process. The new regulation is in keeping with South Australia’s goal of having 100% of its energy generated from renewables by 2030 and becoming one of the world’s top clean hydrogen providers.
Australia revealed its national goal to become carbon neutral by 2050 in October 2021 and focused on investments in hydrogen energy, low-carbon transitions in the steel and aluminum sectors, and carbon capture and storage technologies to achieve its goal. In addition, Australia plans to cut carbon emissions by 30% to 35% by 2030, compared to 2005 levels. To boost local hydrogen production, the South Australian state government has agreed to develop a 440-megawatt (MW) green hydrogen plant with support from Trafigura, a Swiss commodities trading business. The project is expected to cost AUD750m (USD535.9m) and will begin construction in 2023. Other Australian states, such as New South Wales, also aim to boost hydrogen development. New South Wales has approved a hydrogen strategy that may reduce green hydrogen production costs dramatically while freeing up USD70m in government funding for new green hydrogen centers in the regions of Illawarra and Hunter.