Doubt cast over South Australia's $600 million hydrogen plant pledge amid steelworks uncertainty

ABC NEWS (Australia)

Doubt has been cast over the South Australian state government’s $600 million pledge to build a hydrogen power plant in Whyalla. The Premier stopped short of guaranteeing the project today, saying the money could be redirected if the steelworks owner doesn’t invest in the site.

Transcript

00:00A clear election promise made in opposition.

00:06Our policy all before 2025 will deliver a 250 megawatt electrolyser that will turn water

00:15into hydrogen.

00:16But the Premier today tying the future of its 600 million dollar plan to a commitment

00:21of the Wyale Steelworks owner GFG Alliance to going green.

00:26If we produced a hydrogen facility without the steelworks being a customer of the hydrogen

00:30because GFG hasn't invested in the steelworks or worse steel found itself in even more challenging

00:36financial circumstances than it is currently in then we put ourselves in a precarious position.

00:40In Parliament today the Premier raising concerns over GFG's capacity to invest in upgrades

00:46to make the green dream a reality.

00:48The state government is owned a substantial sum of funds principally through being in

00:54arrears with royalty payments that number is in the order of tens of millions of dollars.

01:01As the day went on politicians tried to downplay the vulnerability of the plant's future that

01:06it rely on the existence of the steelworks as its major customer.

01:10So those two things run together and we continue to maintain major efforts to pursue those

01:18two different initiatives getting the steelworks back on track and pursuing our hydrogen jobs

01:22plan.

01:23I cannot deduce from my remarks or the remarks of anyone within the government that we are

01:28not committed fully to expending a huge amount of money in Wyale.

01:34The state government's patience with the steelworks quickly running out.

01:40You know we can't let this situation go on in perpetuity.

01:43The embattled steelworks has faced other recent challenges including problems with its blast

01:48furnace and job losses.

01:50Peter Mallinowskas' green hydrogen dreams have turned into a green nightmare.

01:55In a statement GFG says it remains resolute in its commitment to Wyale and the transition

02:00to green iron and steel.

02:02They say over eight years Liberty has paid hundreds of millions of dollars in mining

02:06royalties and is continuing to work with its partners as it navigates current challenges

02:11facing the industry.

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