Adelaide hydrogen hub wins federal funding to accelerate production

The federal government has committed $240 million to the Adelaide-based Hydrogen Hub development as part of Australia's National Hydrogen Strategy, positioning South Australia as the primary centre for green hydrogen production and export in the national hydrogen program.

The funding will support the construction of electrolysis infrastructure at a dedicated industrial site near Port Adelaide, capable of producing up to 40,000 tonnes of green hydrogen annually using renewable electricity from the state's now-surplus renewable energy capacity. The facility will be designed for export of green hydrogen as ammonia to Japanese and Korean industrial customers who have signed conditional offtake agreements subject to the project achieving final investment decision.

South Australian Energy Minister Tom Koutsantonis said the federal funding commitment removed the key financing barrier to the project's final investment decision, with the state government having already committed land, grid connection facilitation, and a regulatory pathway that streamlines the environmental assessment for projects of this type.

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