The state of South Australia (SA) has chosen a consortium comprising Canadian-owned infrastructure group Atco and German firm Linde's subsidiary BOC as preferred contractors for a 250MW hydrogen facility.
The tender for a 250MW hydrogen plant — which the SA government says will be the world's biggest when built — 200MW hydrogen-fired power station and on-site storage forms the largest component of the state's A$593mn ($375mn) Hydrogen Jobs Plan, which aims to develop the state's renewables-rich, industrial Spencer Gulf region. SA has high penetration in the renewable power generation sector but typically relies heavily on imports from the eastern states, as well as gas-fired generators to stabilise its grid.
The Atco-BOC tender's end-to-end, solution-encompassing design and build experience in electrolysers, generators, on-site storage and operational expertise stood out among the 29 bids, the SA government said. The consortium has signed an early contractor involvement agreement with SA to conduct detailed project and engineering design, procure critical equipment, finalise contracting arrangements and provide cost estimations for hydrogen-operated, fast start-up turbines.
"Atco is delighted to be selected as a consortium partner for the design of the world's biggest hydrogen plant that will unlock decarbonisation opportunities and enhance prosperity for generations," Atco Australia chief executive John Ivulich said on 22 October.
SA energy infrastructure firm Epic Energy has also signed an agreement to develop an integrated pipeline and storage scheme for hydrogen production expansion and industrial offtake.
SA first announced it would issue a tender for the project through its Office of Hydrogen Power in 2022, with the government targeting first hydrogen in 2025. If completed, the facility would be larger than the US state of Utah's Advanced Clean Energy Storage project, which will produce up to 100 metric tonnes/d of hydrogen from 220MW of zero-carbon-powered electrolysis.
SA's major private employer is the 1.2mn t/yr Whyalla steel works and 9mn t/yr iron ore export business, owned by UK-based GFG Alliance, with the state Labor government hopeful that low emissions steel and iron pellet production will follow the development of a hydrogen sector.
SA also intends to develop the hydrocarbon export terminal at Port Bonython, 16km east of Whyalla into a large-scale hydrogen export terminal
Perth-headquartered Atco scrapped a planned 4 t/d green hydrogen plant in Western Australia state in July, saying the remote location of the 10MW electrolyser made the project unviable. The firm operates the 180MW Osborne gas-fired power plant near SA's capital city of Adelaide and the 86MW Karratha Power Station in Western Australia.
BOC produces hydrogen at its Bulwer Island site in Queensland state via a 220KW solar-powered electrolyser, sold through a refuelling station located at BP's Port of Brisbane truck stop.
