Water supply scuppers South Australia 6GW hydrogen plan

Plans for a 6GW renewable hydrogen project in South Australia have been shelved after a feasibility assessment identified unacceptable environmental and permitting risks related to water supply and desalination, according to the project founder Terry Kallis.

Kallis Energy Investments announced the 6GW Moolawatana plant last year, which planned to use solar and wind resources of the northern desert part of the state of South Australia to create hydrogen for export, with Korea and Japan mentioned as targets.

"Not all projects work and it is important that developers determine fatal flaws as early as possible in the project timeline and communicate this to stakeholders," Kallis said.

A separate 3GW renewable hydrogen and ammonia project being developed by Kallis alongside Danish fund manager Copenhagen Infrastructure Partners (CIP) in Western Australia is progressing as planned.

This month a report by the International Renewable Energy Agency (Irena) found that Saudi Arabia, Morocco and China are among countries most affected by water constraints. But Saudi Arabia still has potential production of 190mn t/yr and Morocco 90mn t/yr, the report said.

"Some of the most promising areas are strongly undermined by the lack of water sources. Northern China, south-western Australia and arid zones in general are not suitable for the production of green [electrolytic] hydrogen if water availability is considered," the report found.

Desalination could provide water in areas of scarcity, the report said, but costs estimated around $3/m³ of water would add up to 4pc to the total cost of hydrogen production.

By Aidan Lea