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.
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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.