The federal government has chosen Port Bonython, near Whyalla, as the site of a so-called "hydrogen hub".
The Coalition has allocated $70 million of its recently announced budget towards the South Australian government's $147 million Port Bonython Hydrogen Hub Activation project, which is aimed at getting hydrogen producers, users and exporters in the same place.
It has also allocated $110 million in finance for a 20-megawatt solar thermal power plant in Port Augusta that has been proposed by Vast Solar, $20 million to a company planning to build an integrated green cement business — with sites in Whyalla, Port Augusta and Port Adelaide — and $15 million for a carbon capture and storage demonstration project at Moomba.
In a statement, Prime Minister Scott Morrison said projects worth a total of $500 million — including private investment — would create thousands of jobs.
He said the government would contribute a total of $218 million of that, including through existing grant programs.
"The upper Eyre Peninsula and iron triangle region at the top of Spencer Gulf in South Australia has long been an industrial powerhouse, and now they are primed to seize more opportunities from Australia's clean hydrogen industry," Mr Morrison said.
Federal Energy Minister — and member for Hume in New South Wales — Angus Taylor is visiting Whyalla today for the announcement.
Port Bonython is in the same area that thousands of giant Australian cuttlefish aggregate every year, creating a spectacular tourism drawcard.
Mr Taylor said the cuttlefish would be factored in during the environmental approval process.
"We can get this balance right between environment and jobs, environment and opportunities for South Australians and that is what our policies are all about," he said.
"We do have to make sure that those processes are honoured and done appropriately and I'm very confident they will be."
Labor to match funding
State energy minister Tom Koutsantonis said the funding would be matched by federal Labor since it had already been included in the federal budget.
"It's a bit cheeky waiting so long to announce it but, nevertheless, here it is," Mr Koutsantonis said.
Ahead of last month's state election, the then-Labor opposition chose Whyalla as the best site for a $593 million hydrogen power plant, electrolyser and storage facility that it promised last year.
It gave itself a deadline of June 17 to pick an exact location near the city.
Former state treasurer Rob Lucas said the hydrogen plant would not mean South Australians were paying less for their power, calling it "a crazy idea".
Mr Koutsantonis said the funding announced today would help with the project.
"Whyalla is now going to become the centre of Australia's — if not the world's — green hydrogen production," he said.
Whyalla and Port Augusta are in the federal seat of Grey.
Liberal Rowan Ramsey won Grey with a 13.3 per cent margin in 2019.
He is facing a challenge from independent euthanasia advocate and bakery owner Liz Habermann, who almost won the state seat of Flinders last month.
Grey covers 92 per cent of South Australia, making it the third-largest electorate in the country by area.
