South Australia’s hydrogen projects: advising the State on the Hydrogen Jobs Plan and Port Bonython Hydrogen Hub
Piper Alderman acted as lead external legal adviser to the South Australian Government on its two flagship hydrogen linked power and infrastructure projects.
The South Australian Government has driven two hydrogen initiatives in the Upper Spencer Gulf:
- Hydrogen Jobs Plan: a State funded hydrogen power station, electrolyser and storage facility near Whyalla.
- Port Bonython Hydrogen Hub: a multi user precinct for hydrogen production and export, developed with private sector partners.
Piper Alderman advised the State on both.
Hydrogen Jobs Plan
The 2022 to 2023 State Budget committed $593 million to the Hydrogen Jobs Plan. It covered 250MW of electrolysers, 200MW of hydrogen fuelled generation and hydrogen storage. The aims were to add dispatchable generation to the grid, prove large scale hydrogen production and generation, and help unlock further renewable energy projects. The Office of Hydrogen Power South Australia (OHPSA) was set up to oversee design and delivery.
We were part of OHPSA’s procurement team. Our work included:
- assessing market proposals and developing the contracting model
- running the early contractor involvement (ECI) process
- procuring long lead time equipment
- advising on green electricity PPAs and hydrogen offtake
- advising on structuring, risk allocation, project partner and collaboration agreements, project interfaces, and EPC and O&M contracts
The project milestones were:
- Evaluation: 29 proposals from around the world were assessed over six months.
- ECI agreements: in October 2023 the State signed ECI agreements with a consortium of ATCO Australia and BOC, and with Epic Energy for an integrated hydrogen pipeline and storage solution.
- Turbines: through the ECI, the State secured an agreement for ATCO Australia to contract GE Vernova for four hydrogen capable turbines. GE Vernova expected them to be its first aeroderivative gas turbines to run on 100% renewable hydrogen.
- Approvals: the project received State development approval in August 2024 and EPBC approval, subject to conditions, in October 2024.
In February 2025 the Government deferred the project and redirected its funding to the Whyalla steelworks. OHPSA’s functions moved to the Department for Energy and Mining in May 2025.
Port Bonython Hydrogen Hub
Port Bonython has an existing deep water export terminal and more than 2,000 hectares of developable land. The projects proposed for the hub represent around $13 billion of investment. The Commonwealth and the State signed a grant agreement in 2023, with up to $70 million in Commonwealth funding matched by the State and participating developers. The funding is for common user infrastructure, starting with hydrogen export from the Port Bonython Jetty.
We have acted for the State on the hub since 2021. Our role has included:
- corporate structuring advice, given with the Crown Solicitor’s Office, covering competition law, asset ownership and bankability
- developing strategic objectives and presenting at structuring workshops
- advising on delivery models and how the hub interacts with related projects and infrastructure
- drafting high level terms for funding, access and use of the common user infrastructure, and negotiating with stakeholders
- advising on shared infrastructure arrangements with the hub’s project partners and on the Commonwealth grant funding arrangements
The State has continued to pursue the hub since the Hydrogen Jobs Plan was deferred.
Bringing it together
Both projects drew on the same mix of skills: procurement and delivery models for new technology, risk allocation and bankability, and transmission, gas and offtake arrangements.
“These projects asked the market to deliver technology at a scale that had not been built before. Working with the Crown Solicitor’s Office, our job was to give the State contracting and structuring models that tested cost and deliverability before it committed, and that worked for government and its private sector partners.”
Martin Lovell, Partner
Martin leads the firm’s national Projects, Infrastructure & Construction practice and co-leads its Energy & Resources team. His other energy work includes Project EnergyConnect and Eyre Peninsula Link for ElectraNet, and the first two grid scale battery projects in Australia.
What the market says
“Martin Lovell’s team really are the A-team for achieving the very best commercial and legal outcomes in South Australian energy projects. They have strength in depth – both of knowledge and experience – in all aspects of energy transactions.”
The Legal 500 Asia Pacific, 2023
