Leader of the Opposition, the Hon. Vincent Tarzia, MP today warned if the Labor Government pushes ahead with its shaky Hydrogen Power project, all South Australians will pay the price.
“South Australia is in the midst of a cost-of-living and health system crisis and this Government is hell-bent on proceeding with an expensive and unproven plant that will provide no immediate relief for South Australian families or small business,” he said.
At today’s Budget and Finance Committee hearing the Office of Hydrogen Power Chief Executive, Sam Crafter could not provide any confidence around the viability of the project.
“When the average household power bill has risen by $800 and small business by $1700 since Labor came into office, this Government is building a power plant that will not provide any relief at all to those doing it hardest.
“Today we heard they can’t tell us if prices will come down or how much taxpayer money has been spent on spin and advertising and that the timeline has blown out to early 2026.
“This Government has no plan to reduce energy prices.
Shadow Minister for Energy and Net Zero, Stephen Patterson MP said he was extremely worried about cost-blowouts.
“They have told us it would cost $593 million but the CSIRO has indicated that the cost of electrolysers has substantially risen since 2021. Today Sam Crafter could not provide any assurances around the pricing,” said Mr Patterson.
In July 2024, hydrogen expert and former chief scientist, Alan Finkel said it was ‘increasing clear that green hydrogen is too expensive’ and Australia was ‘unlikely to use hydrogen for storage of electricity.’
Fortescue’s Andrew Forrest has also backed away from hydrogen plans. He has been quoted as saying “we are not going to swim against the tide”
“Obviously we are concerned that this Government doesn’t appear to be listening. Experts and big businesses are no longer chasing hydrogen as a viable power option, yet we have the arrogant Labor Government still proceeding.
The Shadow Minister for Cost of Living, Hon. Heidi Girolamo MLC, said if the Government has received advice in relation to a cost blowout it owed it to the people of South Australia to come clean about that.
“The Labor Government must make public any advice it has; we urge the Government to be transparent about this matter, particularly in the light of an almost 600% increase in office staff numbers. They budgeted for eight, there are now 55 full-time staff,” said Ms Girolamo.
“It is outrageous that the government cannot provide any indication of any positive impact to the cost-of-living.
“It was sold as a cost-of-living measure, but it clearly is not.
“This hydrogen experiment is likely to be a very costly exercise for South Australia with very, very little benefit.