Taxpayers foot million-dollar bill to store Premier’s hydrogen turbines
A new report reveals how much the state is paying to store and maintain $250 million turbines – 20 months after the state government’s flagship hydrogen dreams were dashed.
The state government has spent $1.8 million on storage and maintenance for four hydrogen-capable gas turbines in the past financial year, 20 months after Energy and Mining Minister Tom Koutsantonis claimed a new buyer for the assets would offset $180 million spent so far on the failed plan.
Koutsantonis has previously said taxpayers were on the hook for $250 million to pay for the four turbines meant to drive the state government’s promised flagship hydrogen energy plan.
The Auditor-General’s report tabled in state parliament yesterday said the Energy and Mining Department (DEM) started an open market process to sell the turbines in August last year but no sale has yet eventuated.
It said the DEM advised the sale objective was to recoup the original purchase price and to ensure the turbines were sold under the caveat that they were installed in SA to provide additional generation capacity and system reliability.
“The sales process continues to be active,” the report reads.
You might like
But it also highlighted that fact that not all parts of the turbine had yet arrived in SA, with remaining components set to arrive “by early 2027”.
A private contractor is being paid to receive, store and maintain the turbines while the sales process continues.
The controversial $593 million Hydrogen Jobs Plan announced as a flagship project in the 2022 state election was dashed when the Whyalla Steelworks was placed into administration with funds instead funnelled into the $2.4 billion rescue package for Whyalla and its ailing factory.
Millions of dollars was spent on overseas travel, 55 staff salaries and a CEO paid more than $600,000 at the state’s hydrogen power office before it was shut down and its boss Sam Crafter is now the state lead of the Whyalla Steelworks Industrial Transformation Unit.
Stay informed, daily
Budget figures showed $23 million was earmarked to run the office in the 2023 to 2024 financial year and one hydrogen-focused trip cost taxpayers $72,991 in May 2023 when Premier Peter Malinauskas and two advisers travelled to Europe for four days to promote the state’s hydrogen plan.
In November 2024, the government announced it had secured an agreement with ATCO Australia to contract GE Vernova to supply a first-of-its-kind aeroderivative gas turbine solution, capable of running on hydrogen fuel.
The four turbines would have operated at the Whyalla hydrogen power plant. Hydrogen fuel was meant to power the LM6000VELOX turbines to provide power to the state’s electricity grid.
It would have been the first time a GE Vernova power plant project would have been powered by aeroderivative gas turbine combustion technology capable of operating on 100 per cent hydrogen.
Shadow Treasurer Ben Hood said, “Peter Malinauskas made bold promises about green energy”.
“Labor has had these turbines up for sale for 14 months, and the Auditor-General shows more than $180 million has been spent on them so far,” Hood said.
“Taxpayers were promised a return on the dollars spent but instead have been left with a major liability.
“This is just another example of the Labor Government’s mindless spending coming back to bite – and sadly it’s the people of South Australia who are wearing the cost.”
A state government spokesperson said there were no further comments to add to the report findings.
Want to see more stories from InDaily SA in your Google search results?
- Click here to set InDaily SA as a preferred source.
- Tick the box next to "InDaily SA". That's it.
