Green hydrogen plans shelved at Port Pirie smelter site

A $750 million green hydrogen facility proposed for Port Pirie’s smelter has been cancelled, according to the South Australian state government.

The project, which was announced in 2021 by the former Liberal government, reportedly “never proceeded beyond feasibility” and “has not progressed for some years”, according to a South Australian government spokesperson.

The government spokesperson clarified that the Trafigura green hydrogen project was intended to be integrated with the Nyrstar Port Pirie smelter, which is owned by global commodities company Trafigura.

When initially announced, both the state government and Trafigura had committed $2.5 million each for front-end engineering design to “accelerate the investment and jobs boom the project will deliver to Port Pirie.”

This cancellation follows a pattern of hydrogen project setbacks in South Australia.

Last month, the state government’s plans to build a major hydrogen electrolyser and power plant near Whyalla were reportedly “deferred.” Funds originally earmarked for that project – which was one of Labor’s major election promises – were instead redirected toward saving the Whyalla steelworks, which has entered administration.

The shelving of the Port Pirie project represents another blow to South Australia’s green hydrogen ambitions.

The current Malinauskas Labor Government has confirmed that the project was never incorporated into their hydrogen plans, marking a shift in priorities from the previous administration’s renewable energy strategy.

Trafigura, the company behind the proposed facility, has not yet commented on the cancellation of the project or its future plans for green hydrogen development in the region.

Picture: credit Trafigura