Hydrogen Supply Chain Mapping - South Australia

South Australia

Hydrogen Supply Chain Mapping - South Australia

Key Findings

Statements of Work
Unique Businesses
Aboriginal Majority Owned

South Australia is well advanced in the renewables and hydrogen transformation, with 69 percent of its energy generation in 2022 coming from wind and solar PV, and a growing hydrogen project pipeline. The South Australian Government is investing more than half a billion dollars to accelerate new hydrogen projects and infrastructure, and build a world-leading hydrogen power plant near Whyalla by 2025. Green hydrogen that is produced using low or zero emission sources is renewable, flexible and storable, and can enable decarbonisation across the energy and industrial sectors. This new growth industry will lower global carbon emissions while generating jobs, investment, exports and opportunities for local industry.

This capability mapping and gap analysis study was undertaken to examine the existing trades, services and supply capability that could support a local hydrogen industry, and identify potential low points or gaps. The significant existing industrial capability and capacity that supports South Australia's resources and energy sectors will play a critical role in growing our state's hydrogen ecosystem.

In addition to documenting the existing capabilities that can be applied directly to the hydrogen industry, such as civil works and water desalination, this report also highlights potential opportunities for local businesses to diversify their existing capability to this sector, eg from the adjacent oil and gas sector, and for investment attraction of new capabilities to the state for the manufacture of items which would otherwise be imported.

Information within this report was captured from the ICN database and used to measure the capabilities of businesses in South Australia against the likely scopes (packages) of work required to support the development of a hydrogen industry in South Australia. The report outlines the number, size and scale of capable businesses across each likely package of work, and whether the business is an Aboriginal Majority Owned Business (AMOB).

Overall, local capability matches were identified for around 75 per cent of the hydrogen supply chain capabilities outlined in this report. High levels of capability are evident in the Hydrogen - Civil and Mechanical and Hydrogen - Common Elements Supply categories. As to be expected with an emerging industry, local capability gaps exist, particularly in the Hydrogen - Downstream Application, Hydrogen - Delivery and Hydrogen - Production categories.

The findings of this study underline the significant opportunity for future growth and development of the hydrogen industry in South Australia, and provide guidance for future investments and activities in building local supplier capability and capacity, industry diversification and investment attraction. It is important to note that a number of businesses were included in the study that, while not currently working specifically on hydrogen projects, do have capabilities aligned with the future requirements of this emerging sector.

Local industry has a high level of competence in meeting the majority of the scopes of work associated with the hydrogen sector. This evaluation applies to the capability of businesses and does not take into account their capacity to handle escalating demand from other projects and industry sectors in South Australia, other than providing an indication of business scale and size.

Whilst every effort has been made to identify capable businesses, the ICN database of suppliers upon which this report is based may not encompass the entirety of South Australia's industry capability.

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