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The South Australian Government is leading the way in the hydrogen trading market with a new $12.5 million project to produce low-cost green hydrogen from renewable resources and export it to Indonesia. 

The project, which is partly funded by Japan’s Ministry of the Environment and Japanese company Marubeni, includes a five-megawatt battery energy storage system (BESS) and a 150kW electrolyser that uses proton exchange membrane technology. 

The project site is in Bolivar, north of Adelaide and is owned by SA Water. The site provides the potential for Marubeni to expand its capacity in the future, dependent on demand for hydrogen. 

The facility will create low-cost green hydrogen from renewable resources and allow for hydrogen to be transported in a metal hydride container from South Australia to Indonesia, while contributing to grid stabilisation with the deployed BESS based at Bolivar.

The demonstration plant is anticipated to be operational by August 2023, with transportation to Indonesia taking place in late 2023.

The sod was turned on the project in early February 2023, after South Australian Premier, Peter Malinauskas, and State Minister for Trade and Investment, Nick Champion, met with the Marubeni Corporation during a trade mission to Tokyo in October 2022.

Mr Champion said South Australia is already a leader in renewable energy, which places the state in a strong position to become a global leader in green hydrogen for the long-term future.

“We have a long-standing relationship with the Marubeni Corporation and its choice to establish this hydrogen facility in South Australia is no coincidence – our state has demonstrated capabilities and huge potential for expansion in this industry,” Mr Champion said.

“It’s green lights ahead for South Australia’s renewable energy future.”

Executive Officer and Chief Operating Officer of the Power Business Division, Marubeni Corporation Tokyo, Satoru Harada, said, “Marubeni has been developing a green hydrogen and BESS project with the close cooperation of the South Australian Government’s Department for Trade and Investment and Department for Energy and Mining.

“The ground-breaking ceremony of the project represents a significant milestone in Marubeni’s commitment to a clean energy future.

“Green hydrogen has the potential to revolutionise the way we produce and use energy, and we are proud to be one of the frontrunners of this effort in South Australia.”

Marubeni Australia has offices in Adelaide, Sydney, Melbourne and Perth, as well as a presence in Port Moresby, Papua New Guinea.

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