Investor Presentaiton

Foreword South Australia is ideally suited to seize the huge opportunities created by the emerging global market for hydrogen and its many applications for energy generation, storage and transport. Hydrogen allows the world to rethink ways to generate and store energy, power transport fleets and heat homes. Hydrogen fuel cells can power trains, trucks and buses to replace diesel as a fuel and hydrogen can supplement and replace natural gas in domestic gas networks that warm our homes and cook our meals. The Council of Australian Governments Energy Council's National Hydrogen Strategy Working Group has already identified hydrogen as Australia's next multi-billion export opportunity. Modelling for the Australian Renewable Energy Agency has forecast Australian hydrogen exports could contribute $1.7 billion and 2,800 jobs to the national economy by 2030. Our aim is to position South Australia to attract a substantial share of that potential economic activity. With more than 50 per cent of the State's energy mix generated through renewable sources, new interconnection and storage technologies such as hydrogen will support South Australia to become a net 100 per cent renewable energy generator during the 2030s. We can then capture significant economic benefits from renewable energy exports. With more than $7 billion attracted in clean energy generation and storage, international investors already regard South Australia as an attractive investment destination. Through the production of renewable hydrogen, South Australia can help meet the world's energy demands while reducing emissions at home and abroad. The hydrogen economy is a further step in the transition of South Australia's energy system as we integrate renewable energy into the grid to deliver more affordable, reliable and cleaner energy while also creating more jobs and investment in South Australia. Hydrogen production presents additional benefits for regional South Australian communities, where projects are likely to be based. Our expectation is that during the 2030s, South Australia will generate more clean power than required for local use, setting us up to become a national and global force in clean energy. Now is the time to step up the development of a hydrogen economy. While South Australia is not alone in setting its sights on developing a hydrogen economy, the State has a first mover advantage. We believe we can deliver green hydrogen to our trading partners to meet their ambitious plans. We are already working with the Commonwealth and all State and Territory Governments to develop a National Hydrogen Strategy for 2020-2030. This Hydrogen Action Plan will help South Australia be a supplier of choice for green hydrogen in Australia. The Hydrogen Action Plan also aligns with the Marshall Liberal Government's Growth State Plan, which aims to sustain the State's annual economic growth rate at 3 per cent. Our new trade offices in North East Asia, China and the United States and our long-standing Agent-General's office in the United Kingdom provide platforms to promote our hydrogen capabilities to international markets and facilitate trade and investment partnerships. Beginning with Australia's largest electrolyser coming online in 2020 in metropolitan Adelaide, we are determined to unlock South Australia's renewable hydrogen potential. Phall Hon Steven Marshall MP Premier of South Australia Hon Dan van Holst Pellekaan MP Minister for Energy and Mining Government of South Australia South Australia has a proud record as 'the State of Science'. Research and education institutions across the state deliver world class STEM (Science, Technology, Engineering and Maths) education, research and innovation and work collaboratively with industry sectors and government agencies to translate innovation to deliver 'new to the world' products, processes and services. South Australia has been at the forefront of energy innovation that has fuelled a remarkable increase in renewable energy generation to over 50% of total energy generation in the state. South Australia's successful implementation of the world's largest lithium-ion battery and autonomous vehicle trials at the Tonsley Innovation District are recent examples that showcase the capacity of industry to harness innovation to drive the development of a STEM- enabled future workforce and deliver economic impact. Innovation and Translation Neighbourhoods such as those at Tonsley, Mawson Lakes and Lot Fourteen in the heart of Adelaide represent sites where industry leaders can also access key information on the role of frontier technologies, such as machine learning, quantum communication, automation, sensors and new materials. Access to this information supports future-focussed industry sectors to be resilient and compete in changing world markets. These Neighbourhoods are also 'sticky for talent', attracting global innovators and are where the next generation of innovation leaders work to solve industry problems to provide a leading edge for business partners. Against this backdrop, South Australia is positioned as an international leader for the development of renewable or 'green' hydrogen production to underpin a hydrogen economy built on domestic use and a significant global export potential Сальмоне Professor Caroline McMillen Chief Scientist of South Australia South Australia has an opportunity to progress the development of renewable hydrogen projects at scale to meet the significant future hydrogen export requirement, in particular to the Asia-Pacific region. With hydrogen production technologies from renewable energy and water already proven, the focus is now on achieving significant cost reduction through production at scale within a comprehensive regulatory framework. South Australia is well positioned for this next stage. This will need close national and international engagement across the spectrum of renewable hydrogen activities. Once implemented, the actions outlined in this Plan will enable South Australia to become a national and global force in emission reduction as part of a global clean energy transition. South Australia was the first Australian jurisdiction to work with industry to develop a plan to accelerate the transition to a hydrogen economy through the release of the Hydrogen Roadmap for South Australia in 2017. Subsequent to this, the State provided support for four renewable hydrogen projects. The first of these projects will be in production in mid-2020, delivering a blend of hydrogen and natural gas to a local residential community in metropolitan Adelaide - an Australian first for its scale and nature. This Action Plan is a major milestone for the continued development of a significant, clean, safe and economically beneficial hydrogen value chain in South Australia Terry Burgess Co-chair, South Australian Government's Hydrogen Economy Steering Committee M South Australia's Hydrogen Action Plan Government of South Australia September 2019 4