One of the largest green hydrogen plants in the world will be built in South Australia.
The $117.5 million plant to be constructed near Port Lincoln will use surplus wind and solar power to produce hydrogen, which will power a 10-megawatt gas turbine and five-megawatt hydrogen fuel cell to supply power to the grid.
The ability to store renewables means cheaper power that can be accessed around the clock, SA Energy Minister Tom Koutsantonis said.
"Hydrogen also offers an opportunity to create a new industry in South Australia where we can export our sun and wind resources to the world," Mr Koutsantonis said.
German firm Thyssenkrupp will partner with Australian company Hydrogen Utility to deliver the project.
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It will be partly funded by a $4.7 million grant and $7.5 million loan from the state government's renewable technology fund.
Hydrogen Utility's CEO Attilio Pigneri said the plant would have the ability to help stabilise the national grid along with acting as a fast frequency response to support new solar plants being developed on the Eyre Peninsula.
The company said its overarching goal to show that hydrogen could be exported from South Australia to Asia-Pacific markets.
