Statutes Amendment (National Energy Laws) (Gas Pipelines) Bill
Ms CLANCY (Elder) (11:27): I rise in support of this bill to provide for the implementation of a simpler regulatory framework that will continue to support the safe and efficient use of gas pipelines in South Australia. Australian Gas Networks' project Hydrogen Park SA, located at Tonsley in my electorate, produces renewable hydrogen using renewable electricity and water, which can be blended with natural gas and supplied to existing gas networks. While now the largest of its kind in Australia, the 1.25 megawatt electrolyser in Tonsley that provides this hydrogen will soon be joined by the massive electrolysers being built by the Malinauskas Labor government in Whyalla as part of our Hydrogen Jobs Plan.
But for now, more than 700 homes in the Mitchell Park area of my electorate are being supplied by gas blended with the green hydrogen produced at Tonsley. I am proud that this project was supported by the Weatherill Labor government through a $4.9 million grant through the Renewable Technology Fund. Residents in Mitchell Park are proud that their gas is greener, and they are looking forward to the percentage of green hydrogen in the blend increasing when that becomes possible.
This project at Tonsley is a pioneer in the industry, using existing gas pipelines in Mitchell Park to deliver blended gas to people's homes. It is an example of one of the many changes that are on the way as the old structures of the energy sector are replaced by new structures in pursuit of reliable, affordable and cleaner energy. As the energy sector evolves, it is important these changes occur in the most efficient ways and with the best outcomes for consumers and our environment.
That is what this bill is about: it seeks to improve competition so that new players can get access to markets without the old guard putting up barriers that make it impossible. It gives the independent regulator the ability to make sure this is done fairly. Importantly, it will create much more transparency in how the market operates. That transparency will ultimately be good for consumers because it will rein in prices as third parties go to the negotiating table with all the information to get a reasonable deal.
Confidence is king in investment. When deciding upon the multimillion-dollar investments in projects that will create jobs and provide new and better services, investors need as much certainty as possible. In addition to the Malinauskas Labor government's $593 million investment in our Hydrogen Jobs Plan, several major companies are investigating the development of hydrogen facilities. Making the hydrogen is the first step. Getting it to the customer is the next, and that will require looking at pipeline arrangements.
The customers will include industrial users who want to replace or supplement their existing use of fossil fuels to create products that are cleaner and greener; electricity generators such as the power plant to be built by the government in Whyalla; storage sites for hydrogen; transport refuelling points for passenger vehicles, public transport and particularly heavy vehicles such as those used for long-distance trucking; and the suburban gas network such as is now used for the Tonsley project.
This bill ensures that hydrogen developers will have more options to look at when calculating how to make their ideas stack up logistically and financially. They will have more visibility of costs and be better able to forecast supply and demand cycles. Similarly, pipelines will be needed to accommodate the carbon capture, use and storage industry, ensuring carbon capture can be completed efficiently and cost effectively.
Changes in the energy market are deep and diverse. As guardian of consumer interests and facilitator of business prosperity, we in government need to get the balance right. For consumers, we want systems to operate so that they are affordable and reliable, and systems which match the clearly expressed demand from the public that we do as much as we can to address climate change.
Simultaneously, we want to encourage innovation and allow businesses to move rapidly to seize opportunities as they arrive. This bill seeks to achieve those aims by simplifying existing systems and creating a framework that is understandable and functional for all involved. I commend this bill to the house.