Labor’s hydrogen hoax continues to unravel

Wednesday 05 February, 2025

The Opposition is again calling on the Malinauskas Labor Government to be transparent about the future of its $700 million hydrogen hoax, following a change in tone, seemingly now blaming GFG for its own delays and broken promises. 

When questioned in Parliament about his government’s hydrogen plans, Energy Minister Tom Koutsantonis pointed to Sanjeev Gupta as being “pretty much at the centre of our hydrogen ambitions” but conceded that “the problem we’ve got is he’s not making the investments that are needed just to even keep up with maintenance at the plant.” 

Leader of the Opposition, Vincent Tarzia said this is a clear signal that Labor is setting up GFG Alliance as a scapegoat for its failed election promise. 

“Peter Malinauskas promised to build a hydrogen plant and assured South Australian households that they would be better off – now, almost four years later, nothing has changed,” Mr Tarzia said.  

“Just like the failure to address the ramping crisis, Mr Malinauskas and his government are shifting the goal posts on its election promises to save face. South Australians deserve better.” 

Shadow Minister for Energy and Net Zero, Stephen Patterson said South Australians are rightly sceptical about this hydrogen hoax, given news that Australia’s largest green hydrogen project had collapsed due to the Queensland Government pulling funding for the multi-billion-dollar Gladstone Plant and Pipeline, after significant cost blowouts.  

“Peter Malinauskas' original aim with his hydrogen plant was to focus on electricity generation and has since admitted it won’t reduce electricity prices for households. The recent pivot to hydrogen for 'green steel' reflects the Labor Government shifting the goalposts to fit the uncomfortable reality,” Mr Patterson said.  

“As the hydrogen hoax unravels, is Labor blaming GFG for the inevitable delays and broken promises that fall at the government’s feet?  

“This project was originally valued at over half a billion dollars, yet every attempt by the Opposition to obtain up-to-date costings has been met with a wall of secrecy. 

“South Australians deserve to know - how much has already been spent, how much will this really cost, and will Peter Malinauskas continue to arrogantly pursue his dream while global experts are walking away? 

“South Australians need transparency, not another costly experiment that leaves them footing the bill.”