OFFICE OF HYDROGEN POWER SOUTH AUSTRALIA

91 King William Street, Adelaide. GPO Box 618, Adelaide 5001

www.energymining.sa.gov.au

Contact phone number: 08 8463 3000

Contact email: DEM.OCE@sa.gov.au

ISSN: 2653-5432

Date presented to Minister: 30 September 2025

To: Honourable Tom Koutsantonis MP

Minister for Energy and Mining

This annual report will be presented to Parliament to meet the statutory reporting requirements of (Public Sector Act 2009 (Part 3, s 12) and the Public Sector Regulations 2010 (Part 2, reg 7), the Public Finance and Audit Act 1987 and the requirements of Premier and Cabinet Circular PC013 Annual Reporting. This report is verified to be accurate for the purposes of annual reporting to the Parliament of South Australia.

Submitted on behalf of the OFFICE OF HYDROGEN POWER SOUTH AUSTRALIA by:

Paul Martyn PSM
Chief Executive
Department for Energy and Mining

Date 23 September 2025

From the Chief Executive

From the date of its establishment in May 2022, the Office of Hydrogen Power SA (OHPSA) was focussed on delivering activities to support the economic transformation of the Upper Spencer Gulf.

Stakeholder engagement was a key priority from the outset, with OHPSA staff heavily involved in fostering opportunities in the region, working with industry, community and government – including the Barngarla people, as the Traditional Owners of land in and around Whyalla – to help drive hydrogen and decarbonisation opportunities locally.

Over the previous year, OHPSA made significant progress on the delivery of the Hydrogen Jobs Plan, including the purchase of 100 per cent hydrogen capable turbines that can now be made available to support South Australia's grid security.

Importantly, the investment made as part of this project continues to support the region through the construction of new electricity infrastructure that will support the economic and industrial growth of the Upper Spencer Gulf, including the long-term future of the Whyalla Steelworks.

In February 2025 the South Australian Government, with the support of the Australian Government, took decisive action to secure the future of the Whyalla Steelworks and associated mines by placing the steelworks into administration.

Together, the Australian and South Australian Governments have committed more than $2.4 billion as part of a Sovereign Steel Package to secure Australian steelmaking and invest in a green metals future. This includes $1.9 billion in funding to support a new owner with upgrades and new infrastructure. This will be vital to support the transition to green iron and steelmaking through deployment of low-emissions technologies that progress Australia's net-zero ambitions and enhance global competitiveness.

As part of this initiative, funding originally allocated to the Hydrogen Jobs Plan was deferred to support investment in the Whyalla Steelworks – a critical part of Australia's green steel future.

The work that has been delivered on the Hydrogen Jobs Plan ensures government is in the best possible position to work with the next owners of the steelworks to support the transition to green iron and steel. Hydrogen is crucial to that process, and the work OHPSA has completed provides the state with a significant head start.

As part of the government's change in focus to secure the future of Whyalla Steelworks, OHPSA was formally dissolved on 7 May 2025 with residual functions absorbed into the Department for Energy and Mining (DEM).

While sovereign steelmaking is our current priority, we remain committed to developing a robust hydrogen industry in South Australia, supporting the transition to green steel and iron production and decarbonising heavy industry on the pathway to net zero carbon emissions.

Paul Martyn PSM
Chief Executive
Department for Energy and Mining

Contents

Overview: about the agency
Our strategic focus
Our organisational structure
Changes to the agency
Our Minister
Our Executive team
Legislation administered by the agency
The agency’s performance
Performance at a glance
Agency specific objectives and performance
Corporate performance summary
Employment opportunity programs
Agency performance management and development systems
Work health, safety and return to work programs
Executive employment in the agency
Financial performance
Financial performance at a glance
Consultants disclosure
Contractors disclosure
Risk management
Risk and audit at a glance
Fraud detected in the agency
Strategies implemented to control and prevent fraud
Public interest disclosure
Reporting required under any other act or regulation
Public complaints
Number of public complaints reported
Additional Metrics
Service Improvements
Compliance Statement
Appendix: Audited financial statements 2024-25

Overview: about the agency

Our strategic focus

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Our organisational structure

The below organisational structure reflects the structure of the agency as at 6 May 2025.

Changes to the agency

During 2024-25 there were the following changes to the agency's structure and objectives as a result of internal reviews or machinery of government changes.

• OHPSA was formally dissolved on 7 May 2025, with residual functions absorbed into DEM.

Our Minister

Hon Tom Koutsantonis MP has been the Member of Parliament for the seat of West Torrens since 1997 and is currently Minister for Infrastructure and Transport, Minister for Energy and Mining and the Leader of Government Business in the House of Assembly.

Tom previously held ministerial appointments for Transport and Infrastructure between 2013 and 2014 and Mineral Resources and Energy between 2011 and 2018. He was also responsible for these portfolios in the Shadow Ministry between 2018 and 2022.

Our Executive team

As at 6 May 2025, OHPSA’s Executive Leadership team comprised:

Sam Crafter, Chief Executive
Amy Butler, Director, Strategic Policy and Corporate Services
Richard Day, Director, Industry Development
Maria Kosti, Director, Strategic Communications and Stakeholder Engagement
Sean Moules, Director, Engineering
Martin Reid, Director, Development and Approvals

Legislation administered by the agency

OHPSA does not administer any legislation.

Other related agencies (within the Minister’s area/s of responsibility)

OHPSA was an attached office to the Department for Energy and Mining.

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The agency’s performance

Performance at a glance

Until its dissolution on 7 May 2025, OHPSA achieved a number of significant milestones for the Hydrogen Jobs Plan and broader Upper Spencer Gulf region during the 2024-25 financial year. Highlights included the following:

• Alongside our project partners, delivered the detailed project design, procurement of long lead equipment and the contracting model for the construction phase of the Hydrogen Jobs Plan. This included purchase of four 50-megawatt hydrogen-capable gas that can now be deployed to deliver new electricity generation capacity in South Australia, strengthening the grid's reliability.
• Secured state and Australian Government approvals for the Hydrogen Jobs Plan, with assessments providing insights into the planning and preparation of the hydrogen facilities such as its proposed location, site design, and management of environmental and socio-economic impacts.
• With ElectraNet, as operator of South Australia's electricity transmission network, delivered new transmission infrastructure to support the economic transformation of the steelworks and wider Whyalla region, including construction of two new electrical substations to support swift connection of new industrial electrical loads. Construction commenced in late 2024 and is scheduled for completion in December 2025.
• Continued development of the Port Bonython Hydrogen Hub, supported by the Australian Government's Regional Hydrogen Hubs program. This included workstreams to inform development of the site, such as environmental and cultural heritage studies, common-user infrastructure investigations and precinct design works.
• Engaged with industry stakeholders interested in developing projects in the Whyalla region, including companies seeking to produce hydrogen or hydrogen related products such as low-carbon sustainable aviation fuels, green iron and fertilisers.
• Provided a 'front door' to state government for companies interested in leveraging South Australia's abundant renewable energy resources to advance hydrogen production projects.
• Delivered a Memorandum of Understanding and Letter of Intent with Zero Petroleum, a producer of synthetic fuels, to explore investment opportunities in South Australia. This included a feasibility study, in collaboration with Adelaide Airport and Qantas Airways, to assess the viability of a low-carbon sustainable aviation fuel production facility in Whyalla.
• Delivered a targeted and place-based communications program in support of the Hydrogen Jobs Plan and the Port Bonython Hydrogen Hub precinct, including over 110 engagements and involvement of 23 Aboriginal organisations. This was framed by South Australia's broader economic ambitions under the State Prosperity Project and focused on building enduring relationships across the Whyalla region, Upper Spencer Gulf and Eyre Peninsula.
• Continued engagement with the Barngarla community as the Traditional Owners of the land in and around Whyalla. Over the years, OHPSA built a strong working partnership with the Barngarla Determination Aboriginal Corporation, and this continued as the projects progressed.
• Partnered with other Aboriginal organisations and collectives to facilitate involvement in project planning and contracting pathways, as well as embedding Traditional Owner perspectives across cultural heritage, procurement readiness and community engagement efforts.

Agency specific objectives and performance

Corporate performance summary

The majority of the corporate services for OHPSA were provided by DEM through a service level agreement.

Employment opportunity programs

Agency performance management and development systems

Work health, safety and return to work programs

*number of claimants assessed during the reporting period as having a whole person impairment meeting the relevant threshold under the Return to Work Act 2014 (Part 2 Division 5)

**before third party recovery

Data for previous years is available at: 2023-2024-ohpsa-annual-report-statistics.xlsx

Executive employment in the agency

Data for previous years is available at: 2023-2024-ohpsa-annual-report-statistics.xlsx

The Office of the Commissioner for Public Sector Employment has a workforce information page that provides further information on the breakdown of executive gender, salary and tenure by agency.

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Financial performance

Financial performance at a glance

The following is a brief summary of the overall financial position of the agency. The information is unaudited. Full audited financial statements for 2024-25 are attached to this report.

The 2024-25 budget reflects the original budget allocated in June 2024 and does not reflect any adjustments that occurred during 2024-25.

Total budgeted income includes full year funding for OHPSA including:

• $25 million for Port Bonython Hydrogen Hub, and
• $402.2 million appropriation for other activities, predominantly the Hydrogen Jobs Plan.

The actual income received in 2024-25 includes $326.4 million appropriation to 7 May 2025, which was not adjusted for the deferral of the Hydrogen Jobs Plan. As per the State Government's Cash Alignment Policy, additional cash held following the deferral of the Hydrogen Jobs Plan will be returned to the Department of Treasury and Finance.

Total expenses variance is mostly due to the recognition of impairment expense. The calculated impairment consists of costs that had been capitalised prior to 20 February 2025, including employee expenses, legal costs, consultancies and contractor costs that were directly attributed to the Hydrogen Jobs Plan.

Assets and liabilities for OHPSA were transferred to the Department for Energy and Mining immediately following the abolition of the Office of Hydrogen Power South Australia on 7 May 2025.

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Consultants disclosure

The following is a summary of external consultants that have been engaged by the agency, the nature of work undertaken, and the actual payments made for the work undertaken during the financial year.

Consultancies with a contract value below $10,000 each

Consultancies with a contract value above $10,000 each

Data for previous years is available at: 2023-2024-ohpsa-annual-report-statistics.xlsx

See also the Consolidated Financial Report of the Department of Treasury and Finance for total value of consultancy contracts across the South Australian Public Sector.

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Contractors disclosure

The following is a summary of external contractors that have been engaged by the agency, the nature of work undertaken, and the actual payments made for work undertaken during the financial year.

Contractors with a contract value below $10,000

Contractors with a contract value above $10,000 each

Data for previous years is available at: 2023-2024-ohpsa-annual-report-statistics.xlsx

The details of South Australian government-awarded contracts for goods, services, and works are displayed on the SA Tenders and Contracts website. View the agency list of contracts.

The website also provides details of across government contracts.

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Risk management

Risk and audit at a glance

During 2024-25, the Audit and Risk Committee (ARC) provided independent assurance over risk management, internal controls, compliance, and financial reporting. The Committee met five times under its Terms of Reference and Calendar of Focus.

The ARC oversaw implementation of the risk framework and endorsed the revised Risk Appetite Statement to reflect the machinery of government changes that occurred in May 2025. This also included review of the department's strategic risks, major project risks and cyber/technology risks to ensure they are effectively mitigated and/or aligned with the Strategic Plan objectives. The ARC also commissioned major project assurance mapping to identify potential coverage gaps across major programs.

The ARC reviewed the 2024-25 financial statements process, sector accounting updates, and had a private session with the Auditor-General's team.

The internal audit function performed several reviews over the DEM system and control environments. In addition, DEM has a Fraud and Corruption Policy which addresses the prevention, detection and response to fraud, and a supporting procedure for reporting suspected fraud. As outlined in Treasurer's Instruction 2, the documents are reviewed annually (last published in January 2024) and correspond with the South Australian Public Sector Fraud and Corruption Control Policy.

Fraud detected in the agency

NB: Fraud reported includes actual and reasonably-suspected incidents of fraud.

Strategies implemented to control and prevent fraud

The agency continued to take a risk-based approach to control and prevent instances of fraud. The control framework includes a Fraud and Corruption Control Policy and Plan, which were both reviewed in early 2025. This ensures alignment with the South Australian Public Sector Fraud and Corruption Control Policy issued by the Office of the Commissioner for Public Sector Employment.

The department assesses and reviews its risk of fraud every financial year. While fraud and corruption may not be eliminated, DEM is committed to minimising this risk through the implementation of control activities under the following controls categories:

• Governance and ethics
• Awareness and training
• Fraud prevention
• Detection and investigation
• Monitoring and reporting

Data for previous years is available at: 2023-2024-ohpsa-annual-report-statistics.xlsx

Public interest disclosure

Number of occasions on which public interest information has been disclosed to a responsible officer of the agency under the Public Interest Disclosure Act 2018:

0

Data for previous years is available at: 2023-2024-ohpsa-annual-report-statistics.xlsx

Note: Disclosure of public interest information was previously reported under the Whistleblowers Protection Act 1993 and repealed by the Public Interest Disclosure Act 2018 on 1/7/2019.

Reporting required under any other act or regulation

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Public complaints

Number of public complaints reported

Additional Metrics

Data for previous years is available at: 2023-2024-ohpsa-annual-report-statistics.xlsx

Service Improvements

Complaints and feedback submitted to the Office of Hydrogen Power South Australia (OHPSA) were managed by the Department for Energy and Mining (DEM) under a service level agreement.

Complaints and feedback are registered using DEM’s complaint management system. In line with PC039 - Complaint Management in the South Australian Public Sector, the department continues to assess the performance of the current Complaint Management System to identify trends, measure service quality and develop service improvements.

Compliance Statement

Appendix: Audited financial statements 2024-25

Audited financial statements 2024-25 (PDF, 511.5 KB)

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