South Australia has what the world wants - a unique combination of plentiful solar and wind resources, valuable minerals including copper and magnetite iron ore, and steel manufacturing capability - all centred in and around the Upper Spencer Gulf.

The State Government last month launched the State Prosperity Project - an initiative to unlock the full potential of renewable energy, critical minerals and green manufacturing to reindustrialise this region and herald a new era of prosperity for the state.

The plans were outlined in the recent Major Economic Summit, hosted by the State Government in the region's three major towns - Whyalla, Port Augusta and Port Pirie.

Public forums were held in each of the towns, where the hundreds of community members who attended got to learn about the economic opportunities in the Upper Spencer Gulf and to ask questions.

A number of announcements were made during the summit, which are outlined below.

Hydrogen partnerships

South Australia’s first large-scale clean hydrogen production precinct, the Port Bonython Hydrogen Hub, has taken a major step with five major companies signing Development Agreements to use the facility.

From 2025 onwards, the South Australian Government’s investment of more than half a billion dollars into green hydrogen is expected to create thousands of jobs across renewable energy projects, the development of a hydrogen export industry, and a production and storage facility near Whyalla.

Green hydrogen is a clean and reliable energy source that will reduce the state’s reliance on electricity powered by fossil fuels. Local production will create new opportunities for South Australia’s heavy industry sector to use hydrogen to decarbonise its processes and become more competitive against imported goods.

In a significant step forward for the project, the State Government has signed Development Agreements with Amp Energy, Fortescue Energy, The Hydrogen Utility (H2U), Origin Energy and Santos, which provide a clear pathway for the project partners to secure a long-term lease on land at Port Bonython.

Copper investment

Activity is escalating at Oak Dam – one of the most significant copper discoveries in recent history – as it looms as a key project to unlock South Australia’s potential as the nation’s copper capital.

BHP has significantly bolstered its operations at the site since the State Government gave approval for the Oak Dam exploration program last year – with 12 rigs presently on site and most of its 150-person drilling camp now occupied.

BHP has established an integrated copper "province", or collective, in the state’s far north by combining the Prominent Hill and Carrapateena mines with its existing Olympic Dam mine, smelter and refinery, and Oak Dam exploration prospect.

Copper is becoming an increasingly important mineral as the world electrifies and moves away from fossil fuels.

Green steel

The State Government will soon officially begin its search for partners to kickstart South Australia’s Green Iron and Steel industry, cementing the state’s position as a green iron powerhouse.

The Government announced that an expressions of interest process would commence in June, seeking involvement from businesses to jointly investigate the development of a hydrogen-based Direct Reduction Iron (DRI) plant in South Australia.

The commercial de-risking study will be a crucial first step in using our natural endowment of quality iron ore to provide green iron to the world.

The Government aims to establish the DRI plant in South Australia before the end of the decade.  DRI plants provide an alternative to using coal fired furnaces to convert iron ore to steel using renewable sources, such as hydrogen, to reduce emissions from the process by 95 per cent.

Global demand for green steel - steel produced without the use of fossil fuels, greatly reducing its carbon footprint - is soaring.

Regional housing

The State Government’s focus on improving regional housing supply for essential workers has reached a key milestone, with work starting on the first houses.

Building has started in Port Augusta on the first of 35 homes to be delivered as part of the Regional Key Worker Housing Scheme.

The four, two-and-three-bedroom homes in Port Augusta are located to the west of Joy Baluch AM Bridge and will be built by Constructwell.

The Regional Key Worker Housing Scheme has a specific goal to secure suitable housing in regional areas for essential government workers, such as police officers, teachers and medical professionals.

The program will deliver 35 new regional homes across Port Augusta (4), Mount Gambier (6), Bordertown (5), Renmark (5), Ceduna (6) and the Copper Coast (9) to address the critical need for purpose-built government worker housing.

Additionally, 32 cabins will be built at Discovery Parks’ Whyalla Foreshore Caravan and Holiday Park to accommodate the earliest Hydrogen Jobs Plan workforce, under an agreement between the State Government and G’day Group, owner of Discovery Parks and workforce accommodation business Discovery Workstay.

New renewables target

South Australia will bring forward its renewable energy target by three years, as the State Government accelerates decarbonised economic development.

Under the ambitious new target, electricity generation would be sourced from net 100 per cent renewables by 2027.

Under the renewables plan, excess energy generated from large-scale wind and solar farms will be stored and utilised to provide a consistent output of supply, providing additional grid stability for homes and businesses around the state.

Wind and solar power is far cheaper than electricity generated by gas, so an increased proportion of renewables will push prices lower.

Technical college for Port Augusta

A significant relationship has been forged between global resources company BHP and the State Government’s Technical College at Port Augusta.  Construction on the new technical college is due to begin in the coming months, with the work to be undertaken by Sarah Construction.

The Port Augusta Technical College is one of two regional facilities among five technical colleges committed to by the State Government as part of a $208 million plan to provide an alternative senior secondary option that equips students with the workplace skills needed in areas of high demand.

The Technical College will open in 2025 and will be co-located on the Port Augusta Secondary School site on the corner of Victoria Parade and Hobby Avenue.

Northern Water

The State Government has reached agreement with the private sector to fund further studies, planning and negotiations to inform a final investment decision on the Northern Water project – a critical, sustainable supply of water for South Australia’s north.

If progressed, Northern Water would see construction of a 260 megalitre a day desalination plant on the Eyre Peninsula, and a 600km pipeline to transport desalinated water to the Far North.

A comprehensive business case has found the project has the potential to generate more than $5 billion in annual economic benefit and 4000 ongoing jobs by facilitating further development of industries crucial to the global decarbonisation effort, including copper, hydrogen and green iron, along with defence, pastoral and community uses.

The Government joined representatives from major companies who have agreed to co-fund the critical next stage of investigations, ahead of a final investment decision on the project in the first half of 2026.

BHP, Origin Energy, Amp Energy and Fortescue Energy are among private sector companies to contribute to the expected pre-final investment decision costs of approximately $200 - $230 million.