A deal between two energy companies will see green hydrogen transported from Adelaide to Whyalla, where it will be used by customers including the local steelworks.
BOC Australia will be taking the excess renewable hydrogen from the Australian Gas Infrastructure Group (AGIG)'s Hydrogen Park located in the Tonsley Innovation District.
It will be transported via tube trailers to BOC's Whyalla Argon Purification Unit, which will use the hydrogen as an energy source to make high purity argon for industrial processes such as steelmaking.
BOC Director for Strategy and Clean Energy BD Vesna Olles said the green hydrogen allowed the company to 'de-carbonise' part of their production process.
"That's a really exciting step for heavy industry to begin showcasing how green hydrogen can de-carbonise processes," she said.
"It helps reduce the carbon footprint for our customers...it's a big milestone for BOC and shows other heavy industries that it can be done."
Previously the hydrogen used by BOC was transported from Victoria, but the new green hydrogen is being made in Adelaide which allows them to keep their manufacturing base in South Australia.
"In that essence we are reducing over 100,000 kilometres of transportation, and reducing 122,000 kilograms of Co2 as a result of moving our manufacturing to South Australia," Ms Olles said.
Expanding their capability at the AGIG site has generated more work for BOC and has the potential to generate jobs in the future.
"Longer term when we look at the green hydrogen for mobility there's long-term opportunities for more local employment," Ms Olles said.
BOC have had a presence in Whyalla for over 20 years, employing around 10 people locally through the Argon Purification Unit and its Gas & Gear business on Norrie Avenue.
GFG Alliance Chairman Sanjeev Gupta has previously advocated for a hydrogen hub to be based at either the Whyalla Steelworks or his recently acquired smelter in Bell Bay, Tasmania.
Mr Gupta has also flagged an investment of $1 billion in renewable energy, including his 280MW Cultana Solar Farm.