South Australia hopes to spark a hydrogen gold rush by cutting red tape to push through clean energy projects on farmland.
The state leads the country in wind and solar generation but SA Premier Peter Malinauskas says new laws would open up vast tracts of land for investors to produce renewable energy and hydrogen "at a scale seen unlike anywhere else in the world".
The legislation would slash red tape for renewable energy projects and allow the government to broker large-scale development on farmers' land.
Mr Malinauskas says SA must take advantage of its natural wind and solar bounty to power green hydrogen production and energy-intensive industries like steel manufacturing.
"There is a hydrogen and renewable energy race on around the country, it's a race that is on around the world," Mr Malinauskas told reporters on Wednesday.
"We want to win that race."
Opposition from landholders to projects on their property has been a major roadblock for eastern states in their energy transition, but Energy Minister Tom Koutsantonis says he is not concerned about it in his state.
"I think SA's social licence is a lot better than it is on the eastern seaboard," he said.
Consultation with pastoralists has shown most welcome renewable development on their land as it gives them an extra revenue stream while still allowing them to use the land for cropping or livestock grazing, Mr Koutsantonis said.
But he said some leaseholders were locking up vast swathes of resource-rich government land because they are land-banking for future development opportunities.
"We're stepping in and saying that resource belongs to the people of SA."
Opposition leader David Speirs said his party was inclined to support the legislation but was concerned about protections for farmers who don't want their land sold to developers.
"There is no doubt that agricultural entities across the state - farmers, people who have got a sense of ownership of their land - they will not be impressed by this," he said.
Renewable energy already accounts for 70 per cent of SA's electricity generation and the state recently broke a solar generation record.
Rooftop and large-scale solar on Sunday reached 120 per cent of SA electricity demand with the excess exported interstate.
