The conversion of an existing ammonia facility into a green hydrogen-run facility is a step closer to reality as Fortescue Future Industries (FFI) and Incitec Pivot Limited (IPL) push ahead with its plan, which is set to be a world-first.
FFI and IPL will now progress planning for the conversion of IPL’s Gibson Island ammonia facility in Brisbane to enable it to run on green hydrogen to its final stages. Front-End Engineering Design and the execution of a framework agreement that will push the project towards Final Investment Decision will also commence.
“Progressing this project into this final assessment stage is an important milestone in what will be a world-first conversion of an existing facility to become an industrial-scale producer of green hydrogen and green ammonia.
“This collaboration aims to put Queensland and Australia ahead of the pack – not only in terms of the scale of production and supply of green hydrogen and green ammonia, but also in terms of demonstrating to the world that projects like this are feasible and that Australia has the foresight, the commitment, and the know-how to invest in and deliver them.
“We’re so pleased to have the support of a partner in IPL who are as invested as we are in developing real-world solutions to reduce our reliance on fossil fuels, and equally appreciate the support of the Federal Government who are a key enabler of us progressing the project to its final development phase,” Fortescue Future Industries CEO Mark Hutchison said.
A feasibility study has confirmed that the project could include the construction of a 500MW hydrogen electrolysis facility on site that will produce green hydrogen along with the retrofitting of the existing ammonia facility to enable it to run on green hydrogen.
The Gibson Island facility is expected to cease traditional fertiliser manufacturing operations by early next year.
The conversion of the ammonia manufacturing and port facility in Brisbane is part of IPL’s decarbonisation strategy and it is also in line with FFI’s goals to “help heavy industry decarbonise”.
“The potential conversion of Gibson Island to green ammonia shows our commitment to pursuing opportunities to help create a more sustainable world in the new and emerging opportunities stemming from green ammonia.
“We are very pleased to be able to partner with FFI on what would be a world-first project, and I extend my thanks for the partnership and support from both the Federal and Queensland Governments,” Incitec Pivot Limited Managing Director and CEO Jeanne Johns said.
Getting Front-End Engineering Design (FEED) underway is a critical step for the development of the project and it will also “firm up” the technical specifications and cost of the project as well as underpin procurement and take the project towards Final Investment Decision – expected in 2023.
FEED works are expected to cost about $38 million, and the Australian Government has committed $13.7 million through the Australian Renewable Energy Agency.
Both FFI and IPL are working with the Queensland Government to understand how this development can deliver benefits to local energy markets and support the delivery of the Queensland Energy and Jobs Plan and broader development objectives.
“Through actions of the Palaszczuk and Albanese Governments, we are building a clean energy ecosystem to facilitate onshore manufacturing, starting with the world’s largest electrolyser plant in Gladstone and now a potential green hydrogen facility to support local manufacturing in Brisbane too,” Minister for Energy, Renewables and Hydrogen Mick de Brenni said.
Approximately 100 jobs are going to be supported across the project as it progresses towards a Final Investment Decision.
Applications for planning approval for this project will soon be submitted. In addition, FFI is working closely with Powerlink to connect the project to the Queensland electricity transmission network as well as with Urban Utilities for a sustainable water supply for the project.
Both domestic and international processes to canvas potential buyers of the green ammonia produced from the converted facility are also underway.
First production from the converted Gibson Island ammonia facility is expected in 2025.
Fortescue Future Industries said in a statement: “By virtue of running on green hydrogen, the facility could ultimately produce up to 400ktpa green ammonia, which can be exported to international markets as well as used in fertiliser or to help decarbonise local industry through its potential use as a low-carbon fuel source for ports, airports and heavy transport.”
Source: Australian Mining; Renew Economy; Fortescue Future Industries; Hydrogen Central; Energy Matters; ARENAWire