Government-industry collaboration to boost ammonia production in Australia
By on April 08, 2024
Big players sign on in South Australia
Click to learn more. Amp Energy, Fortescue, H2U, Origin Energy and Santos will develop projects as part of the Port Bonython Hydrogen Hub, with a focus on common-user infrastructure. Source: Office of Hydrogen Power South Australia.
Five major ammonia industry players – Amp Energy, Fortescue, The Hydrogen Utility (H2U), Origin Energy and Santos – have signed development agreements with the South Australian state government to utilise land at the Port Bonython Hydrogen Hub. Located near Whyalla in the Upper Spencer Gulf, the hub will be a common user facility for hydrogen production and export.
The agreements will enable the project partners to secure a long-term lease on land at the Port. Each party will conduct feasibility studies and early design works for proposed projects, collaborating with the Office of Hydrogen Power SA to determine required infrastructure and carry out environmental assessments.
Infrastructure development master planning is currently ongoing, helped by the Australian federal government’s AU$70 million matched funding. The hub’s common-user infrastructure will feature marine export infrastructure, electricity transmission and water supply. To minimise community impact and safeguard local marine life, scientific studies to improve understanding of the marine and terrestrial environment at Port Bonython are in progress.
South Australia is already a leader in the global energy transformation, and with some of the world’s best wind and solar resources, we have a competitive edge to produce renewable hydrogen. Our Government has recognised this unique opportunity and is investing in South Australia’s renewable future through the world-leading Hydrogen Jobs Plan and the Port Bonython Hydrogen Hub.
Peter Malinauskas, Premier of South Australia, in his govt’s official press release, 26 February 2024
The progression of the Port Bonython Hydrogen Hub is welcomed by Amp Energy as part of Amp’s South Australian hydrogen portfolio that includes the Cape Hardy Green Hydrogen Hub. We are pleased to collaborate with the Government of South Australia in advancing the development of the Port Bonython Hydrogen Hub, underscoring our commitment to sustainable energy solutions and collective progress toward a greener future. Amp’s development of transmission-connected green hydrogen and ammonia production facilities at these two strategic sites in South Australia is critical to our continued global growth and long-term strategy.
Paul Ezekiel, AMP Energy President and Co-founder, in South Australia Government’s official press release, 26 February 2024
The South Australia Government has shown it is serious about leading the green reindustrialisation of its economy. This aligns with Fortescue’s vision to step the world beyond fossil fuels while continuing to be one of the highest returning companies on the Australian Stock Exchange. As one of the State’s Project Partners at the Hub, Fortescue is in the early scoping phase of its proposed Integrated Port Bonython Hydrogen project.
Mark Hutchinson, Fortescue Energy CEO, in South Australia Government’s official press release, 26 February 2024
As a long-term proponent of South Australia’s world-class green hydrogen potential, H2U is pleased to partner with the South Australian Government to progress the Port Bonython Hydrogen Hub. The development of the Port Bonython Industrial Precinct and marine export infrastructure at the Port Bonython Jetty will unlock hydrogen production and export from the abundant renewable energy resource in the Eyre Peninsula and Upper Spencer Gulf regions of South Australia.
Attilio Pigneri, H2U Founder and CEO in South Australia Government’s official press release, 26 February 2024
Amp is already active in South Australia including in a partnership with Iron Road Ltd to build up to 5 GW of electrolyser capacity in the Cape Hardy Port Precinct, allowing 5 million tonnes-per-year renewable ammonia production.
In 2020, Hydrogen Utility (H2U) purchased a 171-hectare site (also in Cape Hardy) to build a up to 3 GW electrolyser capacity for renewable hydrogen and ammonia production, targeting around 5,000 per day of renewable ammonia.
In addition to South Australia’s strong renewable energy potential, the clean hydrogen & ammonia industry is supported by favourable policy including the AU$593 million Hydrogen Jobs Plan, preparations for which are underway.
Federal funding for Pilbara hub
Click to learn more. The common user facility at the Pilbara Hydrogen Hub will be accompanied by the Clean Energy Training and Research Institute to develop a skilled workforce for the emerging clean hydrogen/ammonia industry. Source: Western Australia Government.
The federal government has also agreed on total funding of AU$140 million to support the building of the Pilbara Hydrogen Hub in Western Australia. Similar to Port Bonython, the hub will feature common-user infrastructure to be used by producers, users and exporters of hydrogen, thereby helping scale the industry.
The funding will be a 50:50 contribution from the federal and the Western Australia state governments. The common-user facility will include upgraded port infrastructure with capacity to support up to 492,000 tons per year of renewable hydrogen production. Construction is scheduled to start this year through to 2028 when it’s expected to become operational. Target industries include green steel and iron-making.
The construction and operation phases are projected to create upwards of 1,000 jobs. The project will also see the development of the Clean Energy Training and Research Institute to ensure skills development to meet the demands of the emerging hydrogen industry.
As the project will be situated on traditional lands of the Ngarluma, Kariyarra and Murujuga peoples, the Australian and WA Governments are working with the traditional custodians of the Pilbara region to build a hydrogen hub that creates economic opportunities for the local people.