Keppel Infrastructure & Incitec Pivot Ltd: renewable ammonia from Gladstone

The pair will develop a renewable ammonia production facility at Gladstone in Queensland, Australia. The MoU includes a plan to build an end-to-end ammonia export supply chain to Singapore and other key Asian destinations. It also indicates that the ammonia would be used domestically to “support the decarbonisation of IPL’s domestic manufacturing assets” in Australia, exported to Singapore to “meet Keppel’s zero- or low-emissions power generation needs”, or marketed and sold to customers in Asia to meet energy needs.The new facility will produce up to 850,000 tonnes of ammonia per year, based on renewable hydrogen feedstock. This follows on from a feasibility study conducted by Keppel, IPL and Temasek in 2021, which investigated the potential of ammonia exports from Australia to Singapore (with positive findings).

IPL is pleased to be progressing this exciting opportunity with Keppel and the Queensland Government. Operating in a hard to abate sector requires us to be creative in addressing the challenges and opportunities of climate change. This innovative international partnership with Keppel is one of several decarbonisation projects we are progressing as part of our Ambition to be Net Zero by 2050.

Jeanne Johns, Managing Director & CEO of IPL in Keppel Infrastructure’s official press release, 26 May 2023

The pair will work closely with the Queensland state government on infrastructure development, licenses and approvals.

We are redoubling our efforts in making green hydrogen and ammonia reliable and commercially viable energy sources. Keppel’s strong track record in developing and operating large-scale energy and environmental infrastructure combined with the expertise and experience of our esteemed partners will enable us to produce, store and transport green hydrogen and ammonia in a safe, scalable and cost competitive manner for end-users in Australia, Singapore and globally.

Cindy Lim, Keppel Infrastructure CEO in the Queensland state government’s official press release, 26 May 2023

CQ-H2

The source of the renewable hydrogen feedstock will be the nearby mega-project CQ-H2, or the Central Queensland hydrogen project. The project consortium – Iwatani Corporation, Kansai Electric, Marubeni, Keppel and the government-owned energy utility Stanwell – have committed AUD 117 million towards a FEED study, which will shortly commence. Located 20km west of Gladstone, CQ-H2 is targeting renewable hydrogen production from 2028, with 640 MW of installed electrolysis connecting to an under-development solar farm. In the 2030s this will increase to 2-plus GW of electrolysis and further renewable energy generating assets. CQ-H2 is also targeting liquid hydrogen exports from Gladstone Port. FID on the project is due in 2024.

Indigenous engagement

Also in Gladstone, developer H2U has signed an agreement with the local First Nations Bailai, Gurang, Gooreng Gooreng, Taribelang & Bunda Peoples Aboriginal Corporation to collaborate on the H2-Hub™ Gladstone project. A near two-million-tonnes-per-year, export-focused ammonia project with confirmed offtakers already in place, H2-Hub is in its early design stages.