APA Group and Wesfarmers Chemicals, Energy and Fertilisers (WesCEF) have signed a new MoU to investigate the potential of feeding renewable hydrogen to existing ammonia production facilities in Kwinana, near Perth. Sections of APA’s existing Parmelia Gas Pipeline are being assessed for conversion to carry 100% hydrogen. If successful, the pipeline could become a “pure renewable hydrogen service”. In Kwinana, plans are already underway for multiple newbuild hydrogen & ammonia projects.
Mitsui & Co., Japan Oil, Gas & Metals National Corporation (JOGMEC) and Wesfarmers will explore the feasibility of a blue ammonia production plant in Western Australia (WA). Emissions from hydrogen production will be stored in depleted gas fields in the Perth Basin (owned by Mitsui).
Last month the Commonwealth Bank of Australia (CBA) announced that it has “signed an AUD $400 million [USD $256 million] three-year bilateral sustainability-linked loan” with Australian conglomerate Wesfarmers. This represents at least the second occasion on which an ammonia producer has linked its cost of capital to progress in meeting sustainability goals. In July 2019, Yara announced that it had signed a USD $1.1 billion revolving credit facility with a group of 13 lenders whose margin “will be adjusted based on Yara’s progress to meet its carbon intensity target by 2025.”
ANNUAL REVIEW 2019: Green ammonia is no longer a lonely venture for Yara, which used to appear alone among fertilizer producers in its desire to reduce carbon dioxide emissions from ammonia plants. While dozens of green ammonia demonstration projects and prototype technologies have been demonstrated in recent years, this progress was mostly achieved by energy companies and technology start-ups - and Yara. In the last year, however, fertilizer producers on five continents have begun feasibility studies, launched pilot demonstrations, or simply gone ahead and re-engineered their ammonia plants to replace fossil fuel inputs with renewable hydrogen.