Nearly $3 million in funding will go towards studying the feasibility of producing renewable hydrogen in Queensland.
About $1.9m funding for a study by Queensland Nitrates Pty (QNP) to build and operate a renewable ammonia plant at its existing facility near Moura has come from the Australian Renewable Energy Agency (ARENA), which is also putting $980,000 towards research into a green ammonia facility for Dyno Nobel Moranbah Pty, a business of Incitec Pivot.
ARENA has also recently launched new investment priorities which includes accelerating hydrogen as an alternative fuel source, including for transport.
It has supported Toyota’s hydrogen centre at its Altona former car manufacturing plant, ATCO’s hydrogen microgrid in Western Australia, Jemena’s power-to-grid gas demonstration in western Sydney and BOC’s renewable hydrogen refuelling project at Bulwer Island.
Last year, ARENA awarded $22.1m to 16 hydrogen research projects.
The Queensland consortium, led by QNP and partners Neoen and Worley, proposes to produce 20,000 tonnes annually of ammonia from 3600 tonnes of renewable hydrogen. The new plant would provide up to 20% of Queensland Nitrates’ current ammonia requirements, which is presently manufactured from natural gas.
The aim of the study is to determine the technical and economic feasibility of producing renewable ammonia at a commercial scale, helping to further progress the commercialisation of renewable hydrogen production for both domestic and international use.
“We look forward to the success of the project including the contribution it makes to the development of a larger renewables-based hydrogen industry,” QNP general manager David Armstrong says.
If feasible, QNP would produce hydrogen via electrolysis for one fifth of its ammonia production. The electrolysers would be powered by wind, solar and stored renewable energy from facilities owned and operated by Neoen.
Domestic and international markets for renewable hydrogen are emerging, with Australia poised to take advantage.
“Companies looking at creating hydrogen via electrolysis will help establish a local economy for hydrogen and ammonia production in Australia. This is the first step in the country tapping into the huge potential of a renewable hydrogen export industry,” ARENA chief executive officer Darren Miller says.
“ARENA is helping to create a market for hydrogen and to ensure that Australia remains at the front of this shift to renewable energy. ARENA is helping industry produce hydrogen at a price, quality and reliability point where it can be competitive with natural gas.”
ARENA is also contributing to the National Hydrogen Strategy led by chief scientist Alan Finkel.
Last year, ARENA commissioned a report by ACIL Allen Consulting which found Australia is in a strong position to become a leading exporter of hydrogen, as global demand increases over the next decade, predicting Australia’s hydrogen export industry could be worth $1.7 billion annually and create 2800 jobs by 2030.
