FFI, IPL advancing plans for 500-MW electrolyser at Queensland ammonia plant

Fortescue Future Industries (FFI) and Incitec Pivot Ltd (ASX:IPL) are pushing ahead with “a world-first” project to convert IPL’s Gibson Island ammonia facility in Queensland, Australia to run on green hydrogen from a 500-MW electrolyser.

After positive feasibility studies, the parties will start a AUD-38-million (USD 24.5m/EUR 24.9m) front-end engineering design (FEED) phase for the project, aiming to achieve a final investment decision in 2023, according to an announcement today. First production could be expected around 2025. The Australian Renewable Energy Agency (ARENA) will support the FEED process with AUD 13.7 million of funding.

Do you know we have a daily hydrogen newsletter? Subscribe here for free!

IPL’s Gibson Island facility will stop traditional fertiliser manufacturing early in the new year after failing to secure affordable long-term gas supply, as announced by the company in late 2021.

The conversion would enable the facility to produce 400,000 tonnes of renewable ammonia per year for export, for use in fertiliser or as a low-carbon fuel for ports, airports and heavy transport.

“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,” said Mark Hutchison, chief executive of FFI, a subsidiary of Fortescue Metals Group (ASX:FMG).

The partners plan to file planning applications for the project shortly and a process to canvas potential off-takers is underway. FFI is also working with Powerlink to connect the project to the Queensland grid and with Urban Utilities on water supply.

(AUD 1 = USD 0.646/EUR 0.655)