Australia Heads Towards Becoming the Renewable Energy Superpower with its New Green Hydrogen and Ammonia Projects

With the dawning realization towards the environmental benefits of green and sustainable energy, major economies, energy companies and petrochemical industries are investing huge amounts and efforts in establishing a green economy. In line with the global market sentiments, Australia has aspired to build an innovative portfolio for green hydrogen and ammonia operations that could cater to both domestic and international markets.

Australia’s leading green energy solutions provider, Fortescue Future Industries (FFI), has planned to build an electrolyser Gigafactory in Algoda, Queensland, Australia, under a 50-50 joint-venture with Plug Power, a USA based green hydrogen producer. The planned facility will house a factory to manufacture 2 GW proton-exchange membrane (PEM) electrolysers having the potential to translate into fuel cells and other hydrogen-related refuelling and storage infrastructure. The project is due off the ground in early 2023 during which time the construction of solar panels, wind turbines, electrical cables will also take off. The planned project, attracting an investment of USD 115 million, is expected to double the total global green hydrogen installed capacities. Plug Power has also agreed to provide 250 MW electrolyser solutions by the second half of 2022 to deploy them in existing Australian projects. 

The second major project announced by FFI involves a partnership with Australia’s major fertilizer producer Incitec Pivot for the generation of green ammonia by transforming Incitec Pivot’s ammonia production units in Brisbane to run on green hydrogen feedstocks. The project for zero-pollution fertilizer production will be executed by installing an on-site electrolysis plant having the capacity to produce 50,000 tons of green hydrogen annually for ammonia production. 

Green hydrogen is produced by splitting water in an electrolyzer which is powered by renewable sources like solar and wind energy. Hydrogen is widely used to produce fertilizer, heat buildings, generate electricity, and fuel automotive, that drive the global demand for hydrogen which is projected to register over 5% growth in the coming years. Green ammonia is produced from the Haber-Bosch process that employs nitrogen (separated from the air) and green hydrogen as feedstocks. Ammonia is predominantly used as a raw material for producing nearly all nitrogen-based fertilizers. According to the ChemAnalyst database, the global demand for ammonia is anticipated to rise at a CAGR of 3.5% with the fertilizer sector being the major driver.

As per ChemAnalyst, the proposed projects indicate FFI’s intentions to rule the green energy and fertilizer markets and empower the Australian economy. These projects are expected to create a thriving green energy ecosystem that will be committed to meeting the projected high demand for green hydrogen and green ammonia by facilitating higher supplies of these products to the downstream sectors.