The FFI study found that converting the Gibson Island ammonia facility, operated in Queensland by Incitec Pivot, to using hydrogen produced from renewable energy sources rather than fossil gas would be possible.
The two companies will now undertake an engineering design study that will detail the expected cost, timing and commercial opportunities of the plant conversion, with a final investment decision expected to follow.
Incitec Pivot said that the Brisbane ammonia facility could ultimately use up to 50,000 tonnes of renewable hydrogen a year to produce more than 300,000 tonnes of green ammonia, with Fortescue constructing and operating an onsite electrolysis plant to supply the facility with renewable hydrogen.
That level of green hydrogen production would require electricity supplies from around 1,000MW of wind and solar capacity. It would allow for a complete replacement of the ammonia plant’s existing fossil hydrogen feedstock.
Last month, Incitec Pivot announced that it planned to cease manufacturing operations at the Gibson Island facility as it was unable to secure an affordable supply of fossil gas. However, the prospect of retrofitting the facility with an onsite green hydrogen supply could provide the facility with a much needed lifeline.
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