Energy generator AGL Energy (AGL) and green energy innovator Fortescue Future Industries (FFI) have expanded feasibility study with additional partners to explore the development of a green hydrogen and ammonia production facility at AGL’s Hunter Energy Hub.
Independent technical consultancy GHD Advisory is carrying out the feasibility study for AGL as the hub provider and Fortescue Future Industries (FFI) as the exclusive producer of green hydrogen at the site.
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The feasibility study, which is mapping key operational and commercial plans for the project as well as developing a production timeline, is also leveraging the input of additional key industry and consortium partners including APA Group, INPEX Corporation, Jemena and Osaka Gas Australia.
AGL chief operating officer Markus Brokhof said the feasibility study, due for completion by the end of the year, was another big step forward in AGL’s vision for an industrial low carbon energy hub at the site of Liddell and Bayswater power stations.
“As we create our Hunter Energy Hub, our aim is to develop strong partnerships that enable an efficient ecosystem and create a circular economy,” Brokhof said.
“By working hand in hand with Fortescue Future Industries, we will be supporting Australia’s emerging green hydrogen industry and bringing our expertise in large-scale renewable generation to the fold.”
“Early estimates suggest the site can support a hydrogen facility of up to 2GW in scale, but we will also test critical inputs including renewable energy costs, firming requirements, electrolyser capital costs, logistics and utilisation.”
“The feasibility scope will focus on assessing the accelerated implementation of a large-scale production facility from minimum 150MW and up to 2GW of hydrogen and preferred derivatives including ammonia for export and domestic use.”
“Our Hunter Energy Hub will be the first of its kind in Australia and will be an example of how an energy hub can combine grid-scale batteries, solar thermal storage, wind and pumped hydro. It will be an industry-leading model for our other large generation sites and others across the country.”
“Liddell and Bayswater benefit from unique energy infrastructure, positioned with strong grid connectivity, established transport links, workshops and proximity to water supply and industrial activity.”
“The future is about bringing the best in low-carbon technologies together to shape a cleaner energy future to ensure customers have sustainable, secure and affordable electricity.”
Since announcing the Memorandum of Understanding (MOU), AGL and FFI have been developing and finalising the scope of the feasibility study, with AGL signing additional partners to the MOU.
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Following the feasibility study AGL expects this project, along with the others in the Hunter Energy Hub, to drive the development of around 1,000 permanent jobs across energy production, advanced manufacturing, recycling and the production of chemicals.
FFI director (East Australia and NZ) Felicity Underhill said, “The scale of green hydrogen production potential in the Hunter region is world leading and we’re keen to accelerate the delivery of this potential.”
