(Muswellbrook / Australia) – In Australia, two companies are planning to expand the site of a coal-fired power plant into a renewable energy center for the production of green hydrogen and ammonia. An agreement to conduct a feasibility study was signed in August by Japanese oil and gas company Inpex Corp. and the Australian energy supplier AGL Energy Ltd. signed. The aim is to develop the project called “Hunter Energy Hub” in the state of New South Wales (NSW). AGL's aging Liddell coal-fired power station, currently located on the Muswellbrook site, is due to be decommissioned in April 2023.

Fortescue wants to produce hydrogen

The study is being carried out on behalf of AGL by the technical consulting firm GHD Advisory together with Fortescue Future Industries Pty Ltd (FFI), a subsidiary of the Australian mining group Fortescue Metals Group Limited, which in turn belongs to the empire of the mining magnate and billionaire Andrew Forrest. FFI will one day take over hydrogen production there.

Other companies are also interested in the project and are also participating. While While Inpex is particularly interested in exporting low-cost green hydrogen, the Sydney-based Australian energy infrastructure company APA Group wants to focus, among other things, on the potential for a transmission pipeline.

Australia's SGSP Assets Pty Ltd (more commonly known as "Jemena"), an operator of energy infrastructure assets, has also expressed its involvement. The company is owned by State Grid Corporation of China (60 percent) and Singapore Power (40 percent) and is particularly interested in the impact of injecting hydrogen into its existing gas transmission and distribution network. Osaka Gas Australia, a subsidiary of Japanese natural gas and energy company Osaka Gas Co Ltd., is hoping to obtain information on chemical derivatives made from hydrogen for domestic use and export.

Electrolysers with an output of up to two gigawatts

The focus of the feasibility study is on evaluating a large-scale production facility with an output of 150 megawatts to two gigawatts as well as the production of derivatives such as ammonia, says Markus Brokhof, chief operating officer of AGL. Among other things, factors such as the costs of renewable energy, the capital costs for the electrolyzer, logistics and usage will be examined. The project will be the "first of its kind in Australia and an example of how an energy hub can combine grid-scale batteries, solar thermal storage, wind and hydroelectric power plants."

The study is expected to be completed by the end of the year. Confirming the feasibility of such a renewable energy and hydrogen site, AGL expects this project, along with others, to create around a thousand permanent jobs in green energy, manufacturing, recycling and chemical production in the area previously dominated by mining industry. “The potential for green hydrogen production in the Hunter Region is world-leading and we are keen to accelerate implementation,” says Felicity Underhill, FFI Director for Eastern Australia and New Zealand.

AGL and FFI agreed on the project in December

The chairman and managing director of AGL, Graeme Hunt, and FFI boss Andrew Forrest had already agreed on the project in 2021 and signed a declaration of intent in December at the Liddell power plant site with large staff participation from both companies. In addition to Liddell, the planned Hunter energy center also includes the site of AGL's Bayswater coal-fired power station, barely four kilometers away.

Hunt says this is “the first “big step” to identify potential demand for green hydrogen in the Hunter Valley. “Liddell and Bayswater benefit from a unique energy infrastructure, with strong grid connections, established transport links, workshops and proximity to water supplies and industry.” For FFI founder and chairman Andrew Forrest, “the reuse of existing fossil fuel infrastructure to produce green hydrogen is the solution we were looking for,” he said in December.

 

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AGL and FFI had already announced in December 2021 that they would investigate the possibilities for using green hydrogen and signed a corresponding declaration of intent. From left to right: Markus Brokhof COO AGL, Graeme Hunt, Managing Director and CEO of AGL with FFI boss Andrew Forrest. © AGL Energy

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The Liddell coal-fired power plant, which is more than 50 years old and has an output of 500 megawatts, is scheduled to be shut down by the end of April 2023. © AGL Energy

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Felicity Underhill, FFI Director for Eastern Australia and New Zealand: “Very keen to implement the Hunter Energy Hub quickly.” © AGL Energy

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Andrew Forrest, Founder and Chairman of FFI: “Reusing existing infrastructure to produce green hydrogen is the solution we were looking for.” © AGL Energy

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Possible development of the Hunter Energy Hub at the Liddell power station site, New South Wales. In addition to Liddell, the planned energy center also includes the site of AGL's Bayswater coal-fired power station, a few minutes' drive away. © AGL Energy

Class schedule
Possible development of the Hunter Energy Hub at the Liddell power station site, New South Wales. In addition to Liddell, the planned energy center also includes the site of AGL's Bayswater coal-fired power station, a few minutes' drive away. © AGL Energy

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