This report presents the outcomes of an engineering and economic feasibility study to evaluate the construction of a renewable hydrogen facility (RHF) for production of feedstock for the Dyno Nobel Moranbah (DNM) ammonium nitrate production facility in Moranbah, Queensland.
Report extract
The purpose of this report is to present the outcomes of an engineering and economic feasibility study to evaluate the construction of a renewable hydrogen facility (RHF) for production of feedstock for the Dyno Nobel Moranbah (DNM) ammonium nitrate production facility in Moranbah, Queensland. The study was commissioned by DNM and undertaken by ANT Energy Solutions (ANT).
The maximum purchase price of renewable hydrogen (RH) was calculated by DNM based on next-best-alternative comparison with imported ammonia. The investment in additional ammonia manufacturing capacity could be justified if the cost of hydrogen supplied to DNM was below AU$2 per kilogram. Accordingly, this report examines the viability of developing a renewable hydrogen facility with hydrogen offtake at this price.
A long-term take-or-pay RH offtake agreement provides a secure basis for equity investment in the RHF. Market engagement has identified numerous investors interested in providing equity investment in the RHF, however all investors require an internal rate of return (IRR) of greater than 4%, with most expecting significantly higher due to the scale-up and long- term operational risks.
![Hydrogen energy icon](/assets/2019/04/Hydrogen.svg" "Hydrogen energy icon")
