Feasibility Study for a Green Hydrogen and Ammonia Project
- $1.62m Funded by ARENA
- $2.89m Total project cost
Summary
The Feasibility Study for a Green Hydrogen and Ammonia Project is a study by Queensland Nitrates (QNP), Neoen and Advisian (as part of the Worley Group) of using green hydrogen to produce ammonia at QNP’s existing manufacturing plant in Queensland.
Key results
The study found that the technologies themselves are technically feasible. Much of the learnings from the feasibility study arose from the novel alignment of the renewable energy generation assets, the electrolysers, the hydrogen storage and the ammonia plant.
The ammonia plant is designed to be operated continuously at consistent rates, while the electrolysers will be operated intermittently to minimise electricity cost meaning that hydrogen storage is required.
The feasibility study determined that the generation assets could be located remote from the plant and the demand responsive behaviour provided a valuable grid stabilisation service. The highest technically viable electrolyser load factor, with higher power price but lower capital cost was the optimal solution.
The feasibility study determined that the project is economically viable with sufficient funding support in the form of grants concessional loans. Without funding assistance, the margin between the cost of inputs (primarily energy) and the value of the output (ammonia, a commodity with pricing linked to global benchmarks) is insufficient to support the project.
Learn more
Report: QNP Green Ammonia Feasibility Study
The purpose of this report is to provide information regarding the QNP green hydrogen to ammonia project feasibility study.
Media Release: Queensland Green Ammonia Plant Could Use Renewable Hydrogen
ARENA provided $1.9 million in funding to QNP to assess the feasibility of the construction and operation of a renewable ammonia plant at its existing facility near Moura in Central Queensland.
Diagram: Feasibility Study for a Green Hydrogen and Ammonia Project
How the technology works.
Need
The aim of the Feasibility Study for a Green Hydrogen and Ammonia Project is to determine the feasibility of producing green hydrogen at commercial scale to feed into an existing ammonia chemical facility.
The proposed plant would produce 20 per cent of the ammonia used by QNP, which is currently based on hydrogen produced from natural gas.
The proposed project aims to progress the commercialisation of green hydrogen production for domestic and international use. Ammonia production is currently the largest use of hydrogen, consuming about half of global hydrogen production.
Action
Each project participant will contribute to the study through the following:
- QNP will provide market and business case analysis for the green ammonia supply as well as on-site plant experience. The business case analysis will include comparison with alternative (more traditional) ammonia supplies
- Advisian and the broader Worley Group will complete the overall process modelling and integration engineering, as well as project management, electrical off-take advisory and a range of environmental, social and regulatory approval work
- Neoen will examine the renewable based electrical supply for the proposed new plant.
QNP, the Worley Group and Neoen will work together to determine the optimal operation of the new plant with the Queensland electricity grid
Outcome
On completion of the feasibility study, the project participants will determine the viability of the project based upon forecast return on investment and risk assessments. This will help inform a decision regarding financial investment for the actual plant.
In a world first, the study will investigate green hydrogen to ammonia at a commercial scale, including the technical, social and environmental issues associated with a new clean industry.
Additional impact
Through information sharing, the feasibility study will provide opportunities for government, community and industry to expand knowledge, and support the emerging green hydrogen economy. The project will provide learnings and data to industry and enable viable commercial business cases for similar and even larger green hydrogen projects.
ARENAWIRE Blogs
How could renewable hydrogen power our lives?
Hydrogen offers a way to produce a renewable, emissions-free fuel using the power of the sun and wind.
Renewable future beckons for Queensland ammonia plants
Dyno Nobel will assess the feasibility of creating the world’s largest renewable ammonia plant at their Moranbah facility in the heart of the coal-rich Bowen Basin.
