- Lead Organisation
Queensland Nitrates Pty LtdLocation
Moura, QueenslandARENA Program
- Start Date
- Project PartnersNeoen Australia Pty Ltd, Advisian Pty Ltd (part of the Worley Group)This hydrogen project was completed on 14 July 2020.
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.
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.
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.
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
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.
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.
Hydrogen offers a way to produce a renewable, emissions-free fuel using the power of the sun and wind.
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