Fortescue, AGL join forces to build green hydrogen hub in Hunter valley

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Fortescue, AGL join forces to build green hydrogen hub in Hunter valley

AGL and FMG partnership 
Image source: Copyright © 2021 Kalkine Media

Highlights 

  • AGL Energy has finalised a deal with Fortescue Future Industries (FFI) to convert its Hunter Valley coal-fired power stations into a major renewable hydrogen and industrial hub.
  • Andrew Forrest had inked various deals as part of his ambitious plan to produce 15 million tonnes of green hydrogen annually by 2030.
  • AGL Energy CEO Graeme Hunt stated that the site could support a hydrogen facility of gigawatt scale.

One of Australia’s biggest retail electric energy providers, AGL Energy Limited (ASX:AGL) has finalised a deal with Fortescue Metals Group’s (ASX:FMG) wholly owned subsidiary Fortescue Future Industries (FFI) to convert its Hunter Valley coal-fired power stations into major renewable hydrogen and industrial hub.

The pivotal decision comes as Liddell coal-fired power station is expected to close in early 2023 and the Bayswater power stations are anticipated to run for around a decade.

Don’t Miss: Biden's push for hydrogen fuel adds muscle to the climate fight

Man on hydrogen mission

Interestingly, FFI boss Andrew Forrest is a man on a green hydrogen mission. The millionaire has already inked various pacts as part of his ambitious plan to produce 15 million tonnes of green hydrogen annually by 2030, and 40 million by 2040. Andrew, nicknamed as Twiggy, has also planned to build a 2GW electrolyser in Australia’s Queensland with Plug Power.

Green energy

Source: © Andreus | Megapixl.com

What’s more, FMG has also inked various agreements to enhance green hydrogen capacity globally including development of a 15GW green hydrogen project in Argentina. Moreover, the company also seeks to look into the developments that could reduce the cost of green hydrogen production in Papua New Guinea.

Good Read: The Rising Role of Hydrogen in Canada’s Zero Emissions 2050 Target

The ultimate support for hydrogen facility

AGL Energy CEO Graeme Hunt stated that the site could support a hydrogen facility of gigawatt scale, depending on renewable energy costs, electrolyser capital costs, firming requirements, and demand for product and logistics.

AGL plans to execute a feasibility study over the next one year to map the key commercial and operational plans for the project, enabling the development of a production timeline.

-Hydrogen plant

Source: © Audioundwerbung | Megapixl.com

Forrest also pointed that Bayswater and Liddell coal power stations accounted for about half of the carbon dioxide emissions in New South Wales and the new hydrogen hub would reduce these emissions significantly to reinforce the role of green hydrogen in decarbonising in Australia.

Must Watch: How has the use of hydrogen rescued Australian companies?

Notably, green hydrogen is the only true zero-methane and zero-carbon fuel that doesn't require the burning of fossil fuel for its generation.

Given this backdrop, let’s skim through some hydrogen producers of Australia that can contribute towards reducing global carbon emissions.

Province Resources Ltd

Natural resources exploration and development company Province Resources Ltd (ASX:PRL) is focused on exploration of gold, copper, nickel, vanadium, cobalt and other mineral opportunities. PRL looks to benefit from the expanding use of these commodities in the growing green energy space.

Pure Hydrogen Corporation Limited

Pure Hydrogen Corporation Limited (ASX:PH2) is an Australian east coast-focused clean energy company with hydrogen, gas and mobility businesses. It has three gas projects and five hydrogen projects under development.

Recently, PH2 has launched a variety of hydrogen fuel cell power generation units, which can supply electricity without any emissions using Hydrogen fuel.

Hydrogen Renewable Energy Production

Source: © Audioundwerbung | Megapixl.com

Global Energy Ventures Ltd

Energy transition company, Global Energy Ventures Ltd (ASX:GEV) envisions to deliver compressed shipping solutions for transporting energy to regional markets. The firm launched the world’s first large-scale Compressed Hydrogen ship in 2020. This has positioned GEV as an early mover in the sphere of marine transport of Hydrogen.

Hexagon Energy Materials Limited

Australia-based Hexagon Energy Materials Limited (ASX:HXG) is focused on developing clean energy projects and exploring energy materials projects. HXG is committed to establishing a business that delivers decarbonised hydrogen into export and domestic markets.

QEM Limited

QEM Limited (ASX:QEM) is focused on the exploration and development of its flagship Julia Creek Project, which is a distinct world-class resource. The project has the potential to deliver innovative energy solutions by producing energy fuels and vanadium pentoxide. QEM aims to emerge as a leading producer of liquid fuels and a global supplier of high-quality vanadium pentoxide. 

Below is a snapshot reflecting the performance of these stocks.

ASX hydrogen stocks

Bottom Line

Amid rising environmental concerns, the whole world is in a race for adopting alternate and green sources of energy. Green hydrogen holds huge potential to become a significant contributor to society in meeting the world’s soaring clean energy demands.

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