AUS
NZ
UK
CA
USA
IND
Summary
- Origin Energy Limited (ASX:ORG) announced its plan for conducting feasibility over building a green hydrogen plant in the Bell Bay region, Tasmania.
- The Company would take a $3.2 million feasibility study for constructing a 500-megawatt export-scale green hydrogen and ammonia plant.
- FMG also recently announced its ambitions to venture into the renewable space. The company plans to build a plant with 250,000 tonnes ammonia capacity a year.
- Both projects to receive support from the Tasmanian government as the state plans to build a renewable hydrogen and begin export commercialisation for the clean fuel by 2030.
Origin Energy Limited (ASX:ORG) has unveiled its plan to develop export-scale hydrogen and ammonia facilities in Bell Bay, Tasmania. The announcement comes hot on the heels of a similar initiative declared by iron ore miner Fortescue Metals Group (ASX:FMG).
Origin Energy notified the market that it would conduct a $3.2 million feasibility study for building a 500 megawatt export-scale green hydrogen and ammonia plant across the Bell Bay region.
The Company mentioned that hydrogen would be produced from sustainable water using renewable energy, and later it would be combined with nitrogen in the air to make green ammonia.
The planned 500-megawatt green hydrogen and ammonia plant would produce over 420,000 tonnes of carbon-neutral ammonia a year, which would be exported to the global market. However, some of the production would be supplied domestically to support the ambitions of decarbonisation of the Tasmanian government.
Likewise, FMG plans to build a plant with 250,000 tonnes of ammonia capacity a year.
The feasibility study by the Company would also be backed by the government through $1.6 million funding and is expected to be completed by the end of the next year.
Tasmania Decarbonisation Ambitions
The state plans to build a renewable hydrogen industry to export commercialisation for the clean fuel by 2030. Recently, the state government announced an investment of $50 million for the same as it seeks to benefit from the abundant availability of hydropower generation opportunity.
The action plan of the state includes a 1000 megawatts export-scale renewable hydrogen plant.
Tasmania has built its economy on world-class renewable energy over the last decade as the state generates a majority of its electricity from substantial hydro resources.
To Know More, Do Read: Tasmania Purposes to Increase 2022 Renewable Output by Twofold- Hydro a Supporting Pillar
What’s Next?
The first production from the ORG’s planned plant is targeted for the mid-2020s and FMG, which recently indicated its intention to venture into the renewable energy space is planning an investment decision in 2021.
To Know More, Do Read: Forrest goes green with Fortescue’s foray into renewable energy sector
Felicity Underhill, ORG General Manager of Future Fuels, expressed excitement over the support from the Tasmanian government while commenting that hydrogen produced from renewable energy holds an immense potential to back decarbonisation ambitions.
The Company has been exploring how it can fit hydrogen into the energy system across the continent.
Why Ammonia?
Ideally, ammonia is considered as a reliable and safer method for transporting hydrogen, which can be later converted into hydrogen by using fertilizer and many other industrial processes.
To Know More, Do Read: Hydrogen Gas- An Intriguing Oil-Demand Driven Investment Case
