H2U is developing a facility integrating more than 30 MW in water electrolysis and distributed ammonia production, near Port Lincoln in South Australia. The South Australian Government has provided $4.7 million through a grant and additional loan funding to deliver the $117.5 million project.
The plant will use 100 per cent wind and solar generation to produce up to 18,000 tonnes of green ammonia a year to supply the local agriculture and industry sectors. This is a globally significant demonstration project for the emerging hydrogen energy sector, being one of the first-ever commercial plants to produce carbon dioxide (CO2)-free green ammonia from intermittent renewable resources, and to demonstrate the adoption of green hydrogen across multiple value chains.
The plant will also feature two 16 MW open-cycle gas turbines operating 100 per cent on hydrogen at the site to provide electricity generation to the grid during periods of low wind or solar output. The project has capacity to provide a truly self-contained solution to firming renewable energy supply within the South Australia grid.
Considered one of the most prospective chemical carriers of hydrogen, green ammonia – a chemical compound of nitrogen and renewable hydrogen – is also a potential fuel for large-scale power stations, making it an attractive export opportunity.
Along with the Government of South Australia, H2U joined Japan’s Green Ammonia Consortium in July 2019. The consortium comprises of more than 70 companies and institutions, the Commonwealth Scientific and Industrial Research Organisation (CSIRO) and the Australian Trade and Investment Commission.
In August 2019, H2U executed an agreement with Australian iron ore mining and exploration company Iron Road Limited to collectively develop a commercialisation pathway for a multi-user, multi-commodity deep water port at the proposed 1,100 hectare site.