AGL Energy is embarking on an expanded feasibility study with additional partners to explore green hydrogen and ammonia production at its Hunter Energy Hub in New South Wales.
Independent technical consultancy GHD Advisory is carrying out the feasibility study for AGL as the hub provider and Fortescue Future Industries (FFI) as the exclusive producer of green hydrogen at the site.
Early estimates suggest the site can support a hydrogen facility of up to 2GW in scale.
The feasibility study, which is mapping key operational and commercial plans for the project as well as developing a production timeline, is also leveraging the input of additional industry and consortium partners across multiple sectors which have signed MoUs related to the project.
The parties are Australian energy infrastructure business APA, Japanese exploration and production company INPEX, Jemena, an owner and operator of a diverse portfolio of energy infrastructure assets across Australia and Osaka Gas Australia.
AGL Chief Operating Officer Markus Brokhof said the feasibility study, due for completion by the end of the year, was “another big step forward in AGL’s vision for an industrial low carbon energy hub at the site of Liddell and Bayswater power stations”.
Brokhof said: “Early estimates suggest the site can support a hydrogen facility of up to 2GW in scale, but we will also test critical inputs including renewable energy costs, firming requirements, electrolyser capital costs, logistics and utilisation.”
“The feasibility scope will focus on assessing the accelerated implementation of a large-scale production facility from minimum 150MW and up to 2GW of hydrogen and preferred derivatives including ammonia for export and domestic use.”
He added that Liddell and Bayswater benefit from “unique energy infrastructure, positioned with strong grid connectivity, established transport links, workshops and proximity to water supply and industrial activity”.
The Port of Newcastle has been identified as a potential offloading location, raising possibilities for the hub to facilitate hydrogen exports to Japan and other countries in the future, given Newcastle’s relative proximity to key markets.
Since announcing the Memorandum of Understanding (MOU), AGL and FFI have been developing and finalising the scope of the feasibility study, with AGL signing additional partners to the MoU.