Australia’s Orica, H2U form green ammonia venture

: Fertilizers, Hydrogen
22/04/13

Australian chemicals and explosives firm Orica and Australian hydrogen developer The Hydrogen Utility (H2U) have agreed on an initial deal to explore opportunities for an exclusive domestic green ammonia offtake and supply agreement, as well as looking into the potential for a green ammonia export terminal at Gladstone, Queensland.

The potential agreement will see green ammonia supplied directly to Orica's Yarwun manufacturing plant in Gladstone from H2U's proposed Yarwun green ammonia production plant, Queensland minister for state development Steven Miles said.

Orica's Yarwun plant produces nitric acid, ammonium nitrate and sodium cyanide. Nitric acid is used to make ammonium nitrate and in turn is made using ammonia. Sodium cyanide is also made using ammonia.

H2U plans to develop the H2-Hub at Gladstone to produce green hydrogen and green ammonia that will source electricity from around 10,000MW of renewable energy generation capacity to be established in the Queensland region of the National Electricity Market covering east Australia to support the project, H2U said in its planning documents.

The H2-Hub will require around A$4.7bn ($3.5bn) of investment with the plant to have a planned capacity of up to 3,000MW of electrolysis and up to 5,000 t/d of green ammonia production.

A final investment decision for the first phase of development is scheduled by 30 June 2023. The H2-Hub Gladstone plant is scheduled for operational activity to begin in 2025, with the latter expansion phase to take place between 2027 and 2030.

Orica is also involved in another hydrogen project, which is a study to develop a hydrogen hub in the Hunter valley region of New South Wales with Australian upstream and utility firm Origin Energy.

H2U is also developing a hydrogen project, the Eyre Peninsula Gateway in South Australia's Port Bonython region. Japanese engineering firm Mitsubishi Heavy Industries said in November 2020 that it had agreed to invest in H2U.

By Kevin Morrison

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