Green energy company Fortescue Future Industries (FFI) has signed a memorandum of understanding with utility AGL Energy to undertake a feasibility study to develop a green hydrogen facility in Australia’s Hunter Valley.

The study will evaluate the possibility of repurposing two coal-fired power stations to generate the fuel.

The plants would be replaced with electrolysers capable of generating 30,000t/yr of green hydrogen—and eventually more as they are scaled up to gigawatt-size.

“Repurposing existing fossil fuel infrastructure with forward-looking companies like AGL to create green hydrogen to help power the world is the solution we have been looking for,” says FFI chair Andrew Forrest.

The plan would also see the installation of 250MW of dedicated renewable assets, supported by new pumped hydro and battery storage. The partners will assess whether green hydrogen can be used to fuel co-located industries and form a clean energy hub.

“Our aim for the hub is to develop strong partnerships that enable an efficient ecosystem and create a circular economy,” says AGL COO Markus Brokhof.

Attracting business

There is some industrial presence in the Hunter Valley region, but the firms hope the hub will attract more investment.

“Our aim for the hub is to develop strong partnerships that enable an efficient ecosystem and circular economy” Brokhof, AGL

The year-long feasibility study will also test critical inputs including renewable energy costs, firming requirements, electrolyser capital costs, logistics and utilisation.

The firms believe the hub could drive the development of around 1,000 permanent jobs across energy and chemical production, advanced manufacturing, and recycling.

“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,” adds Brokhof.

The Liddell and Bayswater power stations account for over 40pc of New South Wales’ CO₂ emissions, according to Australia’s 2019 National Greenhouse and Energy Reporting data.

FFI—a spinoff of miner Fortescue Metals Group—is one of the major green hydrogen project developers operating on a global scale. The firm is working on projects in Argentina, Canada, Australia and the UK among other countries.

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Author: Tom Young