Renewables developer Amp Energy has signed a strategic framework agreement with Australian mining firm Iron Road to develop a 5GW green hydrogen and ammonia project at the latter firm’s planned Cape Hardy port and Central Eyre Iron Project (CEIP) industrial hub in South Australia.

Amp, backed by private equity firm Carlyle and other institutional investors, has 20GW of electrolyser capacity under development in Australia, equivalent to 19mn t/yr of green ammonia production capacity.

Iron Road’s planned export facility at Cape Hardy for the CEIP is designed to be South Australia’s first Capesize-capable port and has already received an A$25mn ($16.6mn) grant commitment from the Australian government.

2028 – First production at Cape Hardy project

Amp will be leased 410 hectares—a third of Iron Road’s land on the Spencer Gulf—for the green hydrogen and ammonia facility. In addition to abundant space for new infrastructure to be constructed, Iron Road notes the area is “environmentally and socially amenable to seawater desalination and hypersaline brine discharge given the site location in a high energy zone of the Spencer Gulf”.

The framework agreement includes an upfront A$1.5mn exclusivity fee, with a further conditional payment of A$1.5mn on execution of transaction documents following negotiations and scope development by the end of the year. After this, Amp will receive a total of A$21mn from Iron Road staggered throughout development milestones to first production, with an additional royalty on future output still to be negotiated.

A feasibility study and pre-Feed is expected to be completed on the Cape Hardy project by Q3 2024, with Feed completed the following quarter and FID by Q4 2025. The project is scheduled for commissioning and first production by Q3 2028.

Amp also acknowledges Iron Road’s indigenous land-use agreement with the Barngarla people, registered with Australia’s National Native Title Tribunal.

“We are delighted to be working exclusively with Amp for the next nine months, and beyond, on a green energy production and export development opportunity of national significance,” says Iron Road CEO Larry Ingle. “This important milestone further validates Cape Hardy as South Australia’s pre-eminent hydrogen export hub of scale. Our competitive offer-to-bid process was carefully designed to screen the most capable and motivated developer looking to prioritise and advance the project quickly and judiciously.”

“After running an earlier market sounding and thorough expression of interest process, Iron Road was conscious of reducing planning and development complexity by avoiding a crowded playing field at Cape Hardy,” he adds. “We have selected Amp as a single lead developer who we expect will assemble additional consortium partners in collaboration with Iron Road. Amp has been granted appropriate security and tenure to complete early feasibility and master planning work prior to next key development and commercial arrangements being agreed.”

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Author: Polly Martin