Fortescue and Incitec Pivot Limited (IPL) have partnered to help decarbonise ammonia production with green hydrogen made from renewable energy sources like solar and wind.
Fortescue is a global green energy and resources company, recognised for our culture, innovation and industry-leading development of infrastructure, mining assets and green energy initiatives. IPL is an ASX100 company that has two core businesses – the production of fertilisers for the agricultural sector and the manufacturing of explosives for the resources sector. IPL operates an ammonia-production facility at Gibson Island.
Fortescue is joining forces with IPL to investigate green hydrogen and ammonia production at Gibson Island, an industrial area of Brisbane. The proposed project could see the construction of a new ~500MW hydrogen electrolysis facility to produce green hydrogen, as well as the retrofitting of IPL’s existing ammonia manufacturing facility to produce up to 400,000 tonnes of green ammonia a year from the green hydrogen produced onsite.
As part of IPL’s decarbonisation strategy and in line with Fortescue’s goals to help heavy industry decarbonise, the Brisbane ammonia manufacturing and port facility conversion would be a world first.
Fortescue and IPL have completed initial studies to investigate converting the Gibson Island facility to run on green hydrogen, instead of the current feedstock of natural gas. Green hydrogen is hydrogen produced using 100% renewable energy. FFI proposes to construct an on-site electrolysis plant adjacent to IPL’s existing plant to produce green hydrogen for conversion into green ammonia.
If constructed, this project will help safeguard manufacturing jobs in Queensland, and assist in creating a new domestic and export market for green, renewable ammonia. In the future, green hydrogen and green ammonia from the project could also provide a low-carbon fuel supply to the Port of Brisbane, Brisbane Airport and other heavy transport users.
On 7 October 2022, Fortescue and IPL announced their agreement to proceed with the Front End Engineering Design phase of work required and confirmed the execution of a Framework Agreement between the two companies.
The project is supported through funding from the Australian Renewable Energy Agency (ARENA) as part of ARENA’s Advancing Renewables Program, recognising that the project will provide valuable learnings around producing renewable hydrogen at a large scale and the infrastructure adaptations required to facilitate the export of renewable ammonia. The views expressed herein are not necessarily the views of the Australian Government, and the Australian Government does not accept responsibility for any information or advice contained herein.
The Front End Engineering Design is an essential phase in the development of the technical specifications and costing required to proceed to Final Investment Decision, targeted for 2023. Fortescue and IPL, together with ARENA, will work together during the Front End Engineering Design phase.
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We are dedicated to providing training, employment, and business development opportunities for local people in support of construction and operational activities. For more information view our partner IPL's communities page.
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Please see ICN Gateway at Gibson Island Project (icn.org.au) for procurement opportunities.