AGL and Fortescue step up Hunter green hydrogen feasibility study

AGL Energy and Fortescue Future Industries have expanded their green hydrogen feasibility study to explore the development of a green hydrogen and ammonia production facility at AGL’s Hunter Energy Hub.

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, located at the site of the former Liddell power station.

The feasibility study is mapping key operational and commercial plans for the project as well as developing a production timeline.

It has also attracted companies to sign Memorandums of Understanding related to the project:

• APA Group – a leading Australian energy infrastructure business
• INPEX CORPORATION – a global energy exploration and production company
• Jemena – a leading owner and operator of a diverse portfolio of energy infrastructure assets across Australia
• And Osaka Gas Australia – a wholly-owned subsidiary of Osaka Gas Co Ltd – global natural gas and power company.

AGL COO Markus Brokhof said the feasibility study was due for completion by the end of the year, and was a big step forward in AGL’s vision for an industrial low carbon energy hub in NSW’s Hunter Valley.

Brokhof said: “By working hand in hand with Fortescue Future Industries, we will be supporting Australia’s emerging green hydrogen industry and bringing our expertise in large-scale renewable generation to the fold.

“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.”

Brokhof said the feasibility scope will focus on 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.

“Our Hunter Energy Hub will be the first of its kind in Australia and will be an example of how an energy hub can combine grid-scale batteries, solar thermal storage, wind and pumped hydro. It will be an industry-leading model for our other large generation sites and others across the country.”

FFI Director for East Australia and NZ Felicity Underhill, said the scale of green hydrogen production potential in the Hunter region is world leading and the company was keen to accelerate the delivery of this potential.

Picture: AGL’s Hunter Energy Hub

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