Extension granted for massive green hydrogen and ammonia project

Iron ore project developer Iron Road has extended its Strategic Framework Agreement with Amp Energy which aims to develop a massive green hydrogen and ammonia project alongside its operations at Cape Hardy in South Australia.

The two companies have extended their agreement and associated exclusivity period by three months to 12 April 2024, to provide adequate time to finalise and execute transaction documents for the proposed Cape Hardy green hydrogen and ammonia project.

Iron Road is the owner of the Central Eyre Iron Project (CEIP), a long-life iron ore mining, beneficiation and infrastructure development opportunity and export port at Cape Hardy on the Eyre Peninsula (see map below).

In return for Iron Road granting the extension, Amp has agreed to waive its right to receive a refund of a $500,000 exclusivity fee paid by Amp which plans up to 5 GW of electrolyser capacity over the next decade in the precinct, delivering over five million tonnes per annum of green ammonia.

The project’s second Stage will see doubling of this capacity to 10 GW.

The ammonia will be exported through a bulk port at Cape Hardy (pictured) and more than 4,800 Direct and Indirect Construction jobs and 250 Direct and Indirect Operations Jobs are expected to be created.

The Australian Government has already shown support through its earlier announcement of $25 million for further Port infrastructure development.

Amp said in a statement that discussions with Iron Road envisioned an associated industrial manufacturing precinct centred on the green hydrogen and minerals value chain.

Amp President and founder Paul Ezekiel said: “We have seen a flight to quality from global strategic partners who are looking to partner with projects of scale.

“We believe the Cape Hardy Green Hydrogen project is strategically well positioned as one of Australia’s flagship hydrogen projects.”

Headquartered in Canada, Amp is a vertically integrated renewables and energy transition developer and supplier, funded by institutional investors, including global private equity firm The Carlyle Group.

Amp’s hydrogen development business is evaluating four sites globally adjacent to renewable energy projects with a contingent focus on Australia and South Australia in particular.

South Australian Minister for Energy and Mining Tom Koutsantonis said: “The strong progress achieved by the Cape Hardy Green Hydrogen project reflects the momentum of South Australia’s emerging hydrogen industry.

“In addition to creating thousands of jobs for South Australians, projects like this facility at Cape Hardy contribute to our government’s net zero goals and strengthen the state’s economy.

“Renewable hydrogen has an important role to play as the world transitions to a decarbonised future and South Australia is ideally positioned to capitalise on this opportunity.”

For downstream delivery of the Cape Hardy green hydrogen and ammonia project, Amp has recruited Thyl Kint as Project Director, who brings 40 years of experience with BHP Petroleum, BP, BW Offshore, Kerr McGee, Santos, Shell and the International Finance Corporation.