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Newcastle Herald
Newcastle Herald
National
Matthew Kelly

Asian market beckons for Hunter's green ammonia

Orica is closely observing the progress of both green hydrogen and green ammonia technologies, and exploring the opportunities they present.

The Hunter's emerging green hydrogen and ammonia industries are well positioned to be among the beneficiaries of the South Korean government's conversion of its power generation facilities to use green fuels.

The country is currently the third largest importer of ammonia in the world and its government has committed to green ammonia in the country's coal and gas-fired power plants in order to reduce emissions.

Green ammonia is produced with hydrogen that comes from water electrolysis as opposed to natural gas.

The South Korean government announced in September that it hoped to import a million tonnes per year of green ammonia from Australia by 2032 - an ambition shared by the Australian government.

While Gladstone has been identified as the major export port, the Hunter is well-placed to be a secondary supply point for the burgeoning Asian market.

A NSW Government-commissioned NSW P2X Industry Pre-Feasibility Study released earlier this year found that the Hunter's existing export supply chain through the Port of Newcastle would provide the ideal scaffold for future green ammonia exports.

Japan, which is developing plans to co-fire its power stations with ammonia, has already been identified potential major customer for Orica.

"The Hunter region provides the ideal backbone for Orica and other industry stakeholders to mobilise a new value creation business through the development of a 'green ammonia' export network," the pre-feasibility study said.

Orica is aiming to reach net zero emissions by 2050.

"We look forward to the opportunity to work with the government and other stakeholders in achieving our own and the state's decarbonisation goals," the company said in February.

"Orica is closely observing the progress of both green hydrogen and green ammonia technologies, and exploring the opportunities they present."

Incitec Pivot, Keppel Infrastructure and Singapore-based investment company Temasek signed a memorandum of understanding in late 2021 to to investigate the production and export of green ammonia from Australia to Singapore.

Incitec Pivot's existing Kooragang Island facility has been identified as one source with the other being a potential greenfield site in Gladstone.

The announcement indicates ammonia imported from Australia will be examined as a "direct feedstock" for energy generation for customers in Singapore and potentially the broader region, and/or act as a hydrogen carrier.

"Both our Kooragang Island site and potential greenfield site in Gladstone have the advantage of being nominated by the Australian Government as locations for hydrogen hub development," Incitec Pivot chief executive Jeanne Johns said.

"We are looking forward to combining our leading ammonia manufacturing and handling expertise here in Australia with Keppel's large-scale energy and infrastructure development capabilities, and Temasek's experience in sustainable solutions. This is another step in our commitment to support the development of an Australian low carbon energy industry of the future."

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