Incitec Pivot Ltd. (IPL), Southbank, Victoria, said preliminary studies have found that the proposed industrial-scale green ammonia project at the company’s Gibson Island facility in Brisbane is technically feasible.
Green energy company Fortescue Future Industries (FFI) is partnering IPL in the project, which was announced in October (GM Oct. 15, p. 1).
IPL said based on preliminary studies conducted by each party, FFI has found the project is technically feasible and has issued IPL a notice to proceed to the next phase.
The parties will now negotiate an agreement to progress the project to a Front End Engineering Design (FEED) study, which will verify the commercial feasibility of the project, as a step towards a potential Final Investment Decision, IPL said.
The FEED study will refine cost, schedule, permitting, and commercial agreement, and is expected to be completed by the end of 2022.
The proposed water electrolysis facility would produce up to 50,000 mt/y of renewable hydrogen and be a complete replacement of Gibson Island’s current natural gas feedstock. The renewable hydrogen would be converted into more than 300,000 mt/y of green ammonia for Australia and export markets.
If the project proceeds, it is currently proposed that FFI would construct the on-site water electrolysis plant and develop and operate the hydrogen manufacturing facility, while IPL would operate the ammonia production plant.
IPL last month announced it would end production at Gibson Island at the end of December 2022 after the company was unable to secure an affordable long-term gas supply (GM Nov. 12, p. 1).
The company’s Gibson Island site is currently Australia’s sole urea producer. The site has capacity to produce 340,000 mt/y of granular urea, according to Green Markets data. It also produces ammonia and ammonium sulfate, with nameplate capacity of 300,000 mt/y and 200,000 mt/y, respectively, according to IPL’s website.
IPL Managing Director and CEO Jeanne Johns said the green hydrogen-ammonia project provided the potential to transition Gibson Island to a renewable future.