Australia Environment Minister Sussan Ley has rejected The Asian Renewable Energy Hub’s (AREH) planned 26-gigawatts of wind and solar generation project, which would produce hydrogen and ammonia, saying it would disrupt tidal movements and impact the habitat and lifecycle of native species, according to a Bloomberg report.
The federal government granted the A$36 billion project “Major Project Status” last October (GM Oct. 30, 2020). It was initially expected to go through a fast approval process toward its target of first exports by 2028, as it would bolster the nation’s ambitions to become a world-leading exporter of hydrogen.
However, new environmental approvals were required after the project developers expanded the original plan and decided to produce green hydrogen and ammonia for export. In addition to adding infrastructure for the production and export of green hydrogen and ammonia, the revised project plan also called for developing ammonia pipelines and a port facility to handle ammonia exports, as well as desalination and energy storage facilities.
The updated proposal increased the capacity of solar generation, and incorporated plans to build a new township between Broome and Port Hedland to house workers.
The project scope envisages producing about 1.8 million mt/y of hydrogen via electrolysis, and up to 10 million mt/y of green ammonia. Exports would be targeted at Japanese and South Korean utilities’ companies.
The consortium said it plans to continue with the project and is now working to amend its plans so the hub can go ahead. It said it is working to understand the minister’s concerns as it continues work on the detailed and engineering aspects of the project.
Critics of Ley’s decision said the government is not as concerned when it is a coal or petroleum project. “The same government approved the Carmichael coal mine” despite opposition from activists who feared local ecosystem destruction, said BloombergNEF Australia Analyst Will Edmonds, referring to a controversial new mine approved in 2019. The central government is also going ahead with nominations for future offshore petroleum exploration sites, he added.
AREH is being developed by a consortium of InterContinental Energy (ICE), CWP Energy Asia, Vestas, and Macquarie. A Final Investment Decision is expected in 2025, with construction beginning the year after.