AGL Energy has begun an expanded feasibility study with additional partners to explore the development of a green hydrogen and ammonia production facility at its Hunter Energy Hub.
Independent technical consultancy GHD Advisory is carrying out the feasibility study for AGL as the hub provider and Fortescue Future Industries as the exclusive producer of green hydrogen at the site.
The feasibility study, which is mapping key operational and commercial plans for the project as well as developing a production timeline, is also leveraging the input of additional key industry and consortium partners across multiple sectors which have signed MoUs related to the project.
These partners include APA Group, INPEX Corporation, Jemena, and Osaka Gas Australia.
AGL chief operating officer Markus Brokhof said the feasibility study, due for completion by the end of the year, was another big step forward in AGL’s vision for an industrial low carbon energy hub at the site of Liddell and Bayswater power stations.
Brokhof said: “As we create our Hunter Energy Hub, our aim is to develop strong partnerships that enable an efficient ecosystem and create a circular economy.
“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 two gigawatts in scale, but we will also test critical inputs including renewable energy costs, firming requirements, electrolyser capital costs, logistics, and utilisation.
“The feasibility scope will focus on assessing the accelerated implementation of a large-scale production facility from minimum 150 megawatts and up to two gigawatts 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.
“Liddell and Bayswater benefit from unique energy infrastructure, positioned with strong grid connectivity, established transport links, workshops, and proximity to water supply and industrial activity.
“The future is about bringing the best low-carbon technologies together to shape a cleaner energy future to ensure customers have sustainable, secure, and affordable electricity.”
Since announcing their MoU, AGL and FFI have been developing and finalising the scope of the feasibility study, with AGL signing additional partners to the MoU.
Following the feasibility study, AGL expects this project, along with the others in the Hunter Energy Hub, to drive the development of around 1,000 permanent jobs across energy production, advanced manufacturing, recycling, and the production of chemicals.
FFI director for East Australia and NZ Felicity Underhill said the scale of green hydrogen production potential in the Hunter region was world-leading and that FFI was keen to accelerate the delivery of that potential.
Over the past 20 years, AGL has invested $4.8 billion in renewable and firming generation and has added more than 2,350 megawatts of new generation capacity to the grid since 2003.
