October 1 (Renewables Now) - The Australian government will allocate AUD 2.88 million (USD 1.93m/EUR 1.77m) in financing for two studies seeking to explore the potential of using green hydrogen from wind and solar power electrolysis in the production of ammonia.
The funding initiatives were announced by the Australian Renewable Energy Agency (ARENA) on Monday in line with its new investment priorities targeting to expand the hydrogen industry and lowering carbon dioxide (CO2) emissions.
A study by Dyno Nobel Moranbah Pty Ltd for the construction of what could become the world’s largest green ammonia plant powered by green hydrogen will get AUD 980,000. The proposal envisages the construction of an up to 210-MW solar park with a 160-MW hydrogen electrolyser to produce green hydrogen and ammonia at Dyno Nobel’s existing sites in Queensland, which currently rely on natural gas. The Australian firm produces over 360,000 tonnes of ammonium nitrate annually and supplies the mining industry.
The second feasibility project will use AUD 1.9 million in state funding, to be distributed to Queensland Nitrates Pty Ltd. The company, which is leading a consortium including France’s Neoen (EPA:NEOEN) and Aussie energy consultant Worley, aims to assess the possibility of using wind, solar and energy storage capacity owned by Neoen to produce, via electrolysis, hydrogen that will cover one-fifth of its ammonia production near Moura, Queensland.
This project will seek to produce 20,000 tonnes of ammonia per year from 3,600 tonnes of renewable hydrogen on a commercial scale, ARENA said. Queensland Nitrates also meets its ammonia requirements with natural gas.
According to ARENA’s CEO Darren Miller, green hydrogen for ammonia production is the first step to decarbonise the ammonia sector. “Hydrogen is a huge opportunity for Australia, both for domestic use and as an export opportunity [..],” he added.
(AUD 1.0 = USD 0.670/EUR 0.615)