Fortescue, AGL to explore decarbonisation in the Hunter Valley
By on August 18, 2022
The Hunter Energy Hub
Located one hundred kilometers north-west of Newcastle, Australia, AGL’s coal-fired Liddell power station is due to be retired in 2023, and be replaced by the Hunter Energy Hub. Grid-scale batteries, new build renewable energy generation, a waste-to-energy plant, and a pilot-scale renewable hydrogen facility (to be developed in partnership with Fortescue Future Industries) will be integrated in and around the existing Liddell site. AGL also owns the nearby Bayswater coal power station, which is due to close by 2035.
This month, AGL has announced a new feasibility study into the industrial-scale production of renewable hydrogen & ammonia at the Hunter Energy Hub. With the understanding that FFI will act as the exclusive producer of renewable hydrogen at the site, AGL and a group of industrial partners (APA Group, INPEX, Jemena and Osaka Gas) will complete the study by the end of this year.
Early estimates suggest the site can support a hydrogen facility of up to 2GW 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 150MW and up to 2GW of hydrogen and preferred derivatives including ammonia for export and domestic use…
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.
AGL COO Markus Brokhof in his organisation’s official press release, 9 Aug 2022
Also in the region, Orica and Origin Energy are engaged in feasibility work for the Hunter Hydrogen Hub, which will produce renewable hydrogen to feed Orica’s existing ammonia production plant on Kooragang Island. The Island is also home to another ammonia production plant, operated by Incitec Pivot Limited. Together with Singapore-based Keppel Infrastructure and Temasek, IPL is currently exploring the feasibility of renewable ammonia exports from Newcastle to Singapore.
Hear more about AGL’s decarbonisation plans for the Hunter at next week’s Australia conference. AGL Senior Business Development Manager Bronwyn See joins our Domestic opportunities for renewable ammonia in Australia discussion panel at 2PM, Wednesday 25 August. She will explore the recent announcement with FFI, and explain how ammonia fits into AGL’s future plans in Australia. There’s still time to register: buy your tickets now!