Gibson Island Green Hydrogen and Ammonia Project (Archived)

November 18th, 2024

Gibson Island Green Hydrogen and Ammonia Project

Fortescue is working with Incitec Pivot in undertaking a FEED study to progress the development of a large-scale renewables-based hydrogen and ammonia production facility to be located at Gibson Island in Brisbane, Queensland.

Main proponents:

Fortescue (responsible for hydrogen production and related activities)

 

 Main end-use classification:

Industrial process – ammonia production

 Status:

Archived

 Estimated cost:

AUD$38 million (FEED study)

 
Other involvement:

Incitec Pivot Ltd (key hydrogen offtake recipient)

 

 Production details:

Up to 70,000 tonnes per annum of hydrogen production under evaluation

 Location:

Queensland, Australia

 Announced funding:

AUD$13.7 million – Australian Renewable Energy Agency (ARENA)

 

Project description

The Incitec Pivot Gibson Island site in Brisbane became operational in 1969 and primarily manufactured nitrogen-based fertiliser products, including ammonia, urea, ammonium sulphate and carbon dioxide using natural gas as the principal site feedstock. Gibson Island despatched approximately 550,000 tonnes of fertilisers each year. Incitec Pivot ceased manufacturing from natural gas early in 2023.

Fortescue and Incitec Pivot undertook a feasibility study in 2021 to assess whether industrial scale manufacturing of renewables-based ammonia production at Gibson Island was technically and commercially feasible on an existing brownfield site. Preliminary results from the feasibility study indicated the project was found to be technically feasible.

Fortescue worked with Incitec Pivot in undertaking a Front-end Engineering and Design (FEED) study phase to progress the project. The FEED study would refine cost, schedule, permitting and commercial agreements, and inform a potential final investment decision. The FEED phase is anticipated to cost around AUD$38 million. In October 2022, ARENA announced an award of AUD$$13.66 million in funding to Fortescue Future Industries, in partnership with Incitec Pivot, to support the FEED study.

The proposed project involves the development of a renewables-based Hydrogen Production Facility (with Fortescue responsible for power transmission, water and hydrogen production) with the produced hydrogen fed into a refurbished/upgraded Incitec Pivot ammonia production facility (with the downstream facilities, including the production of ammonia, to be designed, constructed and managed by Incitec Pivot).

While the hydrogen production facility and the (upgraded) ammonia production facility would operate in tandem, they are to be developed on separate lots and would be subject to separate development and environmental applications.

The proposed project (and subject of the FEED study) involves the deployment of 550 megawatt (MW) of electrolysis capacity, capable of producing up to 70,000 tonnes per annum of renewables-based hydrogen as well as studying the conversion of the existing Gibson Island ammonia synthesis plant to utilise 100% renewables-based hydrogen for the production and offtake of 400,000 tonnes per annum of ammonia

The Project would be connected to Powerlink’s High Voltage (HV) transmission network and would secure power via a number of Power Purchase Agreements with wind and solar generation assets. Construction of a new 1.6 kilometre, 275kV overhead transmission line and substation at Gibson Island is required to provide power for the hydrogen facility. The construction, ownership and operation of the new line would rest with Queensland’s transmission network service provider, Powerlink.

Water for the project would be supplied by a mix of potable and purified recycled sources. The project is aiming to be fully supplied with recycled water.

This description is based on the following publicly available materials:

The above noted Q4 2023 information sheet indicates commercial operation is slated for late 2026.

In October 2024, ARENA published a report of the final findings of the FEED study for a 550 MW green hydrogen and ammonia production facility at Gibson Island in Brisbane.

Publicly available information as of mid-November 2024 is suggestive that the project, as described, is not progressing at time of review:

  • The Incitec Pivot Full Year 2024 Financial Results Presentation, released on 11 November 2024, indicates Gibson Island as a key real estate asset to divest, with the sale process expected to commence in Q1 2025
  •  The Fortescue webpage pipeline of ‘green projects’ identifies an initial focus on four green hydrogen projects across the world, and which does not include the Gibson Island project.

If the proponent is to indicate the project is progressing in different form or scale and advises it has initiated a work program on such, a review for inclusion in the Active listing would be undertaken.

 

Reviewed: November 2024

[Note: This description was corrected in December 2024 to account for Fortescue having sole responsibility for the hydrogen production and related activities of the project and is deemed as the main proponent, while Incitec Pivot, as a key prospective offtaker of the produced hydrogen, was responsible for the downstream (non-hydrogen related production and associated) activities and is deemed as being ‘involved’ in the project.]