Gibson Island Green Ammonia Project
Gibson Island Green Ammonia Project
The project proponents are undertaking a FEED study to progress the development of a large-scale renewables-based hydrogen production facility to decarbonise the existing Gibson Island ammonia plant, located in Brisbane, Queensland.
| Main proponents:
Fortescue Future Industries, Incitec Pivot Ltd
|
Main end-use classification:
Industrial process – ammonia production |
Status:
Under development – project has entered the FEED study phase |
Estimated cost:
AUD$38 million (FEED study)
|
| Other involvement:
|
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 has been operational since 1969 and primarily manufactures nitrogen-based fertiliser products, including ammonia, urea, ammonium sulphate and carbon dioxide using natural gas as the principal site feedstock. Gibson Island despatches approximately 550,000 tonnes of fertilisers each year; it is slated to cease manufacturing from natural gas early in 2023.
The project proponents 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.
During 2022, the proponents were working towards an agreement to progress the project to a Front End Engineering Design (FEED) study phase, including developing a framework agreement to govern the project through to a final investment decision (FID).
In October 2022, ARENA announced an award of AUD$$13.7 million in funding to Fortescue Future Industries, in partnership with Incitec Pivot, to support a FEED study for the deployment of 550 megawatt (MW) of electrolysis capacity, capable of producing up to 70,000 tonnes per annum of renewable 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 FEED study would refine cost, schedule, permitting and commercial agreements, and inform a potential FID. The FEED phase is anticipated to cost around AUD$38 million.
FID is targeted for 2023; subject to a positive FID, first production is anticipated for around 2025.
As of October 2022, applications for planning approval for the project are shortly to be submitted and the project is working closely with Powerlink for connection of the project to the Queensland electricity transmission network and with Urban Utilities on sustainable water supply to the project.
A domestic and international process is underway to assess the demand potential of the renewables-based ammonia that would be produced by the facility.
This description is based on publicly available information as of October 2022.