Grange Resources Renewable Hydrogen Study (Archived)
Grange Resources (Tasmania) Pty Ltd
|Main end-use classification:
Industrial process heating
See text below
See Milestones section below
Grange Resources owns and operates an integrated iron ore mining and pellet production business, located in the north-west region of Tasmania.
The pellet plant and port facility are located 50 kilometres north-west of Burnie, a port city on the north-west coast of Tasmania.
The project proponent has completed a pre-feasibility study to investigate the potential to use renewables-based hydrogen to replace natural gas for industrial process heat purposes at its Port Latta pelletising plant.
The study reviewed several hydrogen supply options/scenarios, including onsite build and operate to 100% purchase from a third party and combinations of varying magnitudes in between. Estimated power consumption for the onsite options (including balance of plant) ranged from 75-105 megawatts (MW). Capital cost estimates for the onsite options (October 2021 base) ranged from AUD$330 to AUD$420 million. The study noted that the Alkaline technology was considered most appropriate for the hydrogen-related decarbonisation process under review.
At a concept level, the study noted, from a technical perspective, that the conversion from natural gas to hydrogen in the furnace was entirely possible though also noting that, in terms of commerciality, the project faces significant challenges in the absence of supportive measures. The study noted that a logical implementation plan would include a trial of a single furnace using trucked hydrogen to assess product quality before committing to full-scale hydrogen provision.
The study included several recommended actions to progress decision making.
The project has not progressed with further studies to progress project development in the near future. In its May 2023 AGM Investor Presentation, the proponent has identified a decarbonisation pathway timeline for its operations, including pellet plant alternative energy (i.e., natural gas replacement) in the period 2030-2034, as well being a core Partner in the Heavy Industry Low-Carbon Transition Cooperative Research Centre (HILT CRC) which is undertaken research to support decarbonisation of heavy industry.
November 2020: The feasibility study for this project is one of three feasibility studies to which funds were allocated in November 2020 by the Tasmanian Government under its AUD$20 million Tasmanian Renewable Hydrogen Fund (part of the wider AUD$50 million Tasmanian Renewable Hydrogen Industry Development Funding Program).
Reviewed: November 2023