Origin Green Hydrogen and Ammonia Plant

May 6th, 2022

A feasibility study has been undertaken to assess the potential for developing a large-scale renewables-based hydrogen and ammonia plant to be located at Bell Bay in Tasmania.

Main proponents:

Origin Energy

Main end-use classification:

Industrial process – ammonia production

Status:

Under development

Estimated cost:

(Feasibility study)
AUD$3.2 million

(Front end engineering design studies)
AUD$6 million

Other involvement:

 

Production details:

Under evaluation

Location:

Tasmania, Australia

Announced funding:

(Feasibility study)
AUD$1.6 million Tasmanian Renewable Hydrogen Fund –

(Front end engineering design studies)
Up to AUD$3 million – Australian Government Clean Hydrogen Industrial Hubs Program – Hub Development and Design funding stream

Project description:

The project proponent has investigated the feasibility of constructing a large-scale renewables-based hydrogen and ammonia plant with a planned production rate of 420,000 tonnes of ammonia per annum. The plant would be located at the Bell Bay Advanced Manufacturing Zone in Tasmania.

The feasibility study assessed a plant designed to enable flexible operation, with an estimated electrical load of more than 500 megawatts (MW). A knowledge sharing report has been issued to the Tasmanian Government with the determination that the project is technically feasible. Subject to three identified pre-conditions being met by the proponent and the Tasmanian Government, the project proponent is targeting Front End Engineering Design (FEED) studies to commence in fiscal year 2023 (with the cost for such studies estimated at approximately AUD$6 million).

While the main focus of the project would be the production of renewables-based ammonia for export, some of the produced hydrogen and ammonia would be made available for domestic use.

If the project were to proceed, production operations is targeted for the mid-2020s.

In August 2021, Mitsui O.S.K. Lines, Ltd. (MOL) announced that it had signed a Memorandum of Understanding (MoU) with Origin Energy for a joint study to build a supply chain of renewable energy-derived ammonia. The release noted Origin is pursuing a number of renewable-based hydrogen projects, including the green hydrogen and ammonia export-based project in Bell Bay, Tasmania. The release noted MOL and Origin would complete a feasibility study on marine transportation of ammonia, demand in Japan and Asia and developing a supply chain by December 2021.

Milestones:

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).

April 2022: Under the 2022 federal election caretaker arrangements, it was announced that Origin Energy was recipient of up to AUD$3 million to support potential FEED studies through the Clean Hydrogen Industrial Hubs Program (Hub Development and Design funding stream).

 

Last reviewed: May 2022