ScaleH2

September 17th, 2025

ScaleH2

ATCO has undertaken a feasibility study of a proposed renewables-based, large-scale hydrogen and ammonia production facilities in Port Kembla, New South Wales.

Main proponents:

ATCO

 Main end-use classification:

Industrial process – ammonia production

 Status:

Under development –project has completed feasibility study

 Estimated cost:

Capital cost estimate based on initial design of 1 GW electrolysis capacity is a basis for further study. See ATCO_ScaleH2-Feasibility-Study_Final-Feasibility-Summary-Report.pdf for cost estimates based on the plant configuration reviewed in the Public Feasibility Study Report.
Other involvement:

 

 Production details:

Initial design of 1 GW electrolyser capacity, 800,000 tonnes per annum ammonia production. See ATCO_ScaleH2-Feasibility-Study_Final-Feasibility-Summary-Report.pdf for preliminary engineering results based on the plant configuration reviewed in the Public Feasibility Study Report.

 Location:

New South Wales, Australia

 Announced funding:

German-Australian HyGATE Initiative: ARENA-administered Australian funding of AUD$0.8 million and German funding of €7.4 million awarded to respectively ATCO (Australian funding lead applicant) and Fraunhofer IST (German funding lead applicant)

Project description

ATCO has received an Australian funding award of AUD$800,000 to undertake a feasibility study, ‘ScaleH2’, that would include a (renewables-based) ~1 GW hydrogen production facility and a ~800,000 tonnes per annum ammonia facility located in the Illawarra region of New South Wales.

ATCO’s Australian Project Partners include the University of New South Wales and the University of Technology Sydney, who will undertake research as part of this funding on technology development targeting electrolyser capital cost reductions and improved efficiencies.

The German research institute, Fraunhofer IST, as lead applicant for a consortium of German partners, were awarded €7.4 million to undertake a range of technical studies in support of project development in collaboration with the Australian Project Partners, including electrolyser efficiency, coating and plate technologies, and underground storage solutions.

The aim of ScaleH2 is to develop and execute a strategy for a hydrogen export value chain from New South Wales to Germany.

The ATCO SCALEH2 FEASIBILITY STUDY – Public Feasibility Study Report, Part A – Technical Feasibility Study Report, includes a review of the following plant configuration design parameters (with modelled electrolyser capacity set at its largest level allowing the facility the flexibility to operate under each of the three power operational scenarios noted in the report):

  • Modelled alkaline electrolyser plant capacity of up to 1,380 MW capacity, capable of delivering approximately 579 tonnes per day of renewables-based hydrogen.
  • A 2 x 50% ammonia train configuration to allow flexibility in production turndown and staggering of plant maintenance, capable of producing up to 826,000 tonnes of ammonia per annum.
  • Hydrogen buffer storage of 124 tonnes
  • A 24 MWh battery energy storage system (BESS)
  • A Class IV cost estimate indicating a capital investment of approximately AUD$5.95 billion for the above summarised plant configuration
  • Electricity supply to the production facility would be provided through a grid connection to the network operator’s existing 330 kV network.

The Public Feasibility Study Report notes that further detailed design should be completed on a smaller scale facility that reflects the initial size design based on commercial feasibility assessment – such initial design including, amongst other things, 1 GW of alkaline hydrogen electrolysis capacity and hydrogen storage capacity of 70 tonnes (see the public report for other aspects of the initial design).

Part B – Commercial Feasibility Study Report covers commercial aspects, with emphasis on German and European offtake support schemes.

Key dates:

January 2023: ARENA announces funding recipients from the Australia-Germany HyGATE initiative.

November 2023: ATCO commences feasibility study.

June 2024 – Market Study report available at https://arena.gov.au/knowledge-bank/atco-scale-h2-feasibility-study-market-study-report/

July 2025 – Public Feasibility Study Report available at https://arena.gov.au/knowledge-bank/atco-scale-h2-feasibility-study-final-report/

 

Reviewed (reviewed by the project proponent): September 2025