Tasmania chooses four companies for new green hydrogen studies

Two iron ore producers are among four companies looking to potentially develop renewable hydrogen projects on the Australian island of Tasmania, three of which will receive state government funding to conduct feasibility studies.

Fortescue Metals Group, the world's fourth-largest iron ore producer, and Grange Resources, a Tasmania-based iron ore pellet maker, submitted feasibility studies to the state government for green hydrogen projects.

Origin Energy and ABEL Energy round out the four companies given the green light by the Tasmanian government.

Grange Resources, Origin Energy and Abel Energy will receive a total of A$2.6 million ($1.9 million) under the first round of the Tasmanian Renewable Hydrogen Development Funding Program, the government said Nov. 17. It said it had received 23 submissions since the program was launched in May, comprising a "mix of proposals from feasibility studies and infrastructure projects."

Fortescue did not ask for any government assistance and has been approved to look into the possibility of building a 250 MW green hydrogen plant at the Bell Bay Industrial Precinct in northern Tasmania. It could build green ammonia production capacity of 250,000 mt/year, targeting domestic and international customers.

Fortescue, which is arguably the most active of the iron ore majors in the hydrogen space, said the board will decide whether to invest further in the project sometime in 2021.

Among other projects, the Perth-based company has a A$32 million hydrogen mobility project underway at Christmas Creek in Western Australia that will see renewable hydrogen refueling stations built and hydrogen fuel cell passenger coaches rolled out in mid-2021.

In August, it signed a memorandum of understanding with South Korea's Hyundai Motor Company and the Australian government's scientific and research unit to collaborate on renewable hydrogen technology.

Fortescue CEO Elizabeth Gaines said Nov. 17 the company was "assessing clean energy opportunities locally and internationally to capitalize on the important role that green hydrogen will play to ensure the world can meet the Paris 2050 targets."

She said the Tasmania project was potentially an "important step in demonstrating our intention to position Australia at the forefront of the establishment of a bulk export market for green hydrogen."

ABEL Energy's feasibility study will explore the possibility of a 100 MW electrolyzer plant to produce green hydrogen and green methanol, also at Bell Bay for domestic and export use.

Grange Resources will examine the potential to use hydrogen to replace natural gas for industrial heating within their pelletizing facility at Port Latta, also on the north coast of Tasmania. This could result in a 90-100 MW renewable hydrogen production facility if found to be technically and commercially feasible.

Origin Energy will carry out a study into potentially developing a 500 MW, 420,000 mt/year green hydrogen and ammonia plant at Bell Bay, with a view to potentially start exports in the mid-2020s.

The feasibility study, which is part-funded by a A$1.6 million grant from the Tasmania government, is expected to be completed by the end of next year, Origin Energy said.