Amp Energy, a Canadian renewables developer, has announced a three-month extension to the agreement driving the 5GW Cape Hardy Green Hydrogen project in South Australia.
The Cape Hardy Green Hydrogen project, proposed for the Cape Hardy Port Precinct by South Australia-based miner Iron Road, envisions a colossal green hydrogen and ammonia production facility. The winning concept design by Amp Energy includes an electrolyser and associated green hydrogen facility capable of delivering over 5 million tonnes of green ammonia annually.
The project is structured in two stages, with the initial phase featuring 5GW of renewable-powered electrolyser capacity. Subsequently, the second stage aims to double this capacity to an impressive 10GW.
The extension comes at a time when the International Energy Agency (IEA) identifies global challenges hindering hydrogen project development. Despite having over 360GW of electrolyser projects in the development pipeline, only a fraction, 3% or 12 GW, have reached financial close or started construction. The IEA highlights uncertainties in Australia over the fate of stalled projects, emphasizing the need for sustained progress.
Amp Energy, backed by the Carlyle Group of investment funds, assures that the Cape Hardy project is progressing well. It has undergone scrutiny by two leading global engineering firms ahead of pre-Front-End Engineering Design (pre-FEED). The company is in advanced discussions with various stakeholders, including landowners, energy developers, and transmission network specialists, to secure a renewable energy supply for the electrolyser, ensuring low-cost ammonia for domestic and export off-take.
The economic analysis conducted by Amp indicates an unsubsidized levelized cost of hydrogen of approximately $US3/kg-H2, translating to a mid $US600/tonne levelized cost of green ammonia. This supports the project’s viability and aligns with the growing interest from global strategic partners.
South Australia’s Minister for Energy and Mining, Tom Koutsantonis, highlights the “strong progress” of the Cape Hardy Green Hydrogen project, emphasizing its contribution to the state’s emerging hydrogen industry. The project is not only expected to create thousands of jobs but also aligns with the government’s net-zero goals and strengthens the state’s economy.
