Fortescue Future Industries has received approval from the Queensland government to connect two proposed green hydrogen projects to the grid, allowing them to tap renewable energy supplies.
Two new green hydrogen developments on Gibson Island and Aldoga – near Gladstone – will be connected to the Queensland transmission network and supplied with renewable energy under a contract negotiated with the state government-owned Powerlink and Economic Development Queensland (EDQ).
Queensland Deputy Premier Steven Miles said the connection deal was critical to the development of renewable hydrogen facilities and the state government’s plans to position itself as a “superpower in hydrogen and renewables manufacturing.”
“FFI is proposing to construct a facility on Gibson Island capable of producing around 50,000 tonnes of renewable hydrogen per year. “Connection to the transmission network is critical in order to power this plant with green energy,” Miles explained.
“Queensland’s ever-growing array of renewable energy generators will provide the energy necessary to generate green hydrogen for export to countries such as Japan and South Korea.
“By partnering with Powerlink, FFI will benefit from a streamlined service across their Queensland connection developments, which are expected to be operational by 2023.”
Green hydrogen facilities are being constructed by Fortescue Future Industries, the iron ore behemoth’s green energy and hydrogen subsidiary. Fortescue Future Industries is tasked with realizing founder Andrew Forrest’s vision of turning the iron ore giant into green energy and materials.
Forrest stated in a statement regarding the arrangement that the additional connection projects would assist increase the quantity of renewable energy generated in Queensland.
“We look forward to collaborating with Powerlink to utilize the grid to deliver green energy to our projects, allowing us to move swiftly and facilitating the addition of more renewables and network decarbonisation,” Forrest added.
“FFI’s mission is to transform Queensland into a global green energy hub and to contribute to employment creation now and in the future.”
FFI has been collaborating with Incitec Pivot to convert their Gibson Island ammonia plant to run on green hydrogen. The facility is currently supplied with fossil gas, but due to the rising cost of the fuel, Incitec Pivot was considering shutting it down.
However, a feasibility assessment conducted by FFI determined that converting to renewable ammonia production would be technically feasible, potentially saving the plant.
Additionally, the Queensland government has backed a proposal for a 3,000MW green hydrogen production facility in Aldoga, as it looks to capitalize on an emerging export market for zero-emission hydrogen.
The connection agreement will entail the installation of a new 275kV switchyard and two 275kV connectors for the projected Gibson Island facility’s electrical supply.
An additional 275kV transmission line and substation will be constructed to serve Aldoga with additional power.
Mick de Brenni, Queensland’s minister for energy, renewables, and hydrogen, said the green hydrogen facilities would be able to take advantage of renewable electricity supplies being created as part of the state’s Renewable Energy Zones.
“By creating Renewable Energy Zones throughout the state, the Queensland Government will create a new market for thousands of megawatts of new renewable energy,” de Brenni said.
“Using Powerlink’s transmission network, this clean energy will then be delivered to locations such as Gibson Island and Gladstone, where it will be processed into green hydrogen and green ammonia.”
“Expanding Queensland’s green hydrogen industry creates new jobs and offers our trading partners worldwide decarbonisation options.”
