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Japanese Conglomerate IHI Corporation Joins HyNQ Consortium

Arnes BiogradlijaBy Arnes Biogradlija15/09/20233 Mins Read
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Queensland’s renewable energy and green hydrogen hub, the HyNQ – North Queensland Clean Energy Project, has welcomed a significant player into its fold. Japanese firm IHI Corporation, renowned for its expertise in green ammonia technology aimed at decarbonizing industries, has entered the consortium, further fueling the project’s mission to revolutionize Australia’s energy landscape.

The HyNQ consortium, consisting of IHI Corporation, Idemitsu Australia, CS Energy, and Energy Estate, is dedicated to developing a groundbreaking renewable energy, green hydrogen, and ammonia production and export facility in North Queensland. This strategic partnership bolsters Queensland’s quest to establish itself as a global leader in green energy innovation.

The project has made remarkable strides since its inception just ten months ago in December 2022 when Energy Estate secured the backing of partners Idemitsu and DS Energy. Their goal was to advance the HyNQ initiative by funding a pre-front-end engineering design (pre-FEED) study to explore the feasibility of producing and exporting green ammonia from the Port of Abbot Point near Bowen. The consortium now proudly announces the successful completion of pre-FEED activities during Q3 2023 and is set to embark on the FEED study in Q1 2024, culminating in a final investment decision in 2025.

At the heart of the HyNQ initiative is a sustainable energy hub powered by solar and wind generation, with an ambitious target of supporting over 1 GW of hydrogen electrolyzer capacity. North Queensland is the designated offtake market for its liquid green hydrogen, while green ammonia is slated for export markets. Although solar, wind, and green hydrogen production are renowned for their minimal greenhouse gas emissions, green ammonia is not without its environmental considerations, primarily due to its extensive use in fertilizers within the agricultural industry.

The HyNQ consortium’s latest member, IHI Corporation, specializes in the pivotal role green ammonia plays in industry activities, both in Japan and globally. Kensuke Yamamoto, Associated Director of IHI Corporation, stated, “IHI Corporation is a global technology leader in the use of green ammonia to decarbonize industry – in Japan and other markets around the world. We see HyNQ as an opportunity to secure long-term supplies of green ammonia for the Japanese market and build upon the foundations of the strong and enduring partnership between Queensland and Japan.”

This pioneering project enjoys the staunch support of the Queensland government, fitting snugly within the recently unveiled Collinsville Renewable Energy Zone. Furthermore, the government is keen on facilitating the rapid development of Abbot Point as a prominent green export hub, benefitting from its existing deep-water port capabilities. With a $8.5 million (USD 5.47 million) investment in the Abbot Point Activation Initiative under the Queensland Energy and Jobs Plan hydrogen hubs program, the government is driving master planning, development, infrastructure agreements, and the essential preparations for water and power supplies to produce hydrogen at scale.

The HyNQ consortium underscores its commitment to building common user infrastructure at Abbot Point, positioning the large-scale export of green ammonia as a linchpin in harnessing North Queensland’s exceptional renewable energy and critical mineral prospects on a global scale.

IHI Corporation’s entry into the consortium further cements its presence in the Australian hydrogen landscape, aligning with its collaboration with Woodside Energy on green ammonia projects in Tasmania and New Zealand. Energy Estate, on the other hand, continues to shape the future of green hydrogen with projects like the Hunter Hydrogen Network (H2N) in New South Wales and Hydrogen City in Texas, USA.

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