In the Northern Territory, a $US10.75 billion ($15 billion) green hydrogen project will utilize unique technology to overcome the challenge of insufficient water that has plagued past renewables-based projects, with exports expected as early as 2027.
The Desert Bloom Hydrogen project, led by technology company Aqua Aerem – literally “water from air” – would employ “breakthrough atmospheric water capture technology” to manufacture commercial amounts of renewable hydrogen, fueled by the Barkly region’s abundant solar resources.
The business is moving on with development after nine months of experiments at a prototype project in Tennant Creek, with starting hydrogen production expected in 2023 and sold in the local market.
The technique works by absorbing water from the atmosphere in dry locations, similar to how atmospheric water generators create drinking water in workplaces, but with the addition of an absorbent.
Aqua Aerem co-founder and CEO Gerard Reiter said, “That allows us to really turbo-charge the process and be able to gather fairly considerable amounts of water.”
Green hydrogen projects convert water into hydrogen and oxygen using renewable energy.
Mr. Reiter anticipates the project to be the first in Australia to produce green hydrogen for less than $US2 per kilogram, which is still a long way from the federal government’s stretch goal of green hydrogen supply for less than $2/kg.
Sanguine Impact Investment is providing the initial funding for the initiative, which has been designated as a “major project” by the NT government.
However, “one of Japan’s major gas purchasers and distributors” has agreed to invest in it, according to Aqua Aerem, who did not divulge the company’s name. Territory Generation, a utility in the Northern Territory, has agreed to acquire hydrogen from the inaugural project.
Aqua Aerem is primarily owned by Sanguine Impact Investment, an investment group focused on infrastructure in emerging markets and developing economies. It also includes the project’s initial proponents, infrastructure consultancy Axcentium, and intellectual property specialist Ahurei.
The project is one of a slew of ambitious green hydrogen export projects in the works, as energy suppliers, technology companies, infrastructure investors, and others seek to tap Australia’s vast renewable energy resources to produce a clean fuel that will be critical in decarbonizing heavy transportation, industry, and power generation.
Trafigura, Fortescue Metals, AGL Energy, Macquarie Group, Jemena, and Woodside Petroleum have all recently announced new projects, while BP, Origin Energy, and others are actively working on new projects.
Separately, start-up Port Anthony Renewables said on Monday that it had completed a “heavily oversubscribed” $3 million pre-IPO capital offering as it prepares to build what it claims would be Australia’s largest hydrogen hub. It plans to list on the ASX in the second quarter of 2022.
Meanwhile, Aurizon and Anglo American agreed to research the use of hydrogen-powered trains for bulk freight, indicating the advent of hydrogen in the transportation industry. If the project is successful, the two might move on to construct a prototype hydrogen-fueled heavy-haul locomotive that could be utilized on coal rail routes between Gladstone and Townsville.
Building demand, attaining low-cost production at scale, and lowering delivery costs are among the problems confronting Australia’s hydrogen industry, according to the federal government’s State of Hydrogen report, which was issued last Friday.
Mr. Reiter said that the Desert Bloom project differed from many others in that the first, $600 million phase is expected to be completed in early 2022. Initial output is estimated to be around 2500 kg/day, growing to around 35,000 kg/day before transitioning to the second, export-oriented stage, which may produce up to 410,000 tonnes per year.
According to him, the energy would most likely be exported overseas as compressed hydrogen and liquid ammonia, or as liquid methylcyclohexane, which can be carried using standard petroleum tankers, as preferred by Japanese purchasers.
The Desert Bloom project, according to the Northern Territory government, may provide more than 1000 full-time construction employment and more than 120 full-time jobs once it is operating.
The NT government will collaborate with the venture to find appropriate property in central Australia for solar energy harvesting, according to the statement.
“The Territory will play a leading role in the emerging renewable hydrogen market,” NT Chief Minister Michael Gunner said. “With one of the best solar resources in the world – and the development of projects like Desert Bloom – the Territory will play a leading role in the emerging renewable hydrogen market.”
