Orica and H2U Group announced the formation of a strategic collaboration to advance the first phase of the projected H2-HubTM Gladstone project in Queensland.
With the potential to generate over 550 direct jobs during construction, over 140 ongoing local operational jobs, and approximately 1,900 indirect jobs, and to attract a $4.7 billion investment during its phased construction, the project would support a steady transition to renewable energy in Central Queensland and position the region to capitalise on the growing global green ammonia industry, which is forecast to exceed $50 billion by 2031.
Both parties will explore the possibility of an exclusive domestic green ammonia offtake and supply agreement through the signing of a Memorandum of Understanding on a master plan study. The possible agreement would see H2U’s proposed Yarwun green ammonia production plant supply green ammonia directly to Orica’s Yarwun manufacturing factory.
Orica and H2U will also collaborate on the exploration of a green ammonia export terminal at the Port of Gladstone, leveraging Orica’s existing ammonia storage capacity at Fisherman’s Landing Wharf and associated connecting infrastructure in the Gladstone State Development Area to facilitate large-scale exports.
The H2-HubTM Gladstone, a multibillion-dollar industrial-scale green hydrogen and ammonia production complex, is projected to have an electrolysis capacity of up to 3 gigawatts and a green ammonia production capacity of up to 5,000 tonnes per day.
The proposed facility is expected to run entirely on renewable energy generated by newly constructed solar and wind resources in the Queensland region of the National Electricity Market. The planned facility might also assist to increasing the reliability of renewable energy supply in Central Queensland by integrating additional renewable generation assets.
The project, which is strategically positioned in Gladstone, would utilize existing industrial and port ecosystems to create and deliver green ammonia directly to domestic clients, as well as promote green ammonia export capabilities to key North Asian and European economies.
This partnership brings together Orica and H2U, two market leaders committed to leveraging existing and future portfolios and assets, accessible land, infrastructure, and storage distribution facilities, and teams with extensive operational and commercial capabilities to help the Gladstone region achieve a more sustainable future and strengthen Australia’s domestic manufacturing capability.
Orica President – Australia Pacific Germán Morales, said: “We’ve been operating in Yarwun for over 30 years, and are committed to ensuring our Yarwun facility and the Gladstone region remain competitive in a lower carbon economy, while creating more sustainable products for customers and opportunities across new industries.
“This partnership forms a critical milestone for the H2-Hub™ Gladstone project, and we look forward to working alongside H2U to define opportunities to progress the project and contribute to a more sustainable future for the region.”
H2U Founder and Chief Executive Officer Attilio Pigneri said: “We are delighted to welcome Orica as a strategic offtake and development partner in the H2-Hub™ Gladstone project. Securing participation from one of the leading players in the domestic ammonia industry is a huge vote of confidence in this game-changing project.
“We look forward to working with Orica, the Port of Gladstone, and the Queensland Government to establish Gladstone as a globally leading hub in the emerging green hydrogen and green ammonia export market, and to secure new long-term jobs and economic growth for Central Queensland.”
Acting Premier of Queensland Steven Miles said: “Commitments like this help to propel Queensland towards becoming a clean energy powerhouse and highlight the benefits of investing into Queensland’s regions, creating employment opportunities in the future.
“The Queensland Government has facilitied H2U’s Yarwun land purchase in the State Development Area, which has the eco-system to deliver a project of this scale.”
The master plan research will take roughly six months to complete, with front-end engineering and development approval processes beginning in late 2022.
By 30 June 2023, the financial investment decision for the Activation phase of development will be made. With the H2-HubTM Gladstone expected to commence operations in 2025 and the Expansion phase scheduled for 2027-2030.
