Renewable Hydrogen and Ammonia feasibility report released

On February 21 2020, the Australian Renewable Energy Agency (ARENA) announced $995,000 in funding will be allocated to support a feasibility study for the production of renewable hydrogen and ammonia, by Yara Pilbara Fertilisers Pty Ltd (Yara).

With 40% of the world's food production dependant on the use of ammonia fertiliser, the feasibility study sought to explore the potential to make green hydrogen work at industrial scale at Yara’s existing ammonia production facility in the Pilbara, Western Australia.

The report co-authored by Yara and ENGIE has now been publicly released and confirmed technical feasibility, however the project retains some risks, of which the major one is the commercial feasibility, which clearly requires government grant support. A strong private-public partnership in this case is needed.

Commercial feasibility is achievable, subject to a few key assumptions, to be confirmed. These include:

1. Indications of a renewable ammonia market emerging continue, reinforcing Yara’s interest to develop the project and off-

take the renewable hydrogen.

2. The tender process for the Engineering, Procurement, Construction (EPC) contract leads to a competitive EPC solution.

3. Competitive capital (debt and equity) is attracted into this renewable hydrogen project.

These assumptions can be confirmed under a timeline compatible with that of key Government stakeholders.

Access the report.

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