Australia's Fortescue to make green hydrogen equipment in Queensland

By Kitco News / October 10, 2021 / www.kitco.com / Article Link

MELBOURNE, Oct 11 (Reuters) - Fortescue Metals Group Ltd's green energy unit said on Monday it plans to build theworld's biggest electrolyser factory in Queensland, looking tojump start the green hydrogen industry in Australia.Andrew Forrest, Fortescue's chairman and Australia's richestman, has thrown his weight behind the use of clean hydrogen,made from renewable electricity and water, to drive downgreenhouse gas emissions. The new facility will make specialist equipment likeelectrolysers, used in hydrogen production, as well as windturbines, solar photovoltaic cells and long-range electriccabling for Fortescue Future Industries (FFI) and its customers.FFI said the first stage of the planned hub will beelectrolyser factory in Gladstone, 480 km (300 miles) north ofBrisbane, producing electrolysers with a capacity of 2 gigawattsa year, which it said was more than double current productionglobally.The world's biggest electrolyser plant currently is run byITM Power in Sheffield, England, with annual capacity of more 1GW.FFI said construction is planned to start in February 2022,with the first electrolysers, which convert water into hydrogenand oxygen, due in early 2023. Its initial investment would be$83 million, with investment of up to $650 million, subject todemand.FFI said separately it is investigating the potential toconvert chemicals maker Incitec Pivot's Brisbaneammonia plant to run on green hydrogen from natural gas throughan on-site electrolysis plant that will produce up to 50,000tonnes of hydrogen a year.Overall, FFI said it plans to produce 15 million tonnes ofgreen hydrogen annually by 2030, rising to 50 million tonnes inthe following decade for domestic and export markets.Broker RBC, however, said the manufacturing hub initiativecould struggle to make an adequate return, given cheaper ammoniaproduction from fossil fuels and a lack of incentives."A high carbon price, tiered pricing and governmentincentives are required to ensure green ammonia production willbe economic over the medium term," it said. (Reporting by Melanie Burton; Editing by Richard Pullin) +613 9286 1421; Reuters Messaging:melanie.burton.thomsonreuters.com@reuters.net)) Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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