TASPORTS and the H2U Group have signed a Memorandum of Understanding to investigate the feasibility of developing a large-scale green hydrogen and ammonia production and export facility within the Bell Bay port precinct in northern Tasmania.
The MOU comes as two of Bell Bay’s major industries and port users face uncertain futures.
The proposed new facility would be initially capable of producing up to 500,000 tonnes of green ammonia per year with the potential to scale-up, supporting the emerging hydrogen industry and advancing Tasmania’s renewable energy ambitions, the partners say.
Under the MoU, TasPorts and the H2U Group will assess the technical, economic, environmental and social feasibility of the project, including potential port infrastructure requirements, energy and water supply, export logistics, and local workforce opportunities.
TasPorts CEO Anthony Donald said the collaboration builds on TasPorts’ vision to position Bell Bay as one of Australia’s most sustainable bulk ports.
“This collaboration represents another significant step forward in the transition to low-emission energy solutions and will help accelerate the state’s contribution to Australia’s future fuel security,” he said.
“Our investigations will focus on assessing the implementation of a large-scale production facility from green hydrogen and derivative commodities - including green ammonia and associated bunkering infrastructure – for export and domestic use.
“If successful, this project could deliver lasting benefits for Tasmania by attracting new industries to Tasmania and the George Town region, strengthening local supply chains and creating skilled job opportunities during construction and operation,” Mr Donald said.
H2U group founder and CEO Dr Attilio Pigneri said Bell Bay was ideally positioned to support both Australia’s export ambitions and the global energy sector’s transition to cleaner fuels.
“Bell Bay is one of just a handful of locations in Australia that has a deepwater port, a diversified industrial complex, and access to renewable energy.”
“Building on our experience with similar developments in Gladstone and the Eyre Peninsula we are pleased to work with TasPorts to support our vision for an integrated green energy export hub at Bell Bay,” Dr Pigneri said.
The Bell Bay industrial precinct has been identified by both the Tasmanian and Australian governments as a key location for renewable energy development, with several proponents currently advancing projects focused on hydrogen and green manufacturing.
Completion of the study is expected towards the end of the financial year, and if successful will inform the preferred project design and advanced development activities, including front-end engineering and design, and development approvals.
Separately, one of port’s largest customers, the Liberty Bell Bay manganese smelter (formerly TEMCO until acquired by Saneev Gupta’s GFG Alliance from South 32 in early 2021) is touting a potential business-saving deal with
The LBB plant has been effectively idle since May. The company received a $20 million taxpayer loan in July to buy raw materials but has still not recommenced operations, breaching loan covenants including those with US investors,
Yesterday LBB announced it had signed a non-binding deal to hand over operations to Europe-based Steel International Trading Company for five years.
Meanwhile, the Tasmanian Government has agreed to roll over Rio Tinto’s Comalco Bell Bay aluminium smelter power supply agreement for 12 months while company completes a review of the operation and endeavours to negotiate a federal rescue package.