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Fortescue Future Industries investigating green ammonia supply chain between Australia and Japan

Media Release 20 May 2021
River

Fortescue Future Industries Pty Ltd (FFI), IHI Engineering Australia Pty Ltd (IEA) and IHI Corporation (IHI) have signed a Memorandum of Understanding (MOU) for investigation into establishing green ammonia supply chains between Australia and Japan.

The parties will jointly assess the economic and technical feasibility of supplying green ammonia produced in Bell Bay, Tasmania and transported to Japan for blending into existing power generation. Work under this MOU is an important part of FFI’s feasibility and development program for the 250MW green hydrogen and ammonia Bell Bay project.

FFI Chief Executive Officer Julie Shuttleworth said, “The world’s transition to a clean energy future represents a major growth opportunity and this MOU with IHI and IEA will help position FFI, IHI and IEA at the forefront of the global green industry.

“Japan is a priority market for green ammonia exports,” Ms Shuttleworth said.

“By leveraging our value chain and market access as well as the skills and capability of our people to rapidly develop complex projects, FFI is well placed to meet the future demand of green ammonia.”

IHI President and CEO Hiroshi Ide said “Australia, with an abundance of renewable energy, is a very promising location for large scale ammonia production.”

“IHI will contribute to realizing a carbon-free society by merging our ammonia combustion and production technology together with green ammonia,” Mr. Ide said.

Background

Fortescue Metals Group Ltd (Fortescue) is a global leader in the resources industry recognised for our culture, innovation and industry-leading development of infrastructure and mining assets. We are now drawing on this experience as we rapidly evolve into a world class resources and renewable energy company through FFI.

FFI has a portfolio of projects underway associated with green ammonia and renewable hydrogen production, including:

  • A feasibility study into a 250MW green hydrogen plant in Tasmania, with a green ammonia production capacity of 250,000 tonnes per annum for domestic use and international exports
  • Establishing the Global LH2 Consortium with Kawasaki Heavy Industries and Iwatani Corporation to develop a business model for the supply of liquid hydrogen into Japan, for the establishment of large scale, liquid hydrogen production and supply capabilities
  • A partnership with the CSIRO for the development of new hydrogen technologies, including a world first membrane technology which provides the potential for large scale hydrogen extraction from ammonia
  • A hydrogen mobility project at Christmas Creek Mine comprising construction of a renewable hydrogen refuelling facility and deployment of a fleet of hydrogen fuel cell passenger coaches
  • A partnership with ATCO Australia to build and operate the first combined green hydrogen production and refuelling facility in Western Australia
  • A MOU with Hyundai Motor Co and CSIRO to advance renewable hydrogen technology for domestic transport
  • A MOU with Porto do Açu Operações S.A. (Port of Açu), to conduct development studies into the feasibility of installing a green hydrogen plant at Port of Açu. Brazil
  • FFI is studying and optimising a portfolio of hydropower, geothermal, wind and solar resources globally, with sites targeted in South America, North America, Europe, Central Asia, Africa and the Asia Pacific Region.

About IHI

IHI Corporation is a Japanese heavy-industry manufacturer working in four main business segments— Resource, Energy and Environment; Social Infrastructure and Offshore Facilities; Industrial Systems and General-purpose Machinery; and Aero Engine, Space and Defense.

IHI is proactively involved in both the technological development of the use of hydrogen and ammonia, as well as the development of its supply chain. By providing various solutions in order to realize carbon neutrality, we will contribute to realizing a carbon-free circular society.

About IEA

IHI Engineering Australia Pty Ltd was established as a subsidiary of IHI Corporation to support the construction of the BHP Steel Port Kembla No. 5 blast furnace. Since its establishment, IEA has diversified into several industries in Australia-Oceania including metal works, port handling facilities, coal fired boilers, gas turbines, oil & gas and food processing industries. Through countless successes in delivering major projects to customers here, IEA along with IHI have cemented their reputation as both a high-quality Original Equipment Manufacturer (OEM) provider and a reliable and solid EPC contractor committed to the Australia-Oceania market.