Bell Bay hydrogen hub: Origin, ABEL and Grange take big step

Three Australian energy companies have announced the results of their feasibility studies into their proposed Tasmanian facilities as a proposed green hydrogen hub inches closer.

Three Australian energy companies will begin preparing more detailed designs for their proposed green hydrogen facilities in Tasmania’s north after their studies concluded production at Bell Bay was “technically feasible”.

Origin Energy Future Fuels, which wants to build a 420,000 tonne per annum ammonia export facility and ABEL Energy, which has proposed a 100MW methanol export facility, both of which would be fuelled by green hydrogen, both released their feasibility studies on Wednesday.

Grange Resources, which is behind a planned 90–100MW green hydrogen facility to provide process heat for its Port Latta iron ore pellet plant, is yet to release its study but confirmed it would also be pressing ahead with its Front End Engineering Design (FEED).

Energy Minister Guy Barnett said Bell Bay was the perfect location for a green hydrogen hub as it possessed an abundance of “three key ingredients – water, electricity and infrastructure”.

Origin Energy Future Fuels concept design for its green ammonia facility at Bell Bay. Picture: Origin Energy Future Fuels

While Mr Barnett, Bell Bay Advanced Manufacturing Zone chief executive Susie Bower and representatives from the three energy companies all expressed their optimism, the contents of the two published studies do foreshadow headwinds still buffeting the proposals.

“Prior to taking a FEED decision in late-2022, more certainty is required around a pathway to electricity generation, transmission and firming,” the Origin study noted.

Origin’s study said, provided this certainty was provided, it is aiming to ship its first cargo of green ammonia in 2027.

The ABEL study, meanwhile, also acknowledged there were “challenges around land, power and water availability” but struck a more optimistic tone these issues could be addressed.

ABEL plans to make a final investment decision in mid-2023, with the plant’s commission by 2025.

Bell Bay Advanced Manufacturing Zone. Picture: ABEL Energy

Mr Barnett acknowledged there were still points of contention but this was to be expected when “starting a new industry” from the ground up.

He further stressed all three proposals were staged, meaning transmission and generation could be added as the demand grew.

Mr Barnett reiterated the state government’s commitment under the Tasmanian Renewable Hydrogen Action Plan to produce green hydrogen by the middle of the decade and export it by 2030.

The state government has provided seed funding of $50m under the Tasmanian Renewable Hydrogen Industry Development Fund, while the Bell Bay hub itself has received an additional $70m commitment from the federal government, which would be matched by the state government.

Liberal MHAs Simon Cook and Lara Alexander with Energy Minister Guy Barnett and Bell Bay Advanced Manufacturing Zone chief executive Susie Bower. Picture: Supplied

Fortescue Future Industries and Woodside have also proposed projects within the Bell Bay green hydrogen hub but these are at less developed stages, with the FFI proposal proving especially contentious, with the state government and Labor opposition sniping at each other over the purported delays.

Start-up Line Hydrogen has also proposed to manufacture green hydrogen at Bell Bay to fuel a fleet of hydrogen-powered heavy haulage vehicles for lease throughout Tasmania, but this project is not considered a part of the hub.