Green hydrogen production plant in Bell Bay to increase Tassie’s economic output by close to $18bn

Billionaire Andrew ‘Twiggy’ Forrest’s green hydrogen production plant proposed for Bell Bay would increase Tasmania’s economic output by billions, according to a new analysis.

Billionaire mining magnate Andrew ‘Twiggy’ Forrest’s green hydrogen and ammonia production plant proposed for Bell Bay would increase Tasmania’s economic output by close to $18 billion and create more than 3000 full-time jobs in the long-term, according to a new analysis.

Data from Deloitte Access Economics, obtained exclusively by the Mercury, shows that the proposed $4.3 billion 250 MW plant would generate 3317 full-time equivalent jobs, and 4447 at the peak of construction in 2029.

3/4/2020 Andrew Forrest talks about Cove project by Minderoo. Pic Colin Murty The Australian

This equates to more than four times the number of locals employed by Hydro Tasmania (about 800).

The data also shows that the project would expand the state’s economic output by $17.8 billion over the next 30 years, equating to 27 per cent of the forecast total potential increase in national economic output generated by the development of the Australian hydrogen industry.

Dr Forrest, the founder of Fortescue Metals Group and one of the richest people in the country, said the only obstacle to the construction of Fortescue Future Industries’ Bell Bay facility was a deal on power prices with Hydro.

“The idea of a great big electricity pipe (Marinus Link) from Tasmania to the mainland, all this great spin around Battery of the Nation - what are they going to do with that electricity on the mainland?” he told the Mercury. “They’re going to use it to create jobs, create wealth, create sustainable economies. Why not use that 100 per cent in Tasmania?”

“There is a so much better alternative … than just a stupid power line under the water: you can create a huge industry to use all that power in Tasmania for Tasmanians - a massive tax-paying industry which has a wonderful history of being able to kick off the world’s green hydrogen industry, which will become the largest and most important industry in the world.”

TasNetworks, however, has said Marinus Link, the proposed 1500 MW undersea cable that would connect Tasmania to the mainland, will bolster the state’s energy security and put downward pressure on wholesale electricity prices.

Fortescue Metals Group, Port Hedland Operation

Dr Forrest said FFI wanted to negotiate a contract with Hydro for electricity supply matching - or close to matching - the agreement the state had with Rio Tinto to provide power for its Bell Bay aluminium smelter.

“They’re a much bigger company than us,” he said. “I don’t see why we can’t receive the same treatment.”

“We’ll invest considerably over half-a-billion Australian dollars.

“I think it would be shortsighted in the extreme to allow Hydro Tasmania to export all the power to the mainland when it can all be consumed in a fabulous new industry which will help turn the world green.”

FFI believes its Bell Bay plant could be one of the biggest green hydrogen facilities in the world once commissioned.

It’s not the only company looking to invest in the Bell Bay Advanced Manufacturing Zone. Origin Energy has proposed a 500 MW green hydrogen and ammonia facility, while ABEL Energy wants to build a 100 MW green hydrogen and methanol plant.