Keppel Infrastructure Holdings, Temasek and Australian firm Incitec Pivot have signed a memorandum of understanding (MOU) to investigate the feasibility of producing green ammonia in Queensland and New South Wales (NSW), Australia for export.
In a joint media release on Nov 5, the companies state that through the partnership, production will meet the growing market demand for carbon-free energy globally, including Singapore. The green ammonia may be used as a direct feedstock in green energy generation, or as a hydrogen carrier to provide green hydrogen solutions.
Incitec Pivot, an ASX 100 company, is Australia’s largest supplier of fertiliser on Australia’s east coast and a global leader in the resources and agricultural sectors, with assets capable of blue/green conversion of ammonia. Incitec Pivot will contribute its capabilities in ammonia production, along with its strategic land at Kooragang Island in the Port of Newcastle, NSW.
Keppel Infrastructure will contribute its capabilities in developing and operating energy and environmental infrastructure, while Temasek will fund part of the feasibility study.
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The three parties will work closely with the Queensland and NSW Governments to explore the feasibility of essential infrastructure, licences and approvals to facilitate the production and export of green ammonia.
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“Keppel is pleased to partner with Incitec Pivot and Temasek to explore and identify feasible pathways to develop secure, scalable and cost competitive green ammonia supply chains from production, transportation and storage to distribution and end-uses in the global and regional markets. Availing green ammonia, as a potential source of clean fuel to support the demand for sustainable energy, can meaningfully contribute to deep decarbonisation in power and hard-to-abate sectors,” says Cindy Lim, CEO of Keppel Infrastructure.
The MOU also supports Australia's National Hydrogen Strategy, which has identified seven clean hydrogen hubs across Australia, which includes Queensland and NSW, where IncitecPivot has existing ammonia asset and brownfield sites.
“Both our Kooragang Island site and potential greenfield site in Gladstone have the advantage of being nominated by the Australian Government as locations for hydrogen hub development,” says Jeanne Johns, managing director and CEO of Incitec Pivot.
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Frederick Teo, managing director of sustainable solutions at Temasek, stresses the need to seek alternative clean energy to drive sustainable development. “Adding a carbon-free fuel to the market will enable more companies to grow in a sustainable manner and potentially open new business opportunities as well.”
Keppel Corporation does not expect the abovementioned development to have any material impact on its earnings per share and net tangible asset per share for the current financial year.
As at 2.33pm, shares in Keppel Corp are down 1 cent or 0.19% lower at $5.27.
Photo: Keppel
