PERTH (miningweekly.com) – Iron-ore major Fortescue Metals’ energy arm, Fortescue Future Industries (FFI), has inked an option agreement with Tasmanian Ports Corporation (TasPorts) to exclusively negotiate all land and operating access requirements for its proposed 250 MW green hydrogen plant in Bell Bay in Northern Tasmania.

“We are excited to be working with local communities and all stakeholders to develop this important opportunity for the future prosperity of Tasmania and a world that needs to decarbonise,” FFI CEO Julie Shuttleworth said.

“FFI’s Tasmania green hydrogen project could be one of the world’s largest green hydrogen plants when commissioned, creating a significant export market for green hydrogen from Australia.

“The signing of this agreement with TasPorts marks the beginning of a ground-breaking partnership, aiming for the first export of green hydrogen from an Australian port.

“After investing in research and feasibility studies, we are serious about utilising Tasmania’s comparative advantage in renewable energy generation,” Shuttleworth said.

The project is targeted for an investment decision by the Fortescue board in 2021.

The Tasmania project envisages the construction of a 250 MW green hydrogen plant at the Bell Bay industrial precinct, with the capacity to produce 250 000 t/y of green ammonia for domestic use and international export.

An economic analysis completed by Deloitte found that the first 250 MW stage could deliver a net S$2-billion increase to gross state product over the life of the project. 

This benefit would be spread across Tasmanian businesses and local jobs, with the creation of over 500 full-time jobs during the development, construction and operation stages of the project and FFI will shortly release an expression of interest for the skills and jobs required across these project stages.