Feasibility Study for a Green Hydrogen and Ammonia Project

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The Feasibility Study for a Green Hydrogen and Ammonia Project is a study by Queensland Nitrates (QNP), Neoen and Advisian (as part of the Worley Group) of using green hydrogen to produce ammonia at QNP’s existing manufacturing plant in Queensland.Key resultsThe study found that the technologies themselves are technically feasible. Much of the learnings from the feasibility study arose from the novel alignment of the renewable energy generation assets, the electrolysers, the hydrogen storage and the ammonia plant.The ammonia plant is designed to be operated continuously at consistent rates, while the electrolysers will be operated intermittently to minimise electricity cost meaning that hydrogen storage is required.The feasibility study determined that the generation assets could be located remote from the plant and the demand responsive behaviour provided a valuable grid stabilisation service. The highest technically viable electrolyser load factor, with higher power price but lower capital cost was the optimal solution.The feasibility study determined that the project is economically viable with sufficient funding support in the form of grants concessional loans. Without funding assistance, the margin between the cost of inputs (primarily energy) and the value of the output (ammonia, a commodity with pricing linked to global benchmarks) is insufficient to support the project.

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