Global metals giant Trafigura Group and its majority owned Nyrstar have unveiled plans for a major renewable hydrogen facility at the Port Pirie smelter in South Australia to target both domestic and export markets.
The first stage of the $750 million would produce around 20 tonnes per day for export in the form of green ammonia, with an 85MW electrolyser. A full scale plant would produce 100 tonnes per day of green hydrogen – for domestic and export markets – from a 440MW electrolyser facility.
The two companies have launched a $5 million engineering study for the Port Pirie Green Hydrogen Project, which will be jointly funded by Trafigura, the world’s largest metal trading house, and the South Australian government. A final investment decision will be made by the end of 2022.
Nystar, which operates the lead and zinc smelter at Port Pirie, would use the oxygen produced from the electrolyser process in its smelting operations and will source 100 per cent renewable energy supply – both helping to make its operations there competitive with overseas plants.
“As a leading multi-metals manufacturer, producing and recycling vital metals required for the energy transition, Nyrstar Australia needs to remain competitive on the global stage, on cost and in terms of carbon intensity,” said Dale Webb, the vice president of Nyrstar’s Australian operations.
“The Port Pirie Green Hydrogen Project will meet this challenge head on by delivering renewable energy and oxygen to prove that we can decarbonise a heavy industrial facility and at the same time ensure more efficient and cost-effective production of low carbon metals for the world.
“This will create a positive differentiator for our products with international customers, and help underpin a stronger, more secure, more sustainable future for Nyrstar Australia.”
The Swiss-based Trafigura says it will source 100 per cent renewable energy to provide the electricity needs for the electrolyser, which are expected to be more than 1,000MW of capacity to meet those needs.
Tim Rogers, the had of Trafigura’s Australian operations, said the project would target the heavy vehicle transport industry, and mining and other energy-intensive industries across the state.
South Australia already sources more than 62 per cent of its electricity supply from wind and solar, aims to lift that to “net 100 per cent” renewables by 2030, although it is likely to reach that target well before then.
It also has a longer term target of reaching 500 per cent renewables, means it wants to produce five times as much electricity from renewables as is needed for the local grid, for export to other states and to other countries in the form of green hydrogen and ammonia.
“This $750 million project is part of the ongoing transformation of South Australia into a producer of green hydrogen of global significance based on our outstanding renewable energy resources,” said Premier Steven Marshall.
“Projects like Trafigura’s with the support of the South Australian and Federal Governments – will help South Australia achieve net 500% renewable energy compared to current grid demand by 2050, as detailed in Our Climate Change Action Plan.”
The oxygen would be used to supply around 20 per cent of the needs of the Port Pirie smelter, and the hydrogen converted to ammonia for export and use by shipping, domestic transport and supporting the Port Pirie Industrial Precinct.
“The South Australian Government’s Hydrogen Action Plan will turn our world-class wind and sun resources into clean fuel to run shipping and trucking fleets, and power industry here and abroad,” said energy minister, and local member, Dan Vam Holst Pellekaan.
Van Holst Pellekaan said the project would allow other industries to be established at Port Pirie to make use of the available hydrogen and ammonia, whilst improving the competitiveness of the smelter.
“Our vision is a Renewable Energy Industrial Precinct in the Spencer Gulf – incorporating Port Pirie, Port Augusta, Whyalla and our world-class copper resources, to support jobs for generations to come.”
It is the latest in a string of green hydrogen projects in South Australia, including H2U’s Eyre Peninsula Gateway project, and Australia’s largest operating green hydrogen facility, AGIG’s 1.25MW facility at Tonsley which is blending hydrogen into the existing gas network in nearby Mitchell Park.
