A proposal to build Australia’s first commercial scale battery cathode facility for EV and storage batteries at the Middle Arm precinct near Darwin has taken a step forward, but concerns have been raised about the future of the flagship hydrogen project after Fortescue Energy closed its local office.
Australian company Avenira says it has now signed a licence and technology transfer agreement with Taiwan-based Alees which will allow it to manufacture lithium ferro phosphate (LFP) battery cathodes at Middle Arm.
Avenira says the project could create 500 jobs in construction and 100 in operations, and aims to produce 30,000 tonnes per year of LFP power, and generate some $1.5 billion in revenues.
The proposal is one of five that have secured preliminary land deals with the Middle Arm Sustainable Development Precinct, a signature project for the NT government which has been criticised because it is also seen as a facilitator for LNG export facilities and production for the the controversial Beetaloo gas fields.
However, questions have been raised about one of the flagship projects for the site, a proposed green hydrogen facility from Fortescue Energy, after the company laid off its local staff apart from former chief minister Michael Gunner.
The decision was conformed by Fortescue, which said it was part of a proposal to centralised its activities, and it insisted that the Middle Arm project had not been abandoned.
Fortescue Energy is committed to delivering green hydrogen projects in Australia and is making good progress across our portfolio,” a spokesperson said in an emailed statement.
“We have made changes to our West Coast, South Coast and Northern Territory operations to reflect this progress and focus on centralised project delivery for Australia as a whole. The move follows similar changes to our East Coast operations in June.”
Gunner’s LinkedIn profile has morphed from head of NT operations, to head of Australia West (including the NT) and now to director of business development in Australia and New Zealand.
“These changes have been actioned based on a collective view of projects across Australia – they are unrelated to individual projects and as such there is nothing to update you on specifically around Middle Arm,” the spokesperson said.
“Neither changes to our structure nor the physical location of our team members impact the resourcing allocated to progressing opportunities in the Territory. We are continuing to work with all stakeholders, including the Government, to explore and progress potential projects in the Northern Territory.”
Some observers suggest that Fortescue may rethink its commitment to Middle Arm after control of the giant Sun Cable solar and battery project in the NT went to software billionaire Mike Cannon-Brookes, following a falling out with Fortescue boss Andrew Forrest over the direction of the project.
Sun Cable still plans to provide power to new green industries in Darwin, including potential hydrogen projects, and intends to pursue the proposed 4,300km sub-sea cable that would transport power to Singapore and potentially other south-east Asia countries.
The NT government is promoting Middle Arm as its commitment to a renewable energy future and the green energy and industrial transition, despite the involvement of the gas industry.
“This is what the Territory Labor Government is about – finding quality, innovative projects that will create jobs now and into the future,” chief minister Natasha Fyles said of the deal between Avenira and Aleees.
Avenira chairman Brett Clark said the Middle Arm plant would be the first LFP plant in Australia, and would add value to its phosphate resource at the Wonorah mining project.
“The production of LFP cathode material is an important pre-cursor to the manufacture of LFP batteries, which are gaining popularity among EV manufacturers globally and are also the preferred type of battery for energy storage systems,” he said.
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