Construction starts at state’s first “end-to-end” hydrogen and ammonia production plant

Construction has started on what will be the first “end-to-end” hydrogen and ammonia plant in New South Wales, combining an up to 15 megawatt (MW) electrolyser and producing more than 200 tonnes of green hydrogen a year and up to 4,500 tonnes of “low carbon” ammonia a day.

NSW energy minister Penny Sharpe announced the milestone on Friday for the Good Earth Green Hydrogen and Ammonia (GEGHA) project, which is being built on a cotton farm around 33 km south-west of Moree.

The ammonia produced by the plant will be used to make “green fertiliser” for Sundown Pastoral Company’s Keytah Farm – a massive 65,000-acre sustainable cotton and cropping operation – and other farms in New England.

It’s not entirely clear what energy sources will be used to power the project, but planning documents say the “primary objective” is to use “solar energy generated adjacent to site,” with reference to an existing Wathagar Solar Farm Stage 1 that is 8.65 megawatts (MW) and a Stage 2 project proposed at 27 MW.

Sharpe saus GEGHA’s plant will boost the state’s ability to produce essential fuel and fertiliser locally, strengthening farming supply chains in the face of global disruptions while also helping to decarbonise the agriculture industry.

“The project is scalable and repeatable, representing a model that can be rolled out across regional NSW to increase domestic manufacturing and develop energy security through sovereign supply chains for key industries,” the minister’s statement says.

The project is backed by $45.2 million through the state Labor government’s NSW Hydrogen Hubs Initiative and the Net Zero Manufacturing Initiative.

“The start of construction on GEGHA marks a major milestone for hydrogen capacity building in NSW, showing how clean energy investment can deliver real benefits for regional communities, industry and farmers,” Sharpe said on Friday.

“The current fuel shock shows why projects like this are so important – they help make farming supply chains more reliable by reducing our need for imported fertilisers.”

Sundown Pastoral Company owner, David Statham said the recent fuel and fertiliser crisis caused by the US and Israel invasion of Iran have highlighted how exposed Australia’s farmers are to volatile international markets.

“Australia is very vulnerable when it comes to imported fuel and fertiliser,” Stratham said. “Farmers live and breathe those pressures every day. We need to find another solution to insulate regional economies that are dependent on agriculture, and this shows it’s possible.”

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