Fortescue Future Industries, the green energy offshoot of iron ore billionaire Andrew Forrest’s Fortescue Metals, is investigating options to convert a New Zealand oil refinery to become a hub for renewable hydrogen production.
In the latest of a strong of green hydrogen project proposals, FFI says it has signed a memorandum of understanding with Refining NZ to study options for the conversion of parts of the Marsden Point oil refinery.
The Marsden Point oil refinery – located north of Auckland – is slated for closure in April, 2022, but has characteristics, including access to port infrastructure and established export facilities, that would make it well suited for conversion to a green hydrogen facility.
Forrest, the FFI chairman, says the project formed part of the company’s broader plan to convert fossil fuel facilities into renewable hydrogen production sites, s he is also proposing to do at Liddell in NSW.
“Green hydrogen can provide all sorts of advantages to local and export economies – and is the answer our planet needs now,” Forrest said.
“Last week we announced we would look into producing green hydrogen at a retiring coal fired power station in Australia,” he said.
“Yesterday we shared our decision to progress to the next stage converting a grey ammonia plant to green, and today we are looking to kick off something similar at Marsden Point oil refinery in New Zealand.”
Marsden Point refinery has served as New Zealand’s primary supplier of liquid fuels, including petrol, diesel and aviation fuel, but the facility is set to be downsized as Refining NZ focuses on operating the refinery as an import-only facility.
This shift will make around 65 per cent of the site available for future developments, prompting FFI to seize the opportunity.
The announcement follows progress in a similar plan to convert the Incitec Pivot’s Brisbane based Gibson Island ammonia facility to operating on renewable supplies of hydrogen, rather than its current supply of fossil hydrogen.
FFI’s plans to supply the Gibson Island facility with renewable hydrogen could ultimately save the plant from closure, as it has struggled to lock in an affordable supply of fossil gas.
The group also announced last week it was working with AGL to repurpose the site occupied by the Liddell coal generator, and also announced it had opened the 60MW Chichester Hub solar farm, in partnership with Alinta, that will help power two of Fortescue’s mining sites in the Pilbara.
Fortescue said the Marsden Point oil refinery site would provide access to a deep-water power, as well as established connections to local electricity and gas networks. It also includes access to an industrial water supply.
Refining NZ CEO Naomi James said the potential of green hydrogen to support New Zealand’s energy transition is huge.
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