Fortescue pulls green hydrogen and ammonia plan from NT’s Middle Arm precinct

Andrew Forrest’s Fortescue Metals has formally given up on its short term plans to create a green hydrogen and ammonia hub in the Northern Territory, effectively handing back its land allocation in the Middle Arm industrial hub near Darwin.

The move had been expected for some time. Renew Economy reported last September on the speculation that Fortescue was no longer interested in the project after laying off its local staff, apart from former chief minister Michael Gunner. But Gunner also quit the company early this year.

The decision also follows Forrest’s withdrawal from the massive Sun Cable solar project in the NT after a disagreement with fellow billionaire Mike Cannon-Brookes over the future of the project. Forrest wanted Sun Cable to focus on green hydrogen, while Cannon-Brookes was focused on other green industries in Darwin and a sub-sea cable to Singapore.

This week, the NT News reported that Fortescue had not extended its “do not deal” agreement with the NT government, meaning that it had given up its share of the land that has been reserved for five separate projects in Middle Arm. This was later confirmed by Fortescue.

“Fortescue’s Do not Deal commitment at Middle Arm expired at the end of May 2024,” a spokesman told Renew Economy by email.

“Following discussion with the Northern Territory Government regarding Fortescue’s projected development horizon for this project opportunity within our global pipeline of green hydrogen projects, the commitment was not extended by the Land Development Corporation.

“Fortescue continues to consider Middle Arm Sustainable Development Precinct an attractive long-term location for green product projects.”

Fortescue has big plans to reach “real zero” emissions by 2030, at least at its Pilbara mining operations, and to produce vast amounts of green hydrogen. But its focus has been on international projects because of bigger support from governments, and the future of another green hydrogen project in Australia, at Gibson Island, is also uncertain.

The withdrawal is, however, a blow to hopes that the Middle Arm precinct can become a genuine green energy hub, and not be at least partially focused on fossil gas imports.

The territory government has painted Middle Arm as a “sustainable” industrial development, but the project – and the federal government’s $1.5 billion funding deal – has been criticised by environmental groups for its support of fossil fuels, and because they say it is a lousy location away from key infrastructure.

The centre of the protests is on the role of Tamboran, the company behind the controversial Beetaloo Basin gas project in the Northern Territory, and its plans to use the Middle Arm precinct to build an LNG export terminal, by far the biggest venture.

The other projects include a green hydrogen project proposed by an offshoot of Total Eren, and two projects related to the battery industry – a planned LFB cathode manufacturing facility from Avenira, and a vanadium oxide production facility from Tivan.

The NT government says it has potential parties ready to fill the hole left by Fortescue, but has given no indication who and what sort of industry they represent.

Sun Cable still has ambitions to send power to Middle Arm, and other green industries in the Northern territory as part of a modified plan that will now see the generation split between wind and solar, with 12 gigawatts of each rather than just 20 gigawatts of solar.

Sun Cable hopes a first stage, supported by a high voltage transmission line to Darwin, will support the first stage of the project, with a second stage to follow if agreements can be landed for the sub-sea cable and energy exports to Singapore.