Fortescue strikes deal with Queensland for green hydrogen transmission link

Fortescue Future Industries has secured support from the Queensland government to connect two proposed green hydrogen projects to the grid so that they can access supplies of renewable electricity.

In a deal struck with the state government-owned Powerlink and the Economic Development Queensland (EDQ), two new green hydrogen developments at Gibson Island and Aldoga – near Gladstone – will be connected to the Queensland transmission network and supplied with renewable electricity.

Queensland deputy premier Steven Miles said the connection agreement was a crucial component in the development of the renewable hydrogen facilities and the state government’s plans to establish itself as a “hydrogen and renewables manufacturing superpower.”

“FFI are seeking to build a facility at Gibson Island to produce around 50,000 tonnes of renewable hydrogen per year. Connection to the transmission network is vital to allow green energy to power this facility,” Miles said.

“Queensland’s constantly growing fleet of renewable power stations will provide the energy to produce green hydrogen ready for export to overseas markets like Japan and South Korea.

“By working with Powerlink, FFI will receive a streamlined service across their Queensland connection developments, which could be up and running as soon as 2023.”

Green hydrogen facilities are being developed by the green energy and hydrogen offshoot of Fortescue Metals Group – with Fortescue Future Industries working to fulfil founder Andrew Forrest’s ambition of pivoting the iron ore giant into green energy and materials.

Speaking about the deal, Forrest said the new connection projects would help boost the amount of renewable energy being generated in Queensland.

“We look forward to working with Powerlink to use the grid to deliver green power to our projects, enabling us to move quickly and supporting the entry of more renewables and decarbonisation of the electricity network,” Forrest said.

“FFI’s goal is to turn Queensland into the global green energy heartland and to help create jobs now and into the future.”

FFI has been working with Incitec Pivot to convert its existing ammonia facility at Gibson Island to run on green hydrogen. The plant is currently supplied with fossil gas, but due to the rising costs of the fuel, Incitec Pivot had been actively considering closing the plant.

However, a feasibility study completed by FFI found that a conversion to producing renewable ammonia would be technically feasibly, providing a potential life-line for the plant.

The Queensland government has also been backing a plan for a 3,000MW green hydrogen production facility at Aldoga, as it eyes opportunities in an emerging export market for zero emissions hydrogen.

The connection agreement will include the construction of a new 275kV switchyard and two 275kV connectors to supply electricity to the proposed Gibson Island facility.

An additional 275kV transmission line and substation will be built to supply an additional facility at Aldoga.

Queensland minister for energy, renewables and hydrogen, Mick de Brenni, said that through the construction of the new transmission network infrastructure, the green hydrogen facilities would be able to take advantage of renewable electricity supplies being built as part of the state’s Renewable Energy Zones.

“By establishing Renewable Energy Zones across the state, the Queensland Government will enable a new market for thousands of megawatts of new renewable energy,” de Brenni said.

“Powerlink’s transmission network will then deliver this clean energy to places like Gibson Island and Gladstone where it will be converted into green hydrogen and green ammonia.”

“Growing Queensland’s green hydrogen industry means new jobs and global decarbonisation solutions for our trading partners.”