Fortescue and Incitec Pivot are planning to convert an ammonia facility in Queensland to run on green hydrogen.

Fortescue Future Industries (FFI) and Incitec Pivot (IPL) elected to commence front end engineering design (FEED) and an agreement to govern the project through to a final investment decision (FID).

The proposed project would see the construction of a new 500MW hydrogen electrolysis facility at IPL’s Gibson Island ammonia facility to produce green hydrogen, as well as the retrofitting of IPL’s existing ammonia manufacturing facility to run on the green hydrogen produced onsite.

The plans will see the facility cease traditional fertiliser manufacturing early in the new year. 

The Brisbane ammonia manufacturing and port facility conversion would be a world-first.

IPL managing director and CEO Jeanne Johns says the company wants to see a more sustainable future for the Gibson Island ammonia manufacturing facility after traditional fertiliser production ceases.

The proponents say the facility could ultimately produce up to 400ktpa green ammonia.

The FEED phase is anticipated to cost around $38 million, with the Federal Government, through the Australian Renewable Energy Agency, contributing $13.7 million.

The companies are also working with the Queensland Government to understand how the project can be used to benefit local energy markets and support the delivery of the Queensland Government’s Energy and Jobs Plan and broader development objectives.