Australia’s Port Anthony Renewables and Singapore’s global gasification technology integrator CAC-H2 have formed a multi-million dollar joint venture to capitalise on the growing global demand for green energy.
The $20 million plus agreement will see CAC-H2 build and commission a waste woody biomass gasification system to produce carbon negative Green Hydrogen & Ammonia for both domestic use and export internationally.
Under the deal, a Special Purpose Vehicle (SPV) has been formed called “Hydrogen Plus”. Under the arrangement PAR will be one of the first in Australia to produce a commercial amount of Green Hydrogen, representing a significant competitive advantage for the company.
Managing Director¸ Benjamin Anthony, said Port Anthony Renewables Ltd has secured a 30% equity stake in the SPV. The initial target is to produce three tonnes per day of green hydrogen for domestic distribution, and to expand the plant’s capacity to be aligned with domestic demand. The joint venture also plans to build out a large-scale green ammonia production plant on the Port for export to Asia. Ammonia production capacity is expected to be a minimum of 30,000 tonnes per annum.
This Joint Venture with CAC-H2 brings proven established technology replicated from its previous global projects. Our goal for the Port Anthony Renewables Hub is to include every aspect of green Hydrogen production, storage and distribution, and a biomass project such as this represents a low capex, and a shorter approvals pathway,” Mr Anthony said.
“It will also allow the earlier implementation of supporting Hydrogen separation, storage and distribution networks – and that will assist those other technologies which require a longer gestation period.”
Port Anthony Renewables Limited (PAR) is an Australian company operated by the Anthony family, who have owned and operated the port for over 20 years. PAR benefits from its strategic location and experienced management allowing it to take advantage of the burgeoning Australian hydrogen sector which is estimated to be worth $56 billion by 2050.
Massive demand for renewable hydrogen
Major economies around the world are rapidly shifting to renewable energy sources as they strive to meet their zero emissions targets.
The growing demand for hydrogen in particular is evident with global oil majors like BP and Woodside announcing their hydrogen aspirations.
Significant Export Opportunity for Green Ammonia
Japan’s Green Growth Strategy released in December 2020 set the pathway for Japan to test co-firing ammonia in coal power plants in 2021 and increase its use from 2030 to meet its 20% blending target. If Japan mixed 20% Ammonia into all its coal power plants, it would need up to 20 million tons of ammonia per year.
The Australian Renewable Energy Agency estimates global demand for hydrogen exported from Australia could be over 3 million tonnes each year by 2040, which could be worth up to $10 billion annually to the economy by that time.
This makes it a major focus for Australia, with the CSIRO releasing a National Hydrogen Roadmap and the Australian government putting in place its National Hydrogen Strategy.