Fortescue Metals Group has pressed ‘go’ on a $230 million Gladstone green hydrogen project targeting first production in 2025.
The Gladstone PEM50 project is one of three green energy and green metal projects valued at about $1.14 billion ($US750 million) in total to win Final Investment Decision (FID) approval from the Fortescue board.
The Christmas Creek green iron trial commercial plant in Western Australia and the Phoenix Hydrogen Hub in Arizona have also received the nod.
These are three of the first green hydrogen deals ever to be progressed to FID in the United States and Australia, according to Fortescue, with a pipeline of projects to follow that will significantly scale up the company’s global green energy production.
Expected to cost up to $US150 million ($228 million) to develop, the Gladstone PEM50 project will be constructed adjacent to Fortescue’s existing Gladstone Electrolyser Manufacturing Facility, on the Green Energy Manufacturing site.
It is a two-stage 50MW green hydrogen project based on Fortescue’s own Proton Exchange Membrane (PEM) technology.
Phase one comprises installation of a 30MW electrolyser plant, with the remaining 20MW capacity to be installed and commissioned in 2028, aligned with the availability of water supply.
Fortescue said the 50MW plant would have the capacity to produce up to 22 tonnes per day or 8000 tonnes per annum of green hydrogen.
“The Gladstone PEM50 Project in Queensland will produce hydrogen at an industrial scale, allowing us to demonstrate the high quality of Fortescue’s own hydrogen systems,” Fortescue Energy chief executive officer Mark Hutchinson said.
Construction is expected to commence in 2024, with first production of green hydrogen in 2025.
About $60 million ($US40 million) is expected to be spent this financial year to cover the supply of equipment and the construction and installation of the electrolyser, balance of system, balance of plant and associated infrastructure.
The Gladstone PEM50 project will use renewable energy supplied from Australia’s National Energy Market via a 275 kilovolt transmission line newly installed by Queensland Powerlink.
