Ammonia Project QNP and Project Intro - Feb 2020 Text Text - - PowerPoint PPT Presentation

QNP Green Hydrogen to Ammonia Project

QNP and Project Intro - Feb 2020

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Commission 2000 BHP Glencore 90 employees 235 ktpa AN

QNP facility near Moura, Queensland Ammonium nitrate products – “Prill” (left) & “Emulsion”

50/50

• wnership

$25-35m local economy

QNP - Location

• Approximately 160km east of Gladstone
• Southern end of the coal rich Bowen Basin

Mines Serviced by QNP

CUR URRAGH

QNP Process – opportunity for additional hydrogen and ammonia production

Ammonia Nitric Acid Ammonium Nitrate Purchased ammonia Gas

QNP Production Process

Customers

QNP Green Ammonia Project Concept

H2O Air

• New plant - hybrid wind,

solar, battery (≈ 200 to 300MW)

• Approximately 30MW at

80% capacity for electrolysis

• 60GWh/yr for existing QNP

facility

• New plant - electrolysis

producing 3500 t/year of hydrogen (H2)

• New plant – liquid ammonia

(NH3) 20,000 t/year,

• H2 storage to absorb

renewable variability & provide continuous feed to NH3 plant

• Existing QNP ammonium nitrate (AN)

facility, output used for mining explosives within Queensland

• Currently using NH3 from on site gas

steam reformation, which is at capacity – additional 20kT/y sourced from 3rd parties

• Concept is to displace 3rd party supply

using new renewables/hydrogen/ammonia plant

New plant New plant Existing QNP Facility

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Blue Chip Customers

Expected Final Asset Ownership & Relationships

ASSET OWNERSHIP

PPA

MW/MWh

Supply of capacity & energy to both the new H2 and NH3 components, as well as to the existing QNP ammonia nitrate facility.

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H2O Air Expertise

Electricity supply Commercials, operations, plant integration PM, engineering, delivery

• Blue Chip Australian owners
• Experienced chemicals facility operator
• Providing grid support services
• Renewable energy supply
• 20 ktpa Ammonia sensible scale up step
• Established offtake and customers
• 20 ktpa Ammonia sensible scale up step

Green Hydrogen to Ammonia

Some knowledge from ARENA supported feasibility underway:

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• Interruptible loads

OEM inexperienced with dynamic

• peration of large electrolysers
• Significant early step to commercialisation

Scalability and learning to:

• take the next step to decarbonise QNP supply

chain

• Take the next step to scale renewables based

hydrogen export potentially via ammonia

• Balancing risk and scale

Large green hydrogen project, small in relation to the opportunity - the right size to demonstrate scalability.

• Learn as enablers emerge

Build capability in projects beyond studies. Potential enablers include:

• Lower cost Renewables
• Carbon pricing
• Natural gas markets
• Hydrogen markets

Potential Business Case Levers

Initial Business Case Feasibility Engineering Network Costs Energy Costs Grant Funding Concessional Finance Tax Treatment Final Business Case NPV Business Case Lever

Hydrogen Industry Development

End game:

• New Renewables based hydrogen export industry
• Decarbonise existing industries
• Viable Business Case
• Funding cost
• Risk – proven commercial

application, established performance characteristics

• Counterparty risk and

contractual arrangements

• .
• Electricity Cost
• Operate plant to electricity

market signals

• Unique operating and

contractual arrangements required

• Transmission

Connecting the electricity generation to the market – what to transmit?

• Capital Cost
• Capital/operating trade-
• ffs – renewables

intermittency/storage

• Scale
• R&D – technology,

manufacturing costs, response times.

Project stages

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Concept

• Prepare initial ARENA

application

• +-50% accuracy –

Class 1

FEED

• +-10% accuracy –

Class 3

• Finalise

renewables supply and financing

Feasibility

• +-30 accuracy –

Class 2a

• Financing and

renewables analysis

Delivery

• Construction and

Installation

• Commissioning

Aug 2019

• ARENA -

Feasibility Study Funding approval

• QNP Board

approval to proceed

Q1 2020

• ARENA -Full

Project Funding approval sought

• QNP Board

approval

Q4 2020

• ARENA -Full

Project Funding confirmation

• Board sanctions

– QNP and Neoen

Q4 2022 – Q1 2023

• Commence
• perations

6 months 8-15 months 24 months

ARENA Hydrogen Round

Additional Information

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