Some thing I have thought about is whether a floor will form under the local electricity price.
For example we know that the ability to liquify and export natural gas has basically put a floor under the gas price and keeps gas prices high.
If producing hydrogen for export and synthetic jet fuels etc becomes a thing, it could put a floor under electricity prices.
This would be a great thing for owners of electricity infrastructure and stimulate huge amounts of new investment and jobs, but it could cause high electricity prices for a while.
Let’s say jet fuel sells for $2 a litre, and it takes 5 kWH of electricity to make a litre of jet fuel, this might mean that the companies running the electrolisers converting electricity to liquid jet fuel will buy as much electricity as they can at up to 30 cents per KWH, meaning households have to pay more.
I think the hydrogen producers will have their own production, but also supplement that by buying from the market when the market is producing more wind or solar than it can consume and electricity is cheap. But that does open the doors to exactly what pricing the turn on and shut off the electrolysis plants.No doubt there is a production cost but if the electricity supply is renewable (maybe owned by the hydrogen producers themselves) then they can get cheap energy without driving the price up for the rest of us as long as there are sufficient sources of renewable for other businesses, industry and consumers.
Here is the video of their processing plant stacking the first pile of ore, Millions of tonnes to follow soon.The Iron Bridge project is moving to production. The first crushing or ore has been made. Production will start in March 2023 and reach 22 m tons of 67% ore concentrate when fully operational.
The plant will also feature green energy use across it's operations.
Fortescue’s Iron Bridge Magnetite project marks first ore into processing plant
Oct 31, 2022
Fortescue’s track record of delivering complex projects continues with today marking first ore feed into the processing plant at its Iron Bridge Magnetite project in the Pilbara.
With first production anticipated in the March 2023 quarter, Iron Bridge will see the world’s fourth largest iron ore miner deliver an enhanced product range and create 900 new jobs.
Significantly, it could become one of Fortescue’s first fossil fuel free sites, enabled by the recently announced world leading US$6.2 billion decarbonisation investment to reach real zero Scope 1 and 2 emissions by 2030.
Once I see the words "game changer" I immediately look at the chart and my profit.Seems as if FFI is firming up it's plans for developing massive solar and wind power plants to produce green hydrogen in Queensland.
Game changing North Queenland Super Hub to power green hydrogen with wind, solar
Nov 14, 2022
North-West Queensland is set to become home to one of the State’s largest ever renewable energy projects, with Fortescue Future Industries (FFI) and Windlab to partner on a Super Hub which could generate more than 10GW of wind and solar power and underpin the industrial-scale production of green hydrogen from purpose-built facilities within Queensland.
Green hydrogen has been highlighted as a solution for decarbonisation across a range of sectors, including, transport, industrial and energy storage. According to research conducted for the Australian Renewable Energy Agency, demand for hydrogen exported from Australia could be over three million tonnes per year by 2040, injecting up to $10 billion into the economy annually.
However, industrial-scale green hydrogen – hydrogen produced from renewable energy – has been constrained by the lack of renewable supply to power the process of extracting hydrogen from water through electrification.
.... FFI will partner with leading renewables developer Windlab on the North Queensland Super Hub, leveraging Windlab’s decade-long presence in the region including developing and operating Kennedy Energy Park, a world-first hybrid wind, solar and battery storage facility near Hughenden.
The first stage of the proposed project includes the 800MW Prairie Wind Farm and the 1000MW Wongalee project and is currently in detailed planning, with land agreements in place and the application for development approval for Prairie Wind Farm planned for submission in the coming months.
Subject to approvals, construction on the first stage is expected to commence in 2025 with the projects anticipated to begin to produce power by 2027. Energy generated from the project stands to produce green hydrogen as well as feed renewable power to the grid.
Game changing North Queenland Super Hub to power green hydrogen with wind, solar
FFI and Windlab to partner on a Super Hub which could generate more than 10GW of wind and solar power and underpin the industrial-scale production of green hydrogen.www.fmgl.com.au
?????Once I see the words "game changer" I immediately look at the chart and my profit.
For FMG today it was a SELL for me, so I'm presently out.
Let the FMG thread continue now with people talking about how skinny they are, what shape poos they produce and what they bloody well eat and give the @Country Lad thread a bit of a break.
Jesus wept.
gg
Thanks @basilio?????
GG in what universe did you think Twiggy and FMG/FFI were not going to go full bore with attempting to create a 3 Million ton a year Hydrogen market by 2030 ? For two years now it has been absolutely clear that FMG was decarbonising its operations and FFI was (somehow..) going to reach it's stretch goal for 2030. It is an absolute game changer for FMG in particular and heavy industry in general.
But having said that FMG's core business of mining and selling iron ore is still front and centre of operations. They are still expanding their iron ore operations locally and internationally. FFI takes 10% of the profits to make it's running. But the current main game stays.
If Twiggy does reach his stretch goals in 7-8 years then there will be two massive income earners in the FMG portfolio - iron ore and hydrogen based heavy industry.
yes , several times i have threatened to change my name to BrianAs Brian's mother said " He's not the Saviour, he's just a very naughty boy".
Once I see the words "game changer" I immediately look at the chart and my profit.
it was the folks that kept expecting miracles , that was the problemWhy be Brian when you can be Brain, divs?
Australia as a whole does not need to import coal, but WA will have to import coal for a little while yet as they have closed down or bankrupted all the mines in that state. South Australia has closed it only coal mine at Leigh Creek, but if my memory serves me correctly, they also closed down their remaining coal fired power plants. .Australia shouldn't have to import coal in the next 50 years ( we still have massive reserves laying undeveloped)
if Australia needs to import coal we have a government policy problem ( and NOT just in QLD )
and 'green energy ' is already failing to the extent they are now including uranium as 'clean energy ' despite having had 40 years to use uranium to replace coal-fired power-plants ( and not doing so , properly )
with such proven planners in charge , what could possibly go wrong
of course i could always be a spoil-sport , and ask how are they going to build all the infrastructure ( to make and transport hydrogen ) in a global economy on the verge of a ( coordinated ) collapse
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