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Another example of the electrical sytem issues coming to a head, the Fortesque hydrogen plant being proposed for the old fertilizer plant at Gibson Island, has ground to a halt due to cost of power and reliability of supply from the solar farm.
Heavy power using industries need certainty of supply and the way we are not following any sensible critical path toward renewables, isn't giving companies any confidence.
A well thought out plan showing a balanced well engineered way forward, is becomming more and more apparent IMO. Otherwise the Govt's open cheque book approach is bound to be rorted, wasted and ill directed IMO.
A follow-up question asked whether the price problem was related to bulk power price — for which it had already secured a 337.5MW solar power purchase agreement with developer Genex — or the dispatchable power it might need to access when the sun isn’t shining.
“Honestly, it’s both,” Hutchinson replied. “We want to make sure that to get the right economics that we get the power price down to a level where we produce the hydrogen and we don’t want to be switching the plant on and off as much as possible, so we’re really looking at getting the power price for both down, yes.”
renewable power prices needed to be less than US$30/MWh to be competitive on the global marketplace.
Average wholesale electricity prices in Queensland in Q4 2023 were A$79 (US$52.25) per MWh, according to the
Australian Energy Regulator.
Hutchinson also told the analyst call that its next green hydrogen projects to reach FID will be the “larger” ones in Norway and Brazil.
In particular, Fortescue is “fast-tracking” one project in Brazil and another in Norway, he added.
“It’s cheap power we’re looking for and where you have consistency, for example, for hydro[power], where’s you’re taking it straight from hydro resources, you know, that’s what we’re doing in Norway and Brazil. That’s very, very efficient.”
Its Norwegian project is the 300MW Holmaneset project near Svelgen, western Norway, which would produce more than 225,000 tonnes of green ammonia
Heavy power using industries need certainty of supply and the way we are not following any sensible critical path toward renewables, isn't giving companies any confidence.
A well thought out plan showing a balanced well engineered way forward, is becomming more and more apparent IMO. Otherwise the Govt's open cheque book approach is bound to be rorted, wasted and ill directed IMO.
Fortescue seeks government help to reduce power prices for stalled 500MW green hydrogen project in Australia
Australian H2 developer has already delayed final investment decision three times on landmark Gibson Island project
A follow-up question asked whether the price problem was related to bulk power price — for which it had already secured a 337.5MW solar power purchase agreement with developer Genex — or the dispatchable power it might need to access when the sun isn’t shining.
“Honestly, it’s both,” Hutchinson replied. “We want to make sure that to get the right economics that we get the power price down to a level where we produce the hydrogen and we don’t want to be switching the plant on and off as much as possible, so we’re really looking at getting the power price for both down, yes.”
renewable power prices needed to be less than US$30/MWh to be competitive on the global marketplace.
Average wholesale electricity prices in Queensland in Q4 2023 were A$79 (US$52.25) per MWh, according to the
Australian Energy Regulator.
Hutchinson also told the analyst call that its next green hydrogen projects to reach FID will be the “larger” ones in Norway and Brazil.
In particular, Fortescue is “fast-tracking” one project in Brazil and another in Norway, he added.
“It’s cheap power we’re looking for and where you have consistency, for example, for hydro[power], where’s you’re taking it straight from hydro resources, you know, that’s what we’re doing in Norway and Brazil. That’s very, very efficient.”
Its Norwegian project is the 300MW Holmaneset project near Svelgen, western Norway, which would produce more than 225,000 tonnes of green ammonia