Tag Archives: hydrogen

Australia underlines hydrogen ambitions with new A$300 million fund

Energy minerals, Environmental, Mining finance, Mining services, Power supply for mines, Sustainable mining, , , , ,

Australia is stepping up its efforts to support the growth of a clean, innovative, safe and competitive domestic hydrogen industry, with the launch of a new A$300 million ($192 million) fund.

An early priority of the A$300 million Advancing Hydrogen Fund, reflected in the Australian Government Clean Energy Finance Corporation (CEFC) Investment Mandate Direction 2020, will be investment in projects included in the ARENA Renewable Hydrogen Deployment Funding Round. This is a A$70 million grant program aiming to demonstrate the technical and commercial viability of hydrogen production at a large-scale using electrolysis.

The Australia government has been keen to establish a hydrogen industry, with investments made in the Hydrogen Energy Supply Chain (HESC) pilot project based on brown coal mined in the Latrobe Valley, and, more recently, a Future Energy Exports CRC.

CEFC CEO, Ian Learmonth, said: “Hydrogen has the potential to make a substantial contribution to our clean energy transition, reducing emissions across the economy while underpinning the development of an important domestic and export industry.

“Renewable hydrogen can enable the deep decarbonisation of notoriously difficult-to-abate sectors, particularly in transport and manufacturing, while accelerating the contribution of renewable energy across the economy.

“CEFC finance remains central to filling market gaps, whether driven by technology, development or commercial challenges. We are confident we can use our capital to help build investor confidence in the emerging hydrogen sector, which is an exciting extension of our investment focus.”

The CEFC Advancing Hydrogen Fund will draw on existing CEFC finance. In line with the CEFC Act, projects seeking CEFC finance through the Advancing Hydrogen Fund are required to be commercial, draw on renewable energy, energy efficiency and/or low emissions technologies and contribute to emissions reduction, the CEFC said.

Through the Advancing Hydrogen Fund, the CEFC expects to provide either debt or equity finance to eligible larger-scale commercial and industrial projects, typically requiring A$10 million or more of CEFC capital, it said.

Hydrogen is currently used mainly for ammonia production in Australia, accounting for around 70% of total hydrogen use nationally. The current ammonia production process is a material carbon emitter, accounting for almost 1% of total Australian greenhouse gas emissions, the CEFC says.

Learmonth added: “Accelerating the transition to green ammonia, produced using renewable energy, represents a sizeable abatement opportunity for Australia, with the potential to position Australia as a leading global producer and exporter of green ammonia.”

He said hydrogen is an extremely versatile energy carrier gaining significant support worldwide as the fuel of the future.

He added: “We see green hydrogen as offering the most credible pathway to decarbonisation for high emitting sectors and those which lack scalable electrification options. Together, these sectors are responsible for driving some 30% of Australia’s greenhouse gas emissions.”

In considering investment proposals for the Advancing Hydrogen Fund, the CEFC Investment Mandate directs the CEFC to prioritise projects that promote the objectives of the National Hydrogen Strategy and that focus on one or more of the following:

  • Advancing hydrogen production projects;
  • Developing export and domestic hydrogen supply chains, including hydrogen export industry infrastructure;
  • Establishing hydrogen hubs; and
  • Other projects that assist in building domestic demand for hydrogen.

CEFC finance for the hydrogen sector has the potential to deliver significant benefits, according to CEFC, including:

  • Drive large-scale deployment of electrolyser technologies: leading to technology cost reductions, improved supply chain expertise, increased industry expertise and offtake opportunities;
  • Catalyse the hydrogen industry: to accelerate the deployment of large-scale renewable energy hydrogen technologies, including demand-side projects to achieve price discovery, increase transparency of current and projected economies of scale, and increase skills and market knowledge;
  • Access to tailored finance: providing investing support to project proponents as they seek to accelerate hydrogen developments; and
  • Support the implementation of the National Hydrogen Strategy: including its aims to create jobs, especially in regional areas, contribute to a cleaner environment, increase prosperity and enhance Australia’s fuel security.

The ARENA Renewable Hydrogen Deployment Funding Round is receiving expressions of interest for projects which demonstrate electrolysis and associated renewable hydrogen technologies at scale; facilitate a pathway to technical and commercial viability of renewable hydrogen in Australia; and provide price discovery and transparency in relation to the current and projected economics for renewable hydrogen technologies, CEFC says.

FMG strengthens Western Australia hydrogen ties with ATCO agreement

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ATCO and Fortescue Metals Group say they have signed an agreement to explore the potential to deploy hydrogen vehicle fuelling infrastructure in Western Australia.

FMG, only last month, agreed to team up with Anglo American, BHP and Hatch to form a Green Hydrogen Consortium looking at ways of using green sources of hydrogen to accelerate decarbonisation within their operations globally.

It also already has a partnership in place with Australia’s CSIRO on hydrogen technologies to support the development of new industries, create jobs and pave the way for low emissions export opportunities for Australia.

ATCO, meanwhile, says it has led the development of renewable hydrogen in Australia, and was the first company to generate hydrogen through electrolysis, powered only by solar.

ATCO and FMG will now collaborate to facilitate the construction and operation of a combined hydrogen production and refuelling facility at ATCO’s existing facility in Jandakot, Perth, with the possibility of wider deployment across the state.

The initial refuelling facility will provide ATCO, Fortescue and agreed third parties with the opportunity to refuel vehicles capable of utilising hydrogen as the primary fuel source, Atco says. This includes a fleet of Toyota Mirai fuel cell electric vehicles that have been made available by Toyota Motor Corp Australia.

“The project will serve as a showcase for hydrogen mobility in the state and support the transition to the next generation of zero-emission transport,” ATCO said.

ATCO’s Managing Director in Australia, Pat Creaghan, said ATCO is committed to expediting the global transition to a net-zero emissions balance in the future and sees a significant opportunity for hydrogen to play a role in that future.

“ATCO’s Clean Energy Innovation Hub has been generating and testing the use of renewable hydrogen for more than six months in gas blending and power applications. The hub provides a fantastic base from which to partner with Fortescue to contribute to Western Australia’s burgeoning renewable hydrogen industry.”

Building on the knowledge gained through the development and implementation of this hub, ATCO says it is currently conducting a feasibility study – with A$375,000 ($226,148) in funding from WA’s Renewable Hydrogen Fund – into the development of a commercial scale renewable hydrogen production plant.

Fortescue Chief Executive Officer, Elizabeth Gaines, said the miner was committed to working with other organisations to position Australia as a leader in the global hydrogen economy.

“As the world moves towards a lower carbon future, hydrogen has the potential to play a key role in the future energy mix and we want to ensure we remain at the forefront of Australia’s renewable hydrogen industry,” Gaines said.

“Identifying and establishing partnerships is critical to unlocking the future potential of hydrogen and we look forward to working with ATCO to capitalise on the economic opportunities associated with hydrogen and support the development of a competitive hydrogen industry.”

ATCO and Fortescue have sought funding under the State Government’s Renewable Hydrogen Fund to support the development of this infrastructure, and are awaiting the outcome of this submission.

Anglo, BHP, FMG and Hatch back green hydrogen developments

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Anglo American, BHP, Fortescue Metals and Hatch say they have formed a Green Hydrogen Consortium to look at ways of using green sources of hydrogen to accelerate decarbonisation within their operations globally.

Primarily, the consortium aims to collectively help to eliminate the obstacles to the adoption of green hydrogen technologies and encourage innovative application, they said.

“The goal is to identify opportunities to develop green hydrogen technologies for the resources sector and other heavy industries, and provide a mechanism for suppliers and operators to contribute to and engage with these development activities,” the four firms said.

The member companies of the Green Hydrogen Consortium stated that they are technology agnostic and are considering a range of options to progress decarbonisation of their operational greenhouse gas emissions, according to a fact sheet issued by the consortium.

“Given the range of applications for green hydrogen and the cost challenges associated with it, the consortium was formed to work together to seek to de-risk its application and enable acceleration of cost reductions,” the partners said. The consortium is expected to be in place for three years.

While Anglo American is currently developing the world’s largest hydrogen-powered mine haul truck for testing at the Mogalakwena platinum group metals site, in South Africa, Fortescue already has a partnership in place with CSIRO, Australia’s national science agency, on the development of hydrogen technologies.

Some of the proposed activities of the consortium include undertaking research, technology and supply chain development, and piloting green hydrogen technologies to seek to de-risk and accelerate the technologies, the partners said.

“The companies involved in the consortium are committed to reducing their respective operational greenhouse gas emissions and to working collaboratively with others – including customers and suppliers – to find technological or other innovative solutions for the emissions associated with the use of their products and in their supply chains,” they said.

Hatch, the lone engineering company in the consortium, has been appointed as the Project Management and Governance Facilitator of the consortium.

Plug Power on the charge for world’s largest hydrogen-powered mining truck

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Plug Power Inc is to provide a custom refuelling system for the world’s largest hydrogen-powered mine haul truck, set to begin operating next year as part of a project between Anglo American and ENGIE.

Plug Power, a leading provider of hydrogen engines and fuelling solutions enabling e-mobility, was selected by ENGIE following the signing of a global partnership agreement between the two announced in September.

ENGIE is working with Anglo American to develop a renewable hydrogen production and refuelling solution to support a new hydrogen-powered haul truck that, according to Anglo, will have ‘first motion’ next year, followed by a testing and validation program at the Mogalakwena platinum group metals mine (pictured. Credit: Anglo American), in South Africa. After this point, the trucks are expected to be deployed at other Anglo American operations. All of this is part of the miner’s FutureSmart Mining program.

To support the refuelling project, Plug Power has been tasked with building a full compression, storage, and dispensing system to service the new hydrogen-powered vehicle. Plug Power’s system will be the first of its kind, and the largest refuelling system built by the company to-date, with an expected output of 1,000 kg/d, it said.

Andy Marsh, CEO of Plug Power, said: “The incredible scope of this project reaffirms not only Plug Power’s commitment to facilitating the global adoption of hydrogen as a clean energy source, but also our position as the world leader in hydrogen refuelling.

“Our partnership with ENGIE is opening the door to exciting new opportunities outside of both the US, and the material handling market, where we have continuously demonstrated our expertise.”

Victoria brown coal to hydrogen pilot project takes off

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Construction has started on a A$500 million ($353 million) pilot project looking at the feasibility of turning brown coal from the Latrobe Valley, in Victoria, Australia, into hydrogen for liquefaction and export to Japan.

Works have begun on liquefaction facilities linked to the Hydrogen Energy Supply Chain (HESC) project at Port Hastings, Victoria, which the government says has the potential to create A$2 billion in exports for Australia.

On the other side of Australia, Fortescue Metals recently partnered with CSIRO on hydrogen technologies to support the development of new industries, create jobs and pave the way for low emissions export opportunities for the country.

Hydrogen production operations for the pilot phase of HSEC have been established at the AGL Loy Yang mine, with operations leveraging existing coal gasification technologies adapted specifically for Victorian brown coal. Hydrogen will then be transported to a liquefaction and loading terminal at the Port of Hastings Victoria, Australia.

“Once converted to liquid, hydrogen will be shipped to Japan using a world-first, innovative liquefied hydrogen carrier, purpose built for hydrogen transport,” the HESC said.

Australia’s Minister for Resources and Northern Australia, Matt Canavan, said today’s sod turn symbolised new job and investment opportunities for the region, as well as the nation.

“Australia is well placed to become a global leader in hydrogen production and this pilot project is a crucial step towards making this vision a reality. The Australian and Victorian Governments have committed A$50 million each to the A$500 million project, which is also supported by the Japanese Government and Japanese industry,” he said.

“This project promises to be of huge benefit to both nations and particularly the state of Victoria, which has the opportunity to develop an alternative and value-adding use of its abundant brown coal reserves in the Latrobe Valley.

“The use of hydrogen is part of Japan’s vision of a clean energy future and any emissions from the pilot project will be fully offset, with commercial scale operations required to use carbon capture and storage to ensure a low emission source of hydrogen.”

Minister for Trade, Tourism and Investment, Simon Birmingham, said the project was the first of its kind in Australia and was built on the strong and long-standing trade partnership between Australia and Japan.

“This pilot project is the first step in creating a commercial scale hydrogen supply chain which could lead to billions of dollars in export earnings for Australia and help Japan meet its strategic energy targets for 2030 and beyond,” he said.

“As global demand for hydrogen continues to grow, strategic investments such as this one have the potential to turn Australia into a major global exporter of hydrogen, particularly to countries such as Japan and South Korea.

“Australia has long been a reliable supplier of energy needs and there is no doubt that we are uniquely placed to continue to meet those global needs by becoming a leader in hydrogen energy. Future commercial scale operations in the Latrobe Valley and around the country will help transform Australia into a hydrogen powerhouse, delivering significant economic benefits and thousands of extra jobs for Australians.”

For funding purposes, the pilot phase is split into different delivery portions – a Japanese funded portion and an Australia funded portion.

The Australia funded portion is coordinated by Hydrogen Engineering Australia (HEA), a consortium comprised of project partners including Kawasaki Heavy Industries (KHI), J-POWER, Iwatani Corporation, Marubeni Corporation and AGL. This portion involves refining the hydrogen gas in the Latrobe Valley, transporting it to the Port of Hastings, converting it to liquid and then loading it onto the marine carrier.

The Japan funded portion of the HESC pilot phase is coordinated by the CO2-Free Hydrogen Supply Chain Technology Association (HySTRA), acting on behalf of KHI, J-POWER, Iwatani Corporation and Shell. The Japanese funded portion includes converting brown coal to gas in the Latrobe Valley, transporting liquid hydrogen by sea and then unloading it in Japan.

The HSEC project will be developed in two phases:

  • The pilot phase will demonstrate a fully integrated supply chain between Australia and Japan over one year by 2021;
  • The decision to proceed to a commercial phase will be made in the 2020s with operations targeted in the 2030s, depending on the successful completion of the pilot phase, regulatory approvals, social licence to operate and hydrogen demand.

thyssenkrupp looks to go ‘climate neutral’ by 2050

Environmental, Metallurgy, Mining equipment, Power supply for mines, Steel and iron ore, Sustainable mining, , , , , , , ,

thyssenkrupp has set some ambitious greenhouse gas emission goals as it looks to fall in line with the 2015 Paris Climate Agreement.

The group aims to cut 30% of its emissions from production and outsourced energy by 2030, and become “climate neutral” by 2050, it said.

thyssenkrupp CEO, Guido Kerkhoff, said: “The threats posed by climate change affect us all. As an industrial company with operations around the globe, we are in a particularly good position to reduce greenhouse gas emissions through sustainable products and processes. We take this responsibility very seriously and have received several awards for this in recent years. Now, we are setting ourselves clear targets for 2030 and 2050 as the next logical step.”

In February, thyssenkrupp was named as a global leader in climate protection for the third year in a row by the non-governmental organisation, CDP, which assesses whether companies have formulated a coherent strategy on how to further improve their own environmental performance as well as that of customers and suppliers. The company, once again, achieved the highest score possible and was placed on CDP’s global ‘A List’, it said.

The targets now announced take in thyssenkrupp’s own production operations, the energy it purchases and its products. In steel production, for example, thyssenkrupp is currently pursuing two approaches to reducing CO2 emissions: The Carbon2Chem project, which is expected to be available on an industrial scale before 2030, and the so-called hydrogen route, which should take full effect by 2050 and make the biggest contribution to directly avoiding CO2. Carbon2Chem converts steel mill emission gases, including the CO2 they contain, into valuable chemicals.

thyssenkrupp’s hydrogen route, meanwhile, involves replacing coal with ‘green’ hydrogen as the reducing agent for blast furnaces so that, in the long term, no CO2 is created in the production of steel. These technologies are being funded by the German federal government and the state of North Rhine-Westphalia.

Under its Climate Action Program for Sustainable Solutions, thyssenkrupp will also systematically work to make its products carbon neutral. The group already offers a technology for the cement industry that permits CO2 emissions from the combustion processes to be captured for subsequent storage or processing. In the area of sustainable mobility, thyssenkrupp is working with European partners to produce fuel from biomass. These fuels reduce CO2 emissions by up to 90% compared with conventional fuels, according to thyssenkrupp.

Other key areas include the e-mobility sector, where thyssenkrupp supplies battery production lines and special steels for electric motors. The group is also actively involved in the development of energy storage solutions, for example with electrolysis systems that convert electricity into hydrogen. These storage systems allow a constant supply of electricity from renewables regardless of the weather, thyssenkrupp says.

Dr Donatus Kaufmann, thyssenkrupp Board member responsible for technology, innovation, sustainability, legal and compliance, said: “Our goals are ambitious but achievable. Our strategy for our steel operations alone will cut production-related emissions there by 80% by 2050. But if we are to achieve our climate targets, we need to make significantly more use of renewable energies. Also, there are no internationally harmonised financial incentives for investments in CO2 abatement technologies. These are basic requirements for making a real change.”

Anglo’s O’Neill sets 12-month goal for hydrogen-fuelled trucks

Mining equipment, Power supply for mines, Sustainable mining, , , , , , , ,

During Anglo American’s 2018 sustainability performance presentation this week, Technical Director, Tony O’Neill, said the company was working on an innovative solution to power haul trucks by hydrogen using solar panels.

By oversizing the photovoltaic generation capacity at a site, the company would be able to capture enough hydrogen to potentially power a haul truck.

O’Neill said this was all part of the company’s plan to create a “smart energy mix that allows us to become carbon neutral”.

“That leads us straight to hydrogen,” he said.

The approach the company is working on required a different mindset from O’Neill and his team.

“What some in my team have done is say, ‘OK, we’re not worried about a return. As long as the project washes its face, what does that do?’ And, what does it do, particularly, if you oversize your power consumption enough that you can actually generate hydrogen?”

The decision-making process changes with such a viewpoint, he said.

“All of a sudden, we had enough hydrogen, so we could stick it in our trucks. We looked at the trucks and re-engineered the way they work. Voila, we found we could get 5-10% more out of our trucks,” he said.

And, this line of thinking and re-engineering has allowed O’Neill to make a bold statement:

“Our aim, is to get, hopefully, in the next 12 months, a truck running around using hydrogen.”

Solutions like these could provide energy security, price resilience, reduce greenhouse gas emissions, move Anglo to a “hydrogen economy”, and help it develop the next generation mining vehicles, the company said.