Canada-based Amp Energy, a global energy transition development platform, has signed an agreement with Australian iron ore exploration and mining company Iron Road Ltd. to develop green hydrogen at scale on the Cape Hardy Port precinct.
Cape Hardy is located on the east coast of Eyre Peninsula, South Australia, approximately 7 kilometres south of Port Neill. It comprises 1,200ha of undeveloped coastal land, wholly owned by Iron Road which aims to develop the area into a world-class green hydrogen and industrial port precinct with multi-commodity capability.
Following a three-month competitive offer-to-bid process, Iron Road announced that Amp Energy has been selected as the lead developer for the Cape Hardy green hydrogen project and the companies executed a strategic framework agreement and commenced a nine-month exclusivity period during which a detailed project schedule and scope of work will be developed.
Iron Road CEO Larry Ingle said: “We are delighted to be working exclusively with Amp for the next nine months, and beyond, on a green energy production and export development opportunity of national significance. This important milestone further validates Cape Hardy as South Australia’s pre-eminent hydrogen export hub of scale. Our competitive offer-to-bid process was carefully designed to screen the most capable and motivated developer looking to prioritise and advance the project quickly and judiciously.”
Amp said it was drawn to the Cape Hardy project due to its strategic geographic location and strong support from the South Australia Government. The Cape Hardy site has direct access to high-voltage power through existing transmission infrastructure as well as a deep-water port that will facilitate the transportation of the hydrogen product, the company explained.
Furthermore, both the Traditional Owners of the land (the Barngala people) and the Eyre Peninsula landowners have strong relationships with the project, and the Australian Government has already shown firm support through its earlier announcement of $25 million for further port infrastructure development. These factors will support the project to produce green hydrogen at competitive global prices and help South Australia meet its green hydrogen goals, Amp stated.
The company intends to develop and build up to 5 GW of electrolyser capacity over the next decade in the precinct, delivering over 5 million tons per annum (mtpa) of green ammonia, which is expected to establish South Australia as a global leader in the production of green hydrogen and ammonia. At this scale, 4,800 direct and indirect construction jobs and 250 direct and indirect operations jobs are expected to be created, Amp added.
“Our background of developing large-scale upstream power systems globally positions Amp for the emerging opportunity of green hydrogen and provides industrial synergies” , commented Paul Ezekiel , Co-Founder and CIO of Amp. “The development of strategically located, transmission-connected green hydrogen and ammonia facilities at select locations such as Cape Hardy in South Australia is critical to our continued global growth and long-term strategy.”
The South Australia Government is also supportive of the Cape Hardy Precinct: “South Australia’s world-leading renewable energy reputation continues to strengthen. The Cape Hardy precinct speaks to our state’s hydrogen production capabilities. As a leading global hydrogen energy developer and asset owner, we welcome Amp’s continued strategic commitment to South Australia. This project complements my government’s commitment to hydrogen, through the Hydrogen Jobs Plan. The Hydrogen opportunity will be transformative for the South Australian economy, delivering energy security – while helping the state decarbonise” , stated The Honourable Peter Malinauskas MP Premier of South Australia.