AFRY Secures Key Role in Australian Green Hydrogen Project

• AFRY AB drives innovation in Australia's green energy frontier with a groundbreaking hydrogen and ammonia project, set to produce nearly one million tonnes annually at Nhulunbuy.

Swedish consultancy AFRY AB has been appointed as the owner's engineer for a major green hydrogen and ammonia production project in Northern Territory, Australia, awarded by Allied Green Ammonia Pty Ltd. The project, to be based in Nhulunbuy at Gove Peninsula, involves the installation of a 3-GW electrolyser aimed at producing nearly one million tonnes of green ammonia annually. To meet power demands, approximately 4.75 GW of solar photovoltaic arrays, combined with battery storage systems, will be deployed.

AFRY’s responsibilities will encompass designing a sustainable renewable power and distribution system for the facility. The Gove project aims to generate 486 tonnes of green hydrogen per day, reaching an overall annual output of 960,000 tonnes of green ammonia. Recently, Allied Green engaged Affinity Capital Group for strategic financial advising as it seeks to raise around USD 6.5 billion for project funding, while construction firm Nacap has been selected to build the hydrogen pipeline.

What are the key components and financial plans for the Gove green ammonia project?

Key Components and Financial Plans for the Gove Green Ammonia Project

Key Components:

Electrolyser Capacity:

• Installation of a 3-GW electrolyser designed to produce approximately 486 tonnes of green hydrogen per day.
• Estimated annual production of green ammonia is around 960,000 tonnes.

Solar Energy Infrastructure:

• Deployment of approximately 4.75 GW of solar photovoltaic arrays to provide the necessary energy for hydrogen production.
• Integrated energy generation system with the potential to significantly reduce carbon emissions.

Battery Storage Systems:

• Inclusion of advanced battery storage solutions to ensure a stable and reliable energy supply, especially during periods of low sunlight.

Hydrogen Pipeline:

• Construction of a dedicated hydrogen pipeline by Nacap, facilitating efficient transportation of produced hydrogen to various distribution points or processing facilities.

Sustainable Power and Distribution Design:

• AFRY AB tasked with creating a long-term sustainable renewable power and distribution system, ensuring efficiency and viability of operations.

Financial Plans:

Total Funding Requirement:

• The project aims to raise approximately USD 6.5 billion for comprehensive development, infrastructure, and operational costs.

Engagement of Financial Advisor:

• Affinity Capital Group appointed to provide strategic financial advisory services to help structure and secure funding.

Investment Structure:

• Consideration of a mix of equity and debt financing to meet the funding requirements, potentially including public-private partnerships and international investment.

Incentives and Grants:

• Exploration of government incentives, subsidies, or grants designed to support renewable energy projects, which could enhance financial viability.

Revenue Models:

• Development of potential revenue streams such as long-term off-take agreements with industrial users of green ammonia.
• Pricing strategies could include fixed contracts or variable pricing based on market demand.

Risk Management:

• Implementation of risk management frameworks to mitigate financial exposure due to market fluctuations in hydrogen and ammonia pricing.
• Consideration of insurance products to protect against operational and development risks.

Each of these components and financial strategies will play a crucial role in the successful implementation and sustainability of the Gove green ammonia project, ultimately contributing to the transition towards a greener economy.