Sun Brilliance has announced that it has completed the project design for 310,000 TPA green hydrogen and 800,000 TPA green ammonia plants to be set up at Karratha, Western Australia with an estimated project cost of A$10.65 billion. The Green Hydrogen and Ammonia project will be implemented in three phases and powered by solar and wind energy.
"TSK, Spain, the lead EPC Contractor has completed the design work as well as developing the financial model for the project. The hydrogen/ammonia project and production costs have now been confirmed, stated Dr Dilawar Singh, Managing Director, and CEO of Sun Brilliance.
TSK, in partnership with Perth-based engineering and construction company Clough, is exploring opportunities to implement the project that maximizes local engagement. TSK will be responsible for the high-level design, procurement, and overall supervision while Clough would provide the wrap engineering and construct the Hydrogen and Ammonia plants. Sub-contract opportunities for the installation of the solar and wind farm may go to EPC Solar, Monford Group, and Boya Energy.
Sun Brilliance will export green ammonia to South Korea, Japan, and China after the completion of Stage 1 of Phase 1 of the project in 2025.
Dr Singh stated that "we are excited with the developments as there are so many hydrogen projects announced Australia-wide but none of them has yet reached the design stage. While others are still wondering about the production cost of Green Hydrogen or Ammonia, we have firmed our target at providing the cost of Green Hydrogen at below $2 per kg to fulfill the objective of the Federal Government."
Sun Brilliance has applied for federal government grants, as without government involvement none of the Green Hydrogen/Ammonia projects will be commercially viable and able to compete with the grey or blue hydrogen projects. The outcome of the grant applications is awaited added Dr Singh.
TSK is a well-known and reputable EPC company that operates in 57 countries and has employed more than 1,000 staff. TSK will also operate and maintain the plants.
John Galvin, Clough Executive Vice President, Australia & Asia Pacific said "Clough is pleased to be exploring opportunities for green hydrogen and ammonia in the Northwest of Western Australia. We are excited to be working closely to help another client achieve FID, particularly on this large-scale green project which is aimed directly at building Australia's clean energy future."
Eduardo Tamargo Zaragozi, Hydrogen Solutions, Technical and Business Manager of TSK said "TSK is engaged in this project for the last one year and this will be the first green hydrogen project to work for us outside of Spain. We are bringing world-class PEM electrolyzing technology to split seawater into hydrogen and oxygen gases efficiently and cost-effectively. The size of the project is reasonably big which will lead to achieving commercial viability. We have also developed a design so that the ammonia plant works efficiently 24 hours a day from renewable energy sources."
"We are pleased the WA Government is very supportive of renewable hydrogen projects in Western Australia, as outlined in the WA Renewable Hydrogen Strategy, and wants to see the commencement of projects as early as possible. Our project will create more than 9,000 new job opportunities and the release of 2.5 million tonnes of oxygen from the plant into the atmosphere which will help in improving the local and global environments," added Dr Singh.
Several overseas investors have shown interest in the project and Sun Brilliance is currently evaluating the investment offers. Further, Sun Brilliance is in discussions with the Northern Australia Infrastructure Facility (NAIF) and Clean Energy Finance Corporation (CEFC) for the debt finance.