Queensland gas-fired ammonia plant to switch to $28 million of renewables

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A $28 million (USD 18.9 million) hybrid renewable energy system comprising solar and battery energy storage is to replace gas-fired generation at the Incitec Pivot Fertilisers Phosphate Hill plant, 1,800 km northwest of Brisbane and aided by the Australian government’s Powering the Regions Fund, which has as one of its key mandates, to decarbonise existing industries.

Incitec manufactures ammonium phosphate fertilisers adjacent to an open cut phosphate mine inland in northern Queensland.

Announced 12 July 2024, the funding for Incitec was included in a $91 million package targeting six companies, in an effort to cut more than a million tonnes of pollution annually.

The funds included $3 million for a partial electrification of Victorian oil refinery, Viva Energy Refining, $5.4 million for improved energy efficiency at the Boyne Smelters Queensland aluminium smelter and $7.5 million to CSBP Kwinana sodium cyanide plant for a new low emissions waste gas incinerator.

Dyno Nobel Asia Pacific, also in Queensland received $9.8 million and the largest recipient was underground coal mine in the Bowen Basin to help cut methane emissions, with $37.2 million.

Federal Minister for Climate Change and Energy Chris Bowen said the funds will help the traditionally energy intensive and hard to abate industries to drive down their emissions.

The Australian Conservation Foundation (ACF) National Climate Policy Advisor Annika Reynolds said the organisation welcomed government investment in renewable energy systems that displace gas from industrial processes.

“A future made in Australia starts with switching the fuel sources for existing heavy industries and helping big power users like aluminium smelters use energy more efficiently,” Reynolds said.

“We are, however, disappointed by the government’s decision to provide one of these grants to the Kestrel underground coal mine in the Bowen Basin.”

The $1.9 billion Powering The Regions Fund forms part of Powering Australia, which is the government plan for the country to become a renewable energy superpower and meet emissions targets of 43% below 2005 levels by 2030 and net zero emissions by 2050.

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