Sale plans put end to Fortescue green hydrogen project

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Australian mining and energy giant Fortescue’s plan to develop a 550 MW green hydrogen production facility at Gibson Island is on the rocks with project partner Incitec Pivot announcing it intends to sell the Brisbane site.

Fortescue in late 2022 partnered with fertiliser and explosives group Incitec to develop green hydrogen and green ammonia facilities at the Gibson Island site, which houses an ammonia production facility that was closed in January 2023.

Incitec has since then been using the site as a distribution centre but has now announced it will sell the site as part of its shift from fertiliser production to enhancing its explosives business.

“We have confirmed the closure of the Gibson Island primary distribution centre (PDC) and will be transitioning to a third-party facility operated by Qube at the Port of Brisbane,” Incitec Chief Executive Officer Mauro Neves said during the company’s annual financial disclosure.

“The decision to relocate the PDC allows us to progress our plans to sell our real estate holdings at Gibson Island.”

Incitec’s decision almost certainly marks the end of plans for Fortescue to build a green hydrogen and ammonia project on the 57-hectare site.

Fortescue had already delayed the project as part of a broader tempering of its green hydrogen ambitions.

The proposal included the construction of a 550 MW electrolysis plant capable of producing up to 70,000 tonnes of green hydrogen annually, which would then be converted into green ammonia for Australian and export markets.

The Gibson Island green hydrogen and ammonia project received $13.66 million (USD 8.83 million) from the Australian Renewable Energy Agency (ARENA) to help finance a $38 million front-end engineering and design study.

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