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Amp finalises contracts for a 10 GW green hydrogen project in South Australia

The Australian energy company Amp Energy has finalised all required commercial agreements for the development of the Cape Hardy Advanced Fuels Precinct, a proposed green hydrogen, green ammonia and advanced fuel project at Cape Hardy in South Australia. The project would include 1 GW of planned electrolyser capacity, which could later be ramped up to 10 GW, and an advanced fuels export terminal.

Amp Energy aims to complete pre-FEED studies for the first 1 GW electrolyser phase over the next 9 months. FEED scoping and contracting is currently underway and the FEED contract should be awarded in late 2024 or early 2025. The project could produce green ammonia, liquid hydrogen, methanol, and sustainable aviation fuel, to supply the Australian market as well as export markets.

In 2023, the Government opened a consultation for a Hydrogen and Renewable Energy Act to accelerate investment in large-scale projects in South Australia. Its Hydrogen Headstart programme aims to achieve a target of 1 GW of electrolyser capacity by 2030. Earlier in May 2024, the Australian government announced new measures to support hydrogen production in its 2024-2025 budget, including an AUD 2bn (US$1.3bn) expansion to the Hydrogen Headstart programme and AUD 6.7bn (US$4.5bn) over 10 years for a Hydrogen Production Tax Incentive for renewable hydrogen produced from 2027.