Amp Energy, a Carlyle portfolio company, has signed an agreement with Iron Road Ltd. to develop green hydrogen at scale on the Cape Hardy Port Precinct in South Australia.
Amp is one of the biggest hydrogen developers in Australia, and it is currently working on a project to develop 20GW of electrolyzer capacity across three precincts. The company is following a model where it owns and optimizes feedstock generation, transmission, processing, and export assets to progress the project.
Iron Road is the 100% owner of the Central Eyre Iron Project (CEIP), an advanced, long-life iron ore mining, beneficiation and infrastructure development opportunity on the Eyre Peninsula, South Australia. It holds the country’s largest magnetite ore reserve.
Via the tie-up with Amp, the CEIP project can leverage the proximity of large-scale renewable energy generation and transmission to achieve a competitive operating cost structure for high-quality steelmaking feedstock.
The Cape Hardy project has a strategic geographic location and support from the South Australia government. The site has direct access to high-voltage power through existing transmission infrastructure, and the deep waters of the port will make hydrogen transport easier. The Australian Government has invested AUD25 million ($16.6 million) in port infrastructure development.
Amp Energy believes that these factors will help produce green hydrogen at competitive global prices and enable South Australia to meet its green hydrogen goals.
Source: Wind Power Monthly
Image Source: Iron Road