Keppel, Temasek, Incitec Pivot enter MOU to study producing green ammonia in Australia

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Keppel Infrastructure Holdings, Australia’s Incitec Pivot and Singapore state-owned investment company Temasek Holdings have entered a memorandum of understanding (MOU) to study the feasibility of producing green ammonia in Australia for export to meet demand for carbon-free energy.

Green ammonia, which is ammonia produced using only renewable energy and carbon-free processes, can be used as a direct feedstock in green energy generation or as a hydrogen carrier for green hydrogen services, the companies said in a filing to SGX Friday.

The three companies will work with the Queensland and New South Wales’ governments to study the feasibility of infrastructure, licenses and approvals, the filing said.

Cindy Lim, CEO of Keppel Infrastructure, said green ammonia, as a potential source of clean fuel, can contribute to deep decarbonisation in power and hard-to-abate sectors.

“Keppel is pleased to partner with Incitec Pivot and Temasek to explore and identify feasible pathways to develop secure, scalable and cost competitive green ammonia supply chains from production, transportation and storage to distribution and end-uses in the global and regional markets,” she said in the statement.

“Keppel Infrastructure possesses domain knowledge and operating expertise in the different aspects of the sustainable energy landscape and is uniquely placed to lead in this collaboration whilst adopting a whole-ecosystem approach. This will also catalyse Keppel Infrastructure’s
development efforts in zero-emission solutions and low-carbon energy services,” Lim added.

The statement said the deal would also support Australia’s National Hydrogen Strategy, which set seven clean hydrogen hubs in Australia, including in Queensland and NSW, where Incitec Pivot has existing ammonia asset and brownfield sites.

Incitec Pivot Managing Director and CEO Jeanne Johns said her company’s Kooragang Island site and a potential greenfield site in Gladstone have been nominated by the government as locations for hydrogen hub development.

“We are looking forward to combining our leading ammonia manufacturing and handling expertise here in Australia with Keppel’s large-scale energy and infrastructure development capabilities, and Temasek’s experience in sustainable solutions,” she said in the statement.

The deal will be via Keppel Infrastructure’s wholly owned subsidiary Keppel New Energy.