Project Highlights
Victorian Hydrogen & Ammonia Industries Limited (VHI) is developing one of the lowest cost blue hydrogen projects globally in the Latrobe Valley, Victoria with half the production already contracted to be converted into value added urea for which it has secured a 25 year take or pay contract worth over A$5 billion for the initial term.
Annual production:
- Hydrogen – 81,000 tonnes
- Ammonia – 300,000 tonnes
- Urea – 520,000 tonnes
Urea fertiliser consumption in Australia is approximately 2 mtpa which is mostly imported – only one operating facility in Australia.
Significant social, economic and environmental outcomes for the community.
‘Take or Pay’ Binding Offtake Agreement secured with Ameropa AG – world’s largest trader of urea – covering first 25 years of production for total urea produced.
Offtake discussions commenced for balance of hydrogen production.
Build-Own-Operate (BOO) Agreement proposed with Air Products & Chemicals (APD.NYSE, US$60 bn market cap) for all gasification technologies resulting in estimated A$581 project capex contribution.
Strong Board and Management team who have delivered multi-billion dollar projects and significant shareholder value.
Providing low cost, long term hydrogen and urea fertiliser to supply eastern Australian industry and agriculture.
Social & Economic Benefits
The Project will generate significant employment for the region:
- ~ 1,000 jobs during construction;
- ~ 160 permanent jobs; and
- ~ 480 indirect jobs.
- Continues economic utilisation of world class lignitic coal resources. Coal-fired power stations will ultimately cease operation, hydrogen and net zero derivative production is a sustainable alternative.
- Substantial contributor to federal tax and state royalties.
- Fully import replacement with a superior quality product.
- Opportunities for expansion and creation of a world-class, net zero emissions hydrogen and ammonia hub in Latrobe Valley.
“We commit to using our brown coal resources in a manner that maximises its long term value for Victorians and is consistent with our economic, social and environmental priorities, while promoting jobs and investment.”
– Statement of Future Uses of Brown Coal, Victorian State Government
