Massive Green Hydrogen and Ammonia Initiative Receives Project Extension

Iron Road, the developer of the Central Eyre Iron Project (CEIP) focusing on iron ore mining and infrastructure development, has prolonged its Strategic Framework Agreement with Amp Energy. This extension aims to facilitate the joint endeavor to establish an extensive green hydrogen and ammonia project in conjunction with Iron Road's operations at Cape Hardy in South Australia. The agreement's exclusivity period has been extended by three months, until April 12, 2024, to allow ample time for the finalization and execution of transaction documents for the proposed Cape Hardy project.

Iron Road's CEIP is positioned on the Eyre Peninsula, encompassing long-term prospects for iron ore mining, beneficiation, and infrastructure development, including an export port at Cape Hardy. In reciprocation for the extension, Amp Energy has agreed to forgo its entitlement to a refund of a $500,000 exclusivity fee previously paid. Amp Energy, a company envisioning up to 5 GW of electrolyser capacity over the next decade, plans to deliver over five million tonnes annually of green ammonia as part of the Cape Hardy project. The subsequent stage of the project aims to double this capacity to an impressive 10 GW.

Exporting ammonia through a bulk port at Cape Hardy, the project is anticipated to generate substantial employment opportunities, with more than 4,800 Direct and Indirect Construction jobs and 250 Direct and Indirect Operations Jobs expected to be created. The Australian Government has already signaled its support by allocating $25 million for further development of port infrastructure. In a statement, Amp Energy highlighted that ongoing discussions with Iron Road contemplate the establishment of an associated industrial manufacturing precinct, focusing on the green hydrogen and minerals value chain.

Amp Energy's hydrogen development business is actively assessing four global sites, strategically located adjacent to renewable energy projects. The emphasis is particularly on Australia and South Australia, aligning with the broader vision of fostering a sustainable industrial ecosystem. The collaboration between Iron Road and Amp Energy signifies a significant stride towards realizing this vision, with a green hydrogen and ammonia project at the forefront of their joint efforts.

The extension of the Strategic Framework Agreement underscores the commitment of both companies to the successful development and execution of the Cape Hardy project. The additional three months provide a window for detailed negotiations and the crafting of comprehensive transaction documents, ensuring that the partnership is well-structured and poised for success. This extension also reflects the complexity and magnitude of the proposed project, necessitating thorough preparations and due diligence.

As the project progresses, the scale of Amp Energy's ambitions becomes apparent, with plans to deploy substantial electrolyser capacity and contribute significantly to the production of green ammonia. The dual-stage approach, involving the gradual increase of electrolyser capacity, demonstrates a phased strategy aimed at optimizing efficiency and meeting escalating demands for green ammonia in the market.