Keppel partners Temasek, Incitec Pivot to explore ammonia supply from Australia; for use as direct fuel, hydrogen carrier

Keppel Infrastructure said it was looking to deepen its involvement in renewables and end-to-end low-carbon solutions.
Keppel Infrastructure said it was looking to deepen its involvement in renewables and end-to-end low-carbon solutions.ST PHOTO: KUA CHEE SIONG

SINGAPORE (THE BUSINESS TIMES) - Keppel Infrastructure - through its wholly owned subsidiary Keppel New Energy - has signed a memorandum of understanding (MOU) with Temasek and Australia's Incitec Pivot, a fertiliser manufacturer, to look into producing green ammonia in Australia for export globally.

Green ammonia is ammonia produced from 100 per cent renewable energy feedstocks and carbon-free processes.

The ammonia may be used as a direct fuel in green energy generation, or reprocessed to produce hydrogen for fuel feedstock, the companies said in a joint statement on Friday (Nov 5).

The ammonia can also replace bunker fuels to decarbonise the global maritime industry, they added.

The 3 parties are looking at producing the ammonia in Queensland and New South Wales, and said they will work closely with the local governments on essential infrastructure, licences and approvals.

Ms Cindy Lim, chief executive of Keppel Infrastructure, said that the collaboration will "catalyse Keppel Infrastructure's development efforts in zero-emission solutions and low-carbon energy services in line with Keppel's Vision 2030".

Keppel Infrastructure, a wholly owned subsidiary of mainboard-listed Keppel Corporation, said it was looking to deepen its involvement in renewables and end-to-end low-carbon solutions, which include green electricity importation, hydrogen and carbon capture, utilisation, and storage.

Under the MOU, Incitec Pivot, an ASX 100 company, will contribute its expertise in ammonia production.

It will also provide its land on Kooragang Island in the Port of Newcastle, New South Wales, which its managing director and CEO Jeanne Johns said has "the advantage of being nominated by the Australian government as a location for hydrogen hub development", as part of Australia's national hydrogen strategy.

Meanwhile, Temasek will fund part of the feasibility study.

Mr Frederick Teo, managing director of sustainable solutions at Temasek, said: "Adding a carbon-free fuel to the market will enable more companies to grow in a sustainable manner and potentially open new business opportunities as well."

Keppel said it does not expect the development will have any material impact on its earnings per share and net tangible asset per share for its current financial year.