FFI - Fortescue Future Industries

Fortescue Future Industries (FFI) will commence negotiations on a potential deal to convert one of Australia’s commercial-scale ammonia production facilities to run on renewable hydrogen, potentially rescuing the plant from closure after a study found the conversion technically feasible.

The FFI study found that converting the Gibson Island ammonia facility, operated in Queensland by Incitec Pivot, to using hydrogen produced from renewable energy sources rather than fossil gas would be possible.

The two companies will now undertake an engineering design study that will detail the expected cost, timing and commercial opportunities of the plant conversion, with a final investment decision expected to follow.

Incitec Pivot said that the Brisbane ammonia facility could ultimately use up to 50,000 tonnes of renewable hydrogen a year to produce more than 300,000 tonnes of green ammonia, with Fortescue constructing and operating an onsite electrolysis plant to supply the facility with renewable hydrogen.

That level of green hydrogen production would require electricity supplies from around 1,000MW of wind and solar capacity. It would allow for a complete replacement of the ammonia plant’s existing fossil hydrogen feedstock.

Last month, Incitec Pivot announced that it planned to cease manufacturing operations at the Gibson Island facility as it was unable to secure an affordable supply of fossil gas. However, the prospect of retrofitting the facility with an onsite green hydrogen supply could provide the facility with a much needed lifeline.

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divs4ever said:

Twiggy might be just better buying out IPL , it has been a trail of disappointments since IPL started agreements with CTP

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Fortescue Future Industries, the green energy offshoot of iron ore billionaire Andrew Forrest’s Fortescue Metals, is investigating options to convert a New Zealand oil refinery to become a hub for renewable hydrogen production.

In the latest of a strong of green hydrogen project proposals, FFI says it has signed a memorandum of understanding with Refining NZ to study options for the conversion of parts of the Marsden Point oil refinery.

The Marsden Point oil refinery – located north of Auckland – is slated for closure in April, 2022, but has characteristics, including access to port infrastructure and established export facilities, that would make it well suited for conversion to a green hydrogen facility.

Forrest, the FFI chairman, says the project formed part of the company’s broader plan to convert fossil fuel facilities into renewable hydrogen production sites, s he is also proposing to do at Liddell in NSW.

“Green hydrogen can provide all sorts of advantages to local and export economies – and is the answer our planet needs now,” Forrest said.
“Last week we announced we would look into producing green hydrogen at a retiring coal fired power station in Australia,” he said.
“Yesterday we shared our decision to progress to the next stage converting a grey ammonia plant to green, and today we are looking to kick off something similar at Marsden Point oil refinery in New Zealand.”

Marsden Point refinery has served as New Zealand’s primary supplier of liquid fuels, including petrol, diesel and aviation fuel, but the facility is set to be downsized as Refining NZ focuses on operating the refinery as an import-only facility.

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divs4ever said:

am not so sure the 'established' would be at a premium ( i thought Twiggy was a fairly accomplished deal-maker )

am GUESSING but suspect the ( Gibson Island ) plant is tired and in need of a refurb. ( or more )

current IPL shareholders might give a better opinion of the company , i jumped ship in January 2015

and besides i thought IPL had a second QLD plant out west ( an ideal place for solar-assisted production )

but the Twiggy might be keeping to small steps at the moment ( with a potential financial storm a possible silver lining for the cautious )

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Garpal Gumnut said:

It will be all new hires with different skill-sets.

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Fortescue designs and builds its own electrolyser ahead of green hydrogen push​

FFI would need to invest tens of billions of dollars to build the port, one or more desalination plants, an electrolyser, an ammonia production plant plus a network to connect hundreds of wind turbines across scores of farms

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Fortescue says first 2GW electrolyser factory will be too small, plans more​

Only 15 months ago, Andrew Forrest’s Fortescue Future Industries was putting recruiting ads in the lifts of the Perth towers that house BHP, Rio Tinto and South32.
This week, any of the “tenacious go-getters” that heeded Fortescue’s call to jump ship to the new green hydrogen economy face the possibility they will now lose those jobs as Fortescue looks to slash its workforce to save cash.

Workers in the mining industry are no strangers to mass redundancy events. If commodity prices fall, companies cut costs and shed workers. But that is not what is happening here. While the iron ore price briefly dipped below $US90 a tonne last year, this week it was back above $US120 – still extraordinarily high by long-term standards.
https://www.theaustralian.com.au/business/margin-call
And yes, the skills shortage over the past two years in WA has forced up wages amid a bidding war for skilled workers and even graduates. But Fortescue’s records show it had 1500 more direct employees at the end of June 2022 than it did 12 months before. In that same period, the workforce at its FFI green arm grew by more than 800.

When Fortescue did its last mass round of redundancies in 2015, sacking as many as 700 workers, it was triggered by a tumbling iron ore price, troubling levels of debt, and a major change to on-site rostering arrangements. Forrest was Fortescue’s non-executive chairman at the time and chief executive Nev Power oversaw the cull. Days after it began, Forrest described the cuts as “personally tragic” and ”heartbreaking”.

If there’s any heartbreak this time, it is of Forrest’s own making. He drove the rapid growth of FFI staffing, as the company tried to nail down every possible undeveloped green energy project it could. And, as executive chairman, it is under his watch – and presumably direction – that the latest plan for cost-cutting and redundancies has been developed.

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To be fair, now is probably a natural point for a review of FFI’s staffing levels. FFI chief executive Mark Hutchinson has been in the role since July and has said the company is narrowing its focus to make a final investment decision on five projects this year.

There is also the growing pressure on Fortescue over its spending levels on FFI – which aside from an endless parade of memorandum of understandings and other early stage agreements – is yet to produce much of anything that can be valued by the market.

With the extraordinary leadership exodus over the past two years, it would hardly be surprising if the company’s back end has put on some excess weight as well.

The market will likely welcome any move to cut costs at Fortescue, and particularly at FFI, in the hope it signals a return to spending discipline. But for the workers likely to be made redundant, Forrest’s incessant use of the phrase “Fortescue family” to describe its workforce is likely to ring a trifle hollow this month.

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mullokintyre said:

According to The Australian , the Future is not looking quite so rosy.


Mick

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Sean K said:

Looking forward to the FID on the five green energy projects they're going to fund this year.

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sptrawler said:

This renewable energy project ties in with FFI's electrolyser at Gladstone, Twiggy just changing construction contractors, interesting thing is he owns the new company finishing the build and most of the company they are replacing.

Work shut down on Australia’s biggest wind farm

Contractors and subcontractors working on the $3 billion Clarke Creek facility in central Queensland backed by billionaire Andrew Forrest have been told to “demobilise” from the site.

www.afr.com

Touted as the largest renewables project in the southern hemisphere, the 450-megawatt wind farm – which includes 100 turbines – is being built by Dr Forrest’s private company, Squadron Energy.
ontractors and subcontractors working on the site, 150 kilometres north-west of Rockhampton and 150 kilometres south of Mackay, were told on Wednesday night to stop work and take equipment from the site.
A source with knowledge of the project said the move was related to “a change in strategic direction”, with Squadron Energy taking over as project manager from Windlab.
It is understood there was a clause in the contract that allowed Windlab to be dismissed as project manager without a “just cause”. The purchase of CWP Renewables last year has given Squadron Energy the expertise to take control of construction of the project, which would involve a change in personnel.

The source rejected suggestions the shutdown was related to safety or cultural heritage, saying there would not be a significant delay to the project, which is expected to export power to the grid by 2025.

Still, the move to change contractors mid-project is unusual. One industry source said the call to demobilise was significantly different from a temporary stand-down.
Dr Forrest became one of Australia’s biggest owners of renewable energy assets last year with the aquisition of CWP, giving Squadron massive reach into NSW and adding to renewable assets that already have 2.4 gigawatts of capacity and an Australian development pipeline of 20GW.

Dr Forrest is also a 75 per cent owner of Windlab.
Squadron Energy, Dr Forrest’s private company, bought the Clarke Creek wind farm off Goldwind and Lacour last year.

The Fortescue Metals founder is keen to build a clean energy hub in central Queensland which will also link to the $1 billion electrolyser factory which one of his other companies, Fortescue Future Industries, is building in Gladstone.

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Sean K said:

Ponzi Scheme?

Multiple???

Or, just White Elephant developments....

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sptrawler said:

Wouldn't be the first time that has been used to make money and wont be the last.
Let's be honest FFI could make a ton more money just flipping houses in Sydney, at least the renewable crap is employing people.?
The Govt is probably pouring a lot less money into FFI, than they are into keeping the unemployed happy and housed.

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