Stanwell Hydrogen Project Feasibility Study October 2020 The feasibility study received funding from ARENA as part of ARENA’s Advancing Renewables Program. The views expressed herein are not necessarily the views of the Australian Government, and the Australian Government does not accept responsibility for any information or advice contained herein. For further information contact [email protected] Table of contents Executive Summary ........................................................................................................................................ 6 a. Pre-feasibility study ............................................................................................................................ 6 b. Feasibility study approach ................................................................................................................. 6 c. Commercial and market .................................................................................................................... 7 d. Technical solution .............................................................................................................................. 7 e. Finance and Funding ......................................................................................................................... 7 Funding sources ..................................................................................................................................... 7 Funding structure ................................................................................................................................... 8 Funding arrangements ........................................................................................................................... 8 Financial assessment ............................................................................................................................ 8 f. Additional analysis ............................................................................................................................. 8 Risk management .................................................................................................................................. 8 g. Commercialisation pathway .............................................................................................................. 9 h. Conclusions........................................................................................................................................ 9 Study conclusions – demonstration project .......................................................................................... 9 Study conclusions – commercialisation pathway.................................................................................. 9 i. Next steps ........................................................................................................................................ 10 1. Project context and overview .................................................................................................................. 11 a. Policy and market environment ....................................................................................................... 11 b. Role of Stanwell – project proponent .............................................................................................. 12 c. Involvement of ARENA .................................................................................................................... 12 2. Pre-feasibility study overview .................................................................................................................. 13 a. Assessment framework ................................................................................................................... 13 Technical viability ................................................................................................................................. 13 Commercial viability ............................................................................................................................. 13 Strategic viability .................................................................................................................................. 13 b. Value chain pathways ...................................................................................................................... 13 Power-to-Ammonia: ............................................................................................................................. 13 Power-to-Gas: ...................................................................................................................................... 13 Power–to-Power: .................................................................................................................................. 13 c. Pre-feasibility study conclusions ..................................................................................................... 14 Technical .............................................................................................................................................. 14 Commercial .......................................................................................................................................... 14 Strategic ............................................................................................................................................... 15 Overall conclusion ................................................................................................................................ 15 3. Feasibility study approach ...................................................................................................................... 16 a. Assessment Framework .................................................................................................................. 16 Technical .............................................................................................................................................. 16 Commercial and market ....................................................................................................................... 16 Financial ............................................................................................................................................... 16 Risk and opportunity analysis, management and mitigation .............................................................. 17 Regulatory approval ............................................................................................................................. 17 Stakeholder/Shareholder engagement ............................................................................................... 17 Social and economic impact assessment ........................................................................................... 17 Commercialisation pathway ................................................................................................................. 17 4. Identification of Reference Project .......................................................................................................... 18 a. Initial options filtering ....................................................................................................................... 18 b. Reference project description .......................................................................................................... 18 5. Project Objectives ................................................................................................................................... 21 6. Commercial and market .......................................................................................................................... 22 a. Potential domestic offtake partners ................................................................................................. 22 b. Potential international offtake partners ........................................................................................... 22 7. Technical stream ..................................................................................................................................... 23 a. Project location ................................................................................................................................ 23 b. Technology supplier/s ...................................................................................................................... 24 Key performance metrics ..................................................................................................................... 25 c. Capital cost estimates...................................................................................................................... 26 i Stanwell Hydrogen Project Feasibility Study d. Requirement for Front End Engineering and Design (FEED) ........................................................ 27 e. Project schedule .............................................................................................................................. 27 f. Services and connections ............................................................................................................... 27 Electricity supply................................................................................................................................... 27 Water supply ........................................................................................................................................ 29 Stormwater