Canadian energy giant selected to deliver South Australian green hydrogen project in Cape Hardy

Canada-headquartered energy company Amp Energy has been picked as the lead developer of Iron Road’s (ASX: IRD) green hydrogen project at Cape Hardy, South Australia which is set to position the state as a global leader in the production of the energy source.

To be situated at Cape Hardy on the east coast of South Australia’s Eyre Peninsula, the Cape Hardy project is expected to be able to produce over 5 million tonnes per annum of green ammonia.

The multinational was selected by Iron Road Limited - an iron ore miner on the Eyre Peninsula - to deliver the ASX-listed company’s project that will create 4,800 construction jobs and 250 operational jobs once the facility is up and running.

According to Iron Road, construction of the project is expected to commence in the fourth quarter of FY25 and should be finished sometime in FY28. Once complete, Amp will have received $24 million from the listed miner, paid in tranches once specific milestones are hit.

Iron Road CEO Larry Ingle said he was delighted to work with Amp Energy which is backed by global investment giant The Carlyle Group.

“We are delighted to be working exclusively with Amp for the next nine months, and beyond, on a green energy production and export development opportunity of national significance,” Ingle said.

“This important milestone further validates Cape Hardy as South Australia’s pre-eminent hydrogen export hub of scale.

“Our competitive offer-to-bid process was carefully designed to screen the most capable and motivated developer looking to prioritise and advance the project quickly and judiciously.”

The CEO added that after Iron Road ran an expression of interest campaign for the project, the company determined it would appoint Amp as a single lead developer in order to avoid “a crowded playing field at Cape Hardy’.

“We have selected Amp as a single lead developer who we expect will assemble additional consortium partners in collaboration with Iron Road,” Ingle said.

“Amp has been granted appropriate security and tenure to complete early feasibility and master planning work prior to next key development and commercial arrangements being agreed.”

According to Amp, the company was drawn to the project due to its strategic geographic location and strong support from the South Australian Government.

Further, the proposed site has direct access to high-voltage power through existing transmission infrastructure and a deep-water port that will facilitate the transportation of the hydrogen product.

Amp will eventually develop and build up to 5 GW of electrolyser capacity on 410 hectares of land over the next decade at the precinct - a ‘marquee site’ for the Toronto-based firm which has so far built 3 GW of assets globally with another 4 GW either in late-stage development or construction.

The Canadian company already has a connection to South Australia too, having established the Renewable Energy Hub of South Australia in 2021 - a $2 billion investment in renewable generation and battery energy storage for the state.

In parallel with the green hydrogen project, Amp is working on the development of nearby wind and solar projects that will eventually support the Cape Hardy precinct.

“Our background of developing large-scale upstream power systems globally positions Amp for the emerging opportunity of green hydrogen and provides industrial synergies,” Amp co-founder and CIO Paul Ezekiel said.

“The development of strategically located, transmission-connected green hydrogen and ammonia facilities at select locations such as Cape Hardy in South Australia is critical to our continued global growth and long-term strategy.”

South Australian Premier Perter Malinauskas offered his support to Amp today, noting the project would strengthen the state’s ‘world-leading renewable energy reputation’.

“The Cape Hardy precinct speaks to our State’s hydrogen production capabilities. As a leading global hydrogen energy developer and asset owner, we welcome Amp’s continued strategic commitment to South Australia,” Malinauskas said.

“The Hydrogen opportunity will be transformative for the South Australian economy, delivering energy security – while helping the State decarbonise.”