Iron Road Ltd (ASX:IRD) (OTCMKTS:IRNRF) is encouraged with the start of work on master planning for a green manufacturing precinct at Cape Hardy in South Australia integrating a ‘green pellet’ plant fuelled by renewable energy and using high-grade iron concentrate from the company’s Central Eyre Iron Project (CEIP).
Iron Road’s CEIP on the Eyre Peninsula is at the forefront of Australian magnetite projects.
The master plan work follows an extension to the company’s Heads of Agreement and Project Development Accord with The Hydrogen Utility (H2U), which attracted Mitsubishi Heavy Industries Ltd, a leading Japanese multinational engineering, technology and investment partner.
Having secured this strategic cornerstone investor, H2U is now able to accelerate its development projects in South Australia, including detailed planning for a green manufacturing precinct at Iron Road’s 1,100-hectare Cape Hardy port site.
Cape Hardy site
H2U has identified, that within a broader master plan, a minimum 200-hectare footprint on the Cape Hardy site is required for the proposed green manufacturing precinct following evaluation of the master plan.
Key elements, according to H2U, include the planned development of up to 5GW electrolyser capacity, production facilities for green hydrogen, further analysis of the downstream green chemical manufacturing opportunities and the development of input renewable energy resources.
The potential to further leverage the region’s endowment of renewable energy resources to drive wider economic growth opportunities for the state such as the 12 million tonnes per annum CEIP highlights steadily increasing recognition of Iron Road’s asset base from a growing number of joint development partners.
Renewable energy leader
Mitsubishi Heavy Industries Ltd (MHI) investment in H2U recognises South Australia as the leading economy, globally, in the integration of variable renewable energy into its electricity generation mix.
By leveraging abundant renewable energy resources on the Eyre Peninsula to produce green hydrogen and green ammonia as part of the State’s carbon-free energy solutions, these initiatives will help decarbonise mineral processing and agricultural industries in the region.
An early mover business model also lays the foundation to export locally produced green hydrogen, green ammonia and processed mineral commodities such as green iron ore pellets to Japan and other destinations.
Commencement of commercial production of green hydrogen and ammonia in South Australia is planned towards the end of 2022.