Green hydrogen developers Fortescue Future Industries and France’s Total Eren have been awarded parcels of land in Darwin’s Middle Arm Sustainable Development Precinct, as has the developer of the controversial Beetaloo gas project in the Northern Territory.
The local government describes Middle Arm as a new clean energy, investment and jobs powerhouse, but has come under scrutiny because it is also designed to support major new fossil fuel developments, including an LNG export facility developed by Tamboran Resources, the developer of Beetaloo.
The federal Labor government has argued that its $1.5 billion support for the Middle Arm development does not amount to a subsidy for fossil fuels, but the decision to award land to Tamboran casts great doubt over that claim.
The NT government, which gave approval for fracking in the Beetaloo Basin last month – it is expected to start drilling in July – describes Tamboran’s proposed LNG export facility as “lower emissions.”
“A lot of nonsense gets spouted about Middle Arm, but today’s announcement shows the Territory, investors and the rest of the country just how committed my government is to making this a reality,” chief minister Natasha Fyles said in a statement on Friday.
In a separate statement, Tamboran says it hopes to begin production of 6.6 million tonnes a year of “affordable gas” from 2030, supplying the east coast as well as export markets.
“This announcement confirms what groups like ours have been saying since day one – that the government-provided $1.5 billion for the Middle Arm Precinct will be a taxpayer funded subsidy for fracking companies like Tamboran,” said Frack Free NT spokesperson Phil Scott said,
“This is the Albanese and Fyles Government working hand in fist to artificially create a market for fracked gas when otherwise, it’s unlikely production scale fracking would be economically justifiable in the Territory.”
More comforting to clean energy advocates is the land allocated to Total Eren and Andrew Forrest’s FFI – both of which may be looking to the massive Sun Cable solar and battery project as a supplier of green power to their planned renewable hydrogen projects.
Total Eren owns TEH2, which is proposing to develop a green hydrogen production facility using solar energy with the capability of producing more than 80,000 tonnes of renewables-based hydrogen per annum for domestic and export potential.
FFI is also proposing to develop a green hydrogen hub, comprised of green hydrogen and green ammonia production and export facilities.
FFI’s major shareholder, Andrew Forrest, had been a backer of the Sun Cable solar and battery project, but withdrew after deciding that the plan to export solar power to Singapore via a 4,200kms sub sea cable would not stack up.
But Sun Cable, now controlled by Mike Cannon-Brookes and with new backers including Quinbrook, is looking at supplying the domestic market, and Middle Arm in particular, as part of the first stage of the project, which will include an 800km transmission line from Elliott to Darwin.
So there could still be a deal in the offing between the two billionaire green energy proponents.
The inclusion of the LNG terminal for the Beetaloo gas fracking project might pose a dilemma for the Sun Cable owners.
Other land parcels were offered to Tivan, which is proposing to produce vanadium oxides for use in vanadium redox flow batteries, and Avenira, which isproposing a lithium-ferro-phosphate (LFP) cathode manufacturing facility, which will manufacture pre cursor battery cathode materials from critical minerals.
The NT government says these project represent “tens of billions of dollars” in capital investment, and the potential to create 20,000 jobs.
The five companies have 12 months to confirm their land parcels, and are being asked to progress their facility designs, engineering work and pre-feasibility studies and environmental approvals.
“The Northern Territory is positioned to be a global leader in low-emissions energy export and critical minerals processing, taking advantage of our world-class solar and energy resources, and meeting strong international market demand to facilitate energy transition globally,” a government statement said.
It said emissions from the fossil fuel developments will be mitigated by a “Carbon Capture Utilisation and Storage Hub”.
“Clean energy jobs are the future, and that’s the future we’re building for the Territory,” Fyles said.
“We’re absolutely committed to growing our economy while also transitioning to net zero emissions, and Middle Arm will play a huge part in that transition. This is what responsibly decarbonising and diversifying our economy looks like.
“We’ve always said that sustainability will be at the core of Middle Arm, and our focus on clean energy demonstrates that. An environmental strategic assessment is underway now for the entire precinct.”
