Taiwanese company Ruihe Holdings signed Taiwan's first overseas green hydrogen development agreement, H2U, in Australia on the 2nd. H2U is a large-scale green hydrogen development project involving companies from Taiwan, Japan, South Korea, and Australia. Ruihe Holdings is the exclusive Taiwanese partner in this project.
H2U's goal is to produce 4 million tons of green ammonia annually by 2032. The first phase of the project is expected to begin production in 2028, with an annual output of 1 million tons of green ammonia. The green ammonia will be shipped to Taiwan in the same year, providing Taiwanese industries with competitive low-carbon raw materials.
H2U multinational project aims to produce 1 million tons of green ammonia by 2028
The H2U project, located in Queensland, Australia, is jointly developed by Taiwan's Ruihe Holdings, Japan's Mitsubishi Heavy Industries, South Korea's East-West Power, Australia's Royal Vopak, and Aurecon. Leveraging Australia's affordable green electricity and land, it aims to provide competitively priced green hydrogen.
H2U's green hydrogen and green ammonia production will be partially used by local Australian businesses, with the remainder exported. Since the transportation of liquid hydrogen is still in the experimental phase, the green hydrogen will be converted into green ammonia for export to Taiwan, Japan, and South Korea. H2U's projected goal is to produce 4 million tons of green ammonia annually by 2032. The first phase of the project is expected to be completed in 2028, producing 1 million tons of green ammonia annually.
On the afternoon of the 2nd, Ruihe Holdings completed the signing ceremony in the presence of Taiwan's representative to Australia, Xu Youdian, and Queensland Deputy Premier Cameron Dick. Dick noted that this marks the first step in exporting Queensland-produced green ammonia to Taiwan and a significant milestone in bilateral relations between Taiwan and Queensland. Xu Youdian stated that green hydrogen produced from Australia's abundant natural resources will help Taiwan achieve its net-zero transition goal by 2050.
Taking advantage of Australia's cheap green electricity: Local companies take the first step towards developing green hydrogen abroad
After more than a year of evaluation, with the active assistance of the National Energy Administration and the Australian Office's Commercial Affairs Office, Ruihe Holdings finally secured the first exclusive green hydrogen development contract from a Taiwanese company, securing a green hydrogen fuel source. Chen Kunhong stated that the price of green hydrogen depends on cheap green electricity, cheap land, and abundant water resources, which are major advantages for Australia's green hydrogen development.
According to the National Development Council's net-zero pathway, hydrogen energy will account for 9-12% of Taiwan's electricity by 2050. The Industrial Technology Research Institute (ITRI) estimates that demand for hydrogen and ammonia in 2050 will be approximately 7.5 million tons, including approximately 4.35 million tons of hydrogen and 3.15 million tons of ammonia.
Liquid ammonia is a key raw material for Taiwan's fertilizer, chemical, and electronics industries, and currently relies entirely on imports. Chen Kunhong stated that Taiwan currently imports approximately 600,000 tons of ammonia annually. The government is planning to co-produce hydrogen and ammonia for power generation to reduce carbon emissions. In the future, imported green ammonia could be used not only for industrial use but also for power generation.
Regarding price competitiveness, Chen Kunhong explained that imported ammonia is mostly produced using conventional electricity, which, while low-cost, results in high carbon dioxide emissions. Internationally, carbon emissions charges have begun to be implemented. Green hydrogen and green ammonia produced using wind and photovoltaic power, while slightly more expensive, remain competitive in the market as water electrolysis technology matures and the carbon market develops.
Source: Environmental Information Centre
