Andrew Forrest's plan to develop a green hydrogen facility on Gibson Island has received an injection of funding from the federal government.
Fortescue Future Industries has been exploring the viability of a water electrolysis facility to produce renewable hydrogen for conversion intro green nitrogen.
This product would then be supplied to Incitec Pivot for use in its ammonia synthesis plant near Brisbane.
Fortescue has received a $13.7 million grant through the Australian Renewable Energy Agency to investigate the $38m engineering and design project.
If constructed, the 500 megawatt electrolyser would be capable of producing up to 70,000 tonnes of renewable hydrogen a year.
Last December Mr Forrest also signed a memorandum of understanding to investigate green hydrogen production as part of AGL's 10-hectare Hunter Energy Park at Liddell in NSW.
Climate Change and Energy Minister Chris Bowen said the Gibson Island project would help Australia become a world leader in hydrogen production.
"The project will provide valuable insights into the cost of producing renewable hydrogen and adapting infrastructure to facilitate exports of renewable ammonia," Mr Bowen said.
"If successful, the electrolyser will be the largest built to date, feeding renewable hydrogen directly into the first fully decarbonised ammonia facility.
"The study is critical to the domestic and export industry for clean hydrogen and ammonia supply-chains to deliver Australia's first renewable hydrogen shipments to international markets."
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It's not the only ammonia production scheme that has been given funding from a government agency, with Perdaman Chemicals and Fertilisers receiving a $220m loan from the Northern Australia Infrastructure Facility last week.
Perdaman's project at Karratha in Western Australia is still in the development phase but if constructed would become the largest urea plant in Australia.
Last week NeuRizer's urea project at Leigh Creek in South Australia also progressed, with the SA government declaring it an Impact Assessed Development.
NeuRizer managing director Phil Staveley said the declaration was a major affirmation of the social, economic and environmental significance of its carbon-neutral NeuRizer urea project.
It would also be one of the biggest infrastructure projects of its type in Australia and provide long term economic development and employment opportunities.
