The State of Papua New Guinea and FFI’s Papua New Guinea Fortescue Future Industries Ltd today (8th August) have signed a Master Development Agreement (MDA) that will enable FFI to undertake feasibility studies to develop up to seven hydropower projects and 11 geothermal energy projects in PNG.
These projects would generate renewable electricity to produce green hydrogen and ammonia, creating a significant new domestic energy and export industry for PNG, which relies on imported oil.
FFI’s identified projects in Papua New Guinea could produce up to 2.3 million tonnes/year of green hydrogen once completed. FFI’s proposed Purari Wabo Hydropower project and West New Britain Geothermal project have significantly progressed with scoping studies and early-stage pre-feasibility works completed. FFI will undertake extensive community, landowner and stakeholder engagement to develop a detailed national content plan as part of its stakeholder investment strategy.
Julie Shuttleworth, the FFI CEO, said, “We share Prime Minister Marape’s vision that PNG can be at the forefront of developing hydropower and geothermal resources for the emerging global green hydrogen industry. “
Dr Andrew Forrest, Fortescue Chairman, added, “These projects will completely transform PNG to become a leader in the world’s renewable energy transition.
Recently, Australia and Papua New Guinea have agreed, on the side-lines of COP26 on 3rd November, to join forces to create an efficient and accessible carbon market for the region under the Indo-Pacific Carbon Offsets Scheme. The partnership will see both countries share expertise to ensure Papua New Guinea is internationally recognised as a source of high-integrity carbon mitigation outcomes.