PNG has potential to become ‘huge’ producer of green products

by PNG Business News - December 08, 2021

Photo: PM Marape and Fortescue Future Industries CEO Julie Suttleworth after their meeting

Prime Minister James Marape has been told that Papua New Guinea has "the potential to become a large supplier of green products for the globe," with 19 gigawatts of electricity already estimated from the Purari, Kikori, and Strickland hydro potentials, as well as the West New Britain geothermal projects.

Julie Suttleworth, the CEO of green energy producer Fortescue Future Industries, told the Prime Minister this while on her route to tour project sites in Gulf and West New Britain in her briefing to the PM.

She also rated West New Britain's geothermal locations as "one of the top three regions in the world" for Fortescue projects.

The CEO was replying to the Prime Minister's question on whether PNG's green energy potential will fulfill the projections made by FFI owner and environmentalist Dr Andrew Forrest, who claimed that PNG's renewable energy sources could generate up to 25 gigawatts of power.

Suttleworth said: “We have currently indicated that there were about 15 gigawatts of hydropower that is in the Master Development Agreement that we could access. So we are starting at 15 gigawatts of hydropower; there is approximately 4.3 gigawatts of geothermal also that we have identified at this stage.

“This is early days; there may be more. So that totals to about 19 gigawatts that our study team has already identified. Not quite 25 gigawatts yet, but we hope that over time, we will get to that number. But around now, we know that there is 19 gigawatts of potential.

“If all these projects of about 19 gigawatts of power are developed, they can make over 10 million tonnes per year of green hydrogen, or about 13 million tonnes of green ammonia, or a combination of both, because ammonia is heavier than hydrogen.

“So there is the potential to be a huge producer of green products for the world.

“It is a very important part of our portfolio. We have made a commitment globally to make 15 million tonnes of green hydrogen per year, much of that will come from Australia, but over 2 million tonnes of this will come from PNG which is a huge percentage of our target.

“So the overall vision is to make over 2 million tonnes of green hydrogen from PNG, develop over 19 gigawatts of geothermal and hydropower across the various projects, as well as decarbonise PNG, and have excess for export which is a huge amount to export because PNG won’t need all. 

“We will be doing the studies on the hydropower system to optimise the design of the hydropower dams phase process. So the first Purari sites will be 3 gigawatts. And then there will be stage by stage development – upper Purari, Strickland and others to get to the total of 15 gigawatts. So that does not all happen at once. Start off lower Purari and then others up to 15 gigawatts.

“And at the same time, we need to do more investigative work on the geothermal potential. Geothermal exploration is very expensive. So you need to do a lot of fieldwork first to determine where is the drill bit is going to go down to determine the geothermal potential. This is not done in many places around the world because it is so expensive. Tens of millions of dollars per one hole. It is very expensive drilling. We think there are at least 4 gigawatts of geothermal potential that needs to be explored and determined to the best way to develop.

“So part of studies is working out the best way to develop the hydropower resource and the geothermal resource. Once we got that renewable power, we need to put the transmission lines to the industrial hub. So of course, in the hydropower, you are linking Strickland, Upper Purari, Lower Purari altogether, so then take the transmission line to the coast where there is a port location.

“We are optimising, right now, the best location for the port. We got two or three options.

“And then we need to optimise the hydrogen production facility. How many electrolysis do we need to make the best use of power, and that electrolyser will take the renewable power, electrolysis of water – so we need to determine where we getting the water from. Is it going to be seawater, or from the river. And then we have to clean that water up to use for electrolysis.

“Electrolysis will make hydrogen with zero emissions. That hydrogen can be used or exported or made into ammonia. This first project that we do, we’ll probably make ammonia because it is easy to transport ammonia.”

Because of the lack of information and comprehension of how the process operated, Prime Minister Marape asked Suttleworth to describe the method of producing green hydrogen and green ammonia.

These projects are comparable in size to big LNG projects in terms of exploration, building, operation, and revenue creation for the country, and they have received the government's full backing to move forward.

 

Reference: PM James Marape News Page (5 December 2021). “PNG has potential to become ‘huge’ producer of green products”. 



Related Articles

Energy

PNG Business News - November 09, 2021

Fortescue Future Industries to develop portfolio of major green energy and hydrogen projects in Papua New Guinea

Photo credit: Fortescue Future Industries Fortescue Future Industries (FFI) is partnering with Papua New Guinea (PNG), one of the most renewable energy-rich countries in the world, to develop multiple large-scale green energy and green hydrogen projects. FFI’s Papua New Guinea Fortescue Future Industries Ltd, and the State of Papua New Guinea today 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 for the purpose of producing green hydrogen and green ammonia, creating a significant new domestic energy and export industry for PNG, which currently heavily relies on imported oil. FFI Chief Executive Officer, Julie Shuttleworth AM said, “Our green energy vision for PNG will lead to more jobs, a stronger economy, thriving communities and importantly, lower emissions for Papua New Guinea. “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. “We are looking forward to continuing our work alongside the Government of Papua New Guinea to develop these important opportunities,” Ms Shuttleworth said. FFI’s identified projects in PNG could produce up to 2.3 million tonnes of green hydrogen per year once completed. Fortescue Chairman, Dr Andrew Forrest AO said, “These projects will completely transform PNG to become a leader in the world’s renewable energy transition. “We are committed to ensuring PNG’s communities benefit from growth and development through these projects, including training, employment and business development opportunities,” Dr Forrest said. FFI’s proposed Purari Wabo Hydropower project and West New Britain Geothermal project have made significant progress with scoping studies and early-stage pre-feasibility works completed. FFI is a values-based business committed to enriching communities through economic growth, gender equality of employment and education, and ending exploitation and modern slavery. “We are proud that our investment contracts place human rights, environment and then economics, in that order, in every discussion we have with every government in the world,” Ms Shuttleworth said. “FFI will also undertake extensive community, landowner and stakeholder engagement to develop a detailed national content plan as part of its stakeholder investment strategy.” FFI’s projects will be conducted in full compliance with PNG laws and adhere to strict international best practice standards relating to the conservation and protection of the environment, biodiversity and cultural heritage, occupational health and safety, anti-bribery and corruption, anti-money laundering and eradicating modern slavery.   Article courtesy of Fortescue Future Industries

Energy

PNG Business News - November 11, 2021

MARAPE: PNG’S INVESTMENT PARTNERSHIP WITH DR. ANDREW FORREST BIGGER THAN JUST PURARI RIVER HYDRO

Photo Credit: PNG Buzz / Papua New Guinea's State Enterprises Minister, Sasindran Muthuvel (left), Prime Minister James Marape (centre) and the chairman of Fortescue Metals Group of Australia, Andrew Forrest, sign an agreement in Port Moresby back in September 2020. PRIME Minister Hon. James Marape, MP says Papua New Guinea’s partnership with Dr. Andrew Forrest and his company Fortescue Future Industries (FFI) is bigger than just hydro in Purari River and will encompass a huge set of projects worth billions of kina that must be appreciated and guarded by Papua New Guineans. He says the Fortescue Metals Group – through its subsidiary FFI – is seriously moving into futuristic clean energy and its scope is broader than just the Purari River systems but covering also Kikori and Strickland systems, and the geothermal sites throughout Papua New Guinea beginning in West New Britain Province. “I have met Dr. Forrest on a number of occasions and his interest in green clean energy in PNG is sincere and serious. Through his futuristic green energy subsidiary company, FFI is looking at harvesting up to 25 gigawatts of power for clean energy to sell to the world from our country, including migrating some of FMG industries into PNG. These are huge projects worth billions of kina. “I am utterly disappointed in Post-Courier’s misreporting and misrepresentation today. This is a newspaper company with nearly 30 percent of Papua New Guinean shareholding interest who continue to misreport, belittle and tarnish the work the Papua New Guinea government is doing no matter how big or small. For the journalist to always find negativity in innovation shows a shallow mind when the world is at this point moving into clean energy and new frontiers of technology. “I am a prime minister who is very excited about taking our country into new frontiers and breaking barriers that others think we as a country cannot do. This includes clean green energy, Information & Communication Technology, digital and cyberspace, the downstream of our raw resources in gold, gas, timber, fisheries, agriculture and so forth. “This direction is new and might seem impossible to some. This direction will affect the comfort many are used to and may have enjoyed during the status quo, but I will not be deterred from this course. The world will move in this direction in as far as energy is concerned, and Papua New Guinea is partnering FFI to pioneer this very source as part of our global response to climate change.  “If we do not join, we will be left behind when countries of the world move away from carbon-based energy solutions and into green energy. “All or any company with proposals to do business in PNG are welcomed and can come in with their proposals. We can agree but due processes on compliance to all our laws on investments, regulations and national interests must first of all take place.  "We will process all submissions, like the one from Botswa from Botswana, whom we are awaiting to return to us to advance their business interest in PNG. “The natural resources in PNG are plentiful, including those in the green energy space. Hydro and water resources abound in this country; we can fit any investor in any part of the country who wants to use our rivers and springs so and there is no clash or collision as alluded to by the Post-Courier. “The government has the interest of its people first and foremost and will do everything it sees fit to make sure these large-scale investments are done properly and fully,” said Prime Minister Marape.   Article courtesy of Department of PM&NEC

Energy

PNG Business News - November 18, 2021

Fortescue Future Industries Wants to Fast Track Green Energy projects in PNG

According to Julie Shuttleworth, chief executive officer of Fortescue Future Industries (FFI), the company is working with the government to accelerate the energy transition before 2050. “The FFI is partnering with PNG, one of the most renewable energy-rich countries in the world, to develop multiple large-scale green energy and green hydrogen projects,” Shuttleworth said. “This new partnership marks the beginning of the green industry development in PNG and will enable FFI to undertake feasibility studies to develop up to seven hydropower projects and 11 major geothermal energy projects in PNG. “If the projects proceed, it will generate renewable electricity for the purpose of producing green hydrogen and green ammonia, creating a significant new domestic energy and export industry for Papua New Guinea, which currently heavily relies on imported oil. PNG’s intent is to use 100 per cent renewable energy by 2050 and we are delighted to be working with PNG to support this ambition.” She stated that the FFI was dedicated to assisting PNG in lowering its dependency on fossil fuels and leveraging its renewable energy potential. “Our green energy vision for PNG would lead to more jobs, a stronger economy, thriving communities and importantly, lower emissions for PNG,” Shuttleworth added.   Reference: The National (12 November 2021). “Partners aim to fast track green energy”.


Recent Articles

Business

PNG Business News - June 05, 2023

PNG PM Marape Participates in PIF Leaders Breakfast Caucas

Photo: PNG PM Marape Participates in PIF Leaders Breakfast Caucas Prior to the Korean-Pacific Islands Leaders (Kor-Pic) Meeting, Papua New Guinea Prime Minister Marape joined other PIC Leaders for a breakfast caucus Chaired by Cook Islands Prime Minister and current Pacific Islands Forum Chair Mark Brown, to discuss the agenda and a common position on shared development issues.  Prime Minister Marape said climate variation, being the perennial issue including sourcing appropriate development assistance from the Korean Government was high on the agenda. He said the encouragement during the caucus was for all PIC Leaders to discuss their developmental challenges and put forward their ideas on how Korean Development assistance could complement the 2050 Blue Pacific Strategy.   Following this caucus, Prime Minister Marape, met with Australian Deputy Prime Minister  Richard Marles. Their discussions were centered around progress of the proposed Bilateral Security Treaty (BST), the recently concluded Defense Cooperation Agreement with the US, Visa issues and the PNG NRL Bid. On the BST, Prime Minister Marape mentioned that it was work in progress and required the PNG side to consult our domestic processes and sovereign laws in relation to certain wordings and provisions.  He also conveyed his apologies to Prime Minister Anthony Albanese for the delay in formalising this proposed Treaty with Australia. For the DCA with the US, Prime Minister Marape informed that it was centered around improving the PNGDF's capabilities and interoperability including protecting our frontiers and sovereignty. He said it was non-discriminatory and PNG was open to entering into similar arrangements with its bilateral partners.  “In fact, the DCA would also complement domestic law enforcement,” Prime Minister Marape said. “The Ship Rider Agreement on the other hand was also vital in combating illegal fishing and transnational crimes.” For Visa issues, Deputy Prime Minister Marles informed that the current Australian Government was fully aware of the situation and following the Ministerial Forum in February this year in Canberra, had established a Joint Ministerial Team to work on bringing the Australian visa processing facility back on shore to PNG.  Prime Minister Marape in his response said that all processes from both sides had to be attended to in order for smooth facilitation and for citizens and businesses to continue without much hindrance now and heading into 2050 when PNG celebrates 50 years of nationhood. On Papua New Guinea’s NRL Bid, Prime Minister Marape explained that PNG was still very keen as rugby league was a major unifying factor, bringing our 800 tribes together as one people. In closing Prime Minister Marape assured Deputy Prime Minister Marles that PNG in no way would compromise its excellent existing bilateral relations with Australia and further stressed that PNG was capable of managing its sovereign affairs on its terms, systems and processes.

Business

PNG Business News - June 05, 2023

ADB Helps Launch Vocational Education Project in PNG

The Asian Development Bank (ADB) and the governments of Australia and Papua New Guinea (PNG) today launched a cofinanced project to improve the country’s technical and vocational education and training (TVET) program. PNG's Deputy Prime Minister John Rosso delivered a keynote address at the launch event at Port Moresby Technical College. PNG’s Minister of Higher Education, Research, Science and Technology, and Sports Don Polye, ADB Country Director for Papua New Guinea David Hill, and Australian High Commission Minister Counsellor Paul Lehmann all spoke at the event. The Improved Technical and Vocational Education and Training for Employment Project financed by ADB and the governments of Australia and PNG will strengthen the country’s TVET program and help prepare students to be more competitive and responsive to employment and industry demands. “We hope this project will become a model for all vocational education and skills training in TVET colleges in the country,” said Mr. Rosso. “The beneficiaries of this project—young, skilled workers, including women and men—represent PNG’s future, and through this project, the future of vocational education in PNG looks bright.” This project aims to boost the numbers of skilled workers in the construction and agriculture sectors where demand is high. “We will work with our partners to help advance reforms in the vocational education and skills training space in PNG,” said Mr.Hill. “These sought-after skills in priority sectors will help grow PNG’s economy.” The TVET sector of PNG’s education system comprises public, religious, or private institutions, including technical and business colleges offering postsecondary courses and vocational training.  “The Australian government is pleased to be supporting the Government of Papua New Guinea to achieve its reform goals in technical and vocational education and training to increase the number and quality of skilled workers,” said Australian High Commission Minister Counsellor Paul Lehmann.  “My vision for the TVET for Employment Project is that it will perform as an innovation and technology business incubator across PNG,” said Mr. Polye. “The project is the embodiment of a new approach—building a culture of quality education and innovation in a renewed and revitalized TVET sector.” The Improved Technical and Vocational Education and Training for Employment Project is funded through a $50 million concessional loan from ADB and a $10.6 million grant from Australia. The Government of PNG is also contributing $5.7 million. ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region. 

Business

PNG Business News - June 05, 2023

PNG Forges an Innovation-fueled Partnership with South Korea in Digital Transformation

Papua New Guinea was amongst seven other Pacific Island countries to sign a partnership statement of intent with the Republic of Korea to further cooperation and partnership in digital transformation. Information and Communications Technology Minister Timothy Masiu, who also was appointed co- chair of the just concluded Korea -Pacific Islands Digital Ministerial Conference in Seoul, South Korea, signed the statement together with the meeting chairman Korean Minister for Science and ICT Dr Lee Jong-Ho. The others who signed the partnership intent are Tonga, Nauru, Samoa, Palau, Cook Islands and Kiribati. Australia and the World Bank also attended the meeting as supporting partners. The Statement of Intent states; The partnership recognize digitalization has transformed not only  daily lives but also shapes innovation in all sectors including politics, economy, society, culture and environment. Recognize and note that digital technology offers great potential to address various social economic challenges that come with rapid transformation of society. Agree on continued partnership in digital transformation  inclusive of sustainable development will be the key to future prosperity of the people of Korea and the pacific. Agree on sharing digital vision of policies will pave way for strong partnership to digital co-prosperity.  Mr Masiu expressed deep satisfaction that Korea , the global leading innovation country, has agreed to partner with Pacific countries including Papua New Guinea in digital transformation that will greatly enhance communication in a vast area like the Pacific and more so, strengthen supporting technology to better access to health, education and business. He told the conference that Papua New Guinea has begun the digital transformation with Parliament passing the Digital Government Act 2022 and relevant policies, and welcomed the partnership with the Republic of Korea, which he says, will go a long way in progressing the digital transformation agenda for PNG and the region. Mr Masiu had bilateral meeting with his South Korean counterpart, further seeking a stronger country to country relations in digital transformation and support to the National Broadcasting Corporation proposing a partnership between the NBC and the Korean Broadcasting Services. The Minister has formally invited the Korean Minister for Science and ICT to visit Papua New Guinea for the Pacific ICT meeting in August 2023 or to accompany the South Korean President who has been invited by Prime Minister James Marape to visit PNG. Mr Marape was in Seoul also this week for the Korea- Pacific Islands Forum Leaders meeting. Minister Dr Lee Jong-Ho acknowledges the leadership of Papua New Guinea in digital transformation and reaffirmed its support to PNG and the other Pacific Island countries.

Join Papua New Guinea's

Business Community

Be the "First" to get our exclusive Digital Magazine & Weekly Newsletter.