In the sun-baked expanses of Queensland, Australia, a Taiwanese company is making an ambitious play in the global race for green hydrogen supremacy. Green Harvest Holdings, a relative minnow in the energy sector, is swimming with the sharks in a market dominated by Japanese and Korean heavyweights.
The company's target: a stake in H2U's (Hydrogen Utility) project, which aims to produce 1 million tonnes of green ammonia annually by 2028, potentially quadrupling to 4 million tonnes by 2033. K.H. Chen, Green Harvest's co-founder and executive director, believes it is crucial for Taiwan's energy future.
"We're not just looking to buy finished products. We want to be involved from the ground up, bringing Taiwan's technological prowess to bear on this project."
The venture comes as Taiwan grapples with its energy transition, targeting 9-12% of its energy from hydrogen by 2050.
The Industrial Technology Research Institute (ITRI) projects that by 2050, the demand for hydrogen and ammonia will reach around 7.5 million tons, with hydrogen accounting for approximately 4.35 million tons and ammonia about 3.15 million tons. Of this hydrogen, roughly 3.25 million tons, or 75%, will need to be imported, while 1.1 million tons, or 25%, will be produced domestically.
Ensuring a stable supply of hydrogen is critical for Taiwan. With limited domestic production capacity, the island nation is looking abroad to secure its supply.
Australia, with its vast tracts of land and abundant renewable energy potential, has emerged as a prime location for green hydrogen production. The country is actively wooing international investors, with Japanese trading houses already securing significant stakes in several large-scale projects.
Green Harvest's approach, however, differs from the typical investment strategy. Chen is pushing for Taiwanese companies to be involved in the project's working groups, particularly in areas such as water treatment, motor and electrical control design, and maintenance services for electrolyzers.
"Taiwan's semiconductor industry has given us world-class expertise in ultra-pure water treatment," Chen explained. "We could apply this knowledge to hydrogen production processes."
The project, situated in Gladstone, a deep-water port traditionally used for coal exports, benefits from existing infrastructure. This strategic location could give the venture a competitive edge in the burgeoning green hydrogen market.
However, Green Harvest faces significant challenges. The company is calling for support from the Taiwanese government, proposing a sovereign wealth fund-like approach to leverage private sector participation. "We're a small company, not a trading house. We need government backing to realize this vision," Chen stated.
The geopolitical landscape adds another layer of complexity. Chen views Australia as a "friendly" investment destination for Taiwan, free from the Chinese interference that might be encountered in other regions. This could prove a significant advantage as Taiwan seeks to secure its energy supply while navigating tense cross-strait relations.
Financial considerations loom large. The project is in talks with a leading global logistics company for transportation, and each major investor is expected to take a 10-15% stake. A final investment decision is anticipated by the end of 2025, with production slated to begin in 2028.
The venture also highlights Australia's infrastructure challenges. Despite its green energy ambitions, the country's power grid lags behind, with transmission lines of lower voltage than those in the much smaller Taiwan. This presents both obstacles and opportunities for companies involved in the project.
Credit: Green Harvest
As the global hydrogen economy takes shape, Taiwan's moves in this space could signal a shift in its industrial and energy policies. Green Harvest's Australian gambit is more than a bid for energy security; it's an attempt to position Taiwan as a key player in the green hydrogen ecosystem.
"We have the technological know-how," Chen asserted. "Now we need the vision and support to make it happen."
With a final investment decision expected by the end of 2025 and production slated to begin in 2028, the coming months will be crucial for Green Harvest and Taiwan's ambitions in the green hydrogen space. As the world watches Australia's hydrogen boom unfold, Taiwan's moves in this space could signal a new chapter in its energy and industrial policy.
