Japanese company Mitsubishi Heavy Industries (MHI) has announced a capital investment in Australian green hydrogen and ammonia project developer H2U Investments.

The H2U Investments is the holding entity of the H2U Group, which includes the Hydrogen Utility (H2U).

The company is developing the Eyre Peninsula Gateway Hydrogen project, a 75MW electrolysis plant and a 120-tonne per day ammonia production facility.

It will have the capacity to produce nearly 40,000 tonnes of green ammonia per year.

Under the terms of the deal, MHI will support H2U’s projects and business development initiatives along with its involvement in the front-end engineering and design (FEED) study for the Eyre Peninsula project in South Australia.

Specifically, the company will provide engineering resources for the FEED study phase and key plant equipment that include hydrogen gas turbines and hydrogen compressors.

The Eyre Peninsula Gateway is scheduled to begin commercial production of green hydrogen and ammonia by the end of 2022.

MHI said: “Green hydrogen produced by water electrolysis using power derived from renewable energy sources such as wind and solar, will be used in the manufacture of green ammonia, and to demonstrate hydrogen-powered gas turbine generators.”

The company along with H2U will also explore the options to achieve synergies using nearby industrial operations along with shared infrastructure.

MHI also said that it aims to export green hydrogen and ammonia to Japan and other countries to help drive industrial decarbonisation on a global scale.

In October this year, MHI invested in HydrogenPro, a Norwegian developer of electrolysers and devices that produce hydrogen through water electrolysis.