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The global transition to sustainable energy is essential for reducing greenhouse gas emissions and combating climate change. Green hydrogen, produced from renewable energy sources such as wind and solar power, offers a clean and efficient alternative to fossil fuels across various industries. However, despite significant progress in sectors like transportation, the mining industry—one of the largest energy consumers—has seen limited exploration and investment in hydrogen integration.
This study evaluates the economic feasibility of transitioning the diesel-powered Frances Creek iron ore mine in the Northern Territory, Australia, to hydrogen energy. Multiple scenarios are analyzed, including on-site hydrogen production via electrolysis powered by solar, onshore wind, offshore wind, and grid electricity, as well as hydrogen delivery from external suppliers. Stochastic analysis and Monte Carlo simulations are applied to address input uncertainties and project costs through 2050. Findings indicate that on-site electrolysis powered by onshore wind energy is the most cost-effective solution, leveraging Australia’s vast renewable resources. Conversely, grid-powered electrolysis proves the least economical due to high electricity costs. The results demonstrate that shifting to hydrogen power is not only economically viable but also significantly reduces CO2 emissions, aligning with Australia’s decarbonization goals and advancing sustainable mining practices.