A new green hydrogen and ammonia production facility planned for Moree, New South Wales, is drawing attention beyond Australia as agriculture worldwide searches for ways to reduce emissions and secure future fertilizer supplies.

The Good Earth Green Hydrogen and Ammonia project, recently approved by the New South Wales government, will be one of the first large-scale plants in the region designed to produce ammonia using renewable energy and green hydrogen rather than fossil fuels.

While the facility will initially serve farms in northern Australia, the project reflects a broader global trend that is increasingly relevant for fertilizer markets and agricultural production in countries like the United States.

Renewable ammonia for farming

The project represents a US$70 million investment led by Hiringa Energy Pty Ltd and Sundown Pastoral Company, with US$45.2 million in funding from the New South Wales government.

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Once operational, the facility will produce enough green hydrogen to generate around 4,500 metric tons of ammonia annually. The ammonia will serve two main purposes: fuel and fertilizer for agricultural operations.

A significant portion of production will supply Sundown's Keytah cotton farm, allowing the operation to reduce its dependence on diesel and fossil-fuel-based fertilizers, two inputs that represent major sources of emissions in modern agriculture.

Any surplus ammonia will be available for other farming operations in the region, potentially supporting broader adoption of lower-carbon agricultural inputs.

The project is also expected to create about 60 jobs during construction and 10 permanent roles once the facility begins operations, helping support rural economic activity.

A model for decentralized fertilizer production

One of the most notable aspects of the project is its decentralized approach to ammonia production. Instead of relying on large centralized fertilizer plants and long-distance transport, the facility will produce ammonia close to where it will be used on farms.

This model could reduce transportation costs and emissions associated with fertilizer distribution while strengthening regional supply chains.

For farmers worldwide, fertilizer prices remain closely tied to energy markets, particularly natural gas, which is the primary feedstock used in conventional ammonia production.

By contrast, green ammonia uses hydrogen produced from renewable electricity, potentially offering a pathway to reduce agriculture's reliance on fossil fuels.

Implications for U.S. agriculture

Although the Moree project is located in Australia, the concept has growing relevance for the U.S. agricultural sector, where interest in hydrogen-based fertilizers has expanded rapidly in recent years.

Several hydrogen and ammonia initiatives are being developed across the United States, supported by incentives from the Inflation Reduction Act and federal clean-energy programs. These projects aim to produce low-carbon ammonia for fertilizers, energy storage and maritime fuels.

For American farmers, the development of green ammonia could eventually help stabilize fertilizer supply and reduce exposure to volatile natural gas prices, which have historically driven major swings in nitrogen fertilizer costs.

At the same time, agricultural producers remain cautious about the economic viability of these technologies, as green ammonia production costs are currently higher than conventional methods.

However, continued innovation and scaling of hydrogen infrastructure may gradually narrow that gap.

Projects like the one in New South Wales illustrate how the energy transition is beginning to intersect directly with agriculture, particularly in sectors such as fertilizer production that have traditionally relied heavily on fossil fuels.

As countries experiment with new technologies and decentralized production models, the global fertilizer industry could gradually evolve toward lower-carbon supply chains that integrate renewable energy and agriculture more closely.

For farmers and agricultural markets in the United States, developments like these serve as early signals of how future fertilizer production and farm energy systems may change over the coming decades.