Renewable hydrogen hub for north Queensland receives federal funding

The Australian Government has announced it is investing up to $70 million to develop the Townsville Region Hydrogen Hub in north Queensland.

The government said in a press release that it will create at least 200 direct job opportunities for local electricians, plumbers, fitters and concreters during construction, as well ongoing jobs in technical and engineering roles.

The initial stage of the hub will produce 800 tonnes of green hydrogen per year, enough to fuel over 40 heavy vehicles a year. It will ramp up to around 3000 tonnes for domestic supply and ultimately in excess of 150,000 tonnes for export.

The hub, led by Edify Energy, will produce green hydrogen for use by local industry and in zero-emissions transport. It will also deliver a 17.6 MW domestic production facility with integrated renewable energy generation and battery storage.

Edify and its partners — including Siemens Energy, Queensland TAFE, James Cook University and Townsville Enterprise Limited — will work with industry bodies to provide education and training to ensure Townsville’s workforce is skilled and ready to develop and sustain the region’s hydrogen industry.

Construction will begin next year and be complete in 2026, with initial commercial operations scheduled to start in 2027.

The project has over $137 million of combined investment. The Commonwealth’s contribution is up to $70 million, including $20.7 million from the Australian Renewable Energy Agency.

The remaining funding is being sourced from industry and the German Government. The Australian-German collaboration brings together Germany’s expertise in hydrogen technology and Australia’s potential to be a world leader in the production and export of renewable hydrogen, according to the release.

Townsville is part of over $500 million in Commonwealth funding for hydrogen hubs in regional centres like Gladstone, Bell Bay, Kwinana, the Pilbara, Port Bonython and the Hunter.

“The global shift to clean energy and decarbonised economies is a huge economic opportunity for North Queensland,” said Prime Minister Anthony Albanese. “We are determined to grasp this opportunity and are investing half a billion dollars into regional hydrogen hubs all around Australia.”

“Renewable hydrogen is a game changer, opening the door to green metals, green fertiliser, green power and supporting industrial decarbonisation,” said the Minister for Climate Change and Energy Chris Bowen. “The whole world needs renewable hydrogen, and regional Australia is ready to provide it. With its port, expertise in exports and access to Queensland’s abundant solar resources, Townsville is ideally placed to help power the world with Australian renewable energy and create jobs in regional Australia.”