Gov’t injects $70M into Townsville’s renewable hydrogen hub

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Image credit: statedevelopment.qld.gov.au

The Australian Government is committing up to $70 million to establish the Townsville Region Hydrogen Hub in North Queensland in a move towards solidifying Australia’s position as a renewable energy powerhouse.

This initiative aligns with the government’s election promise to build a hydrogen hub in the region, fostering job creation and sustainable energy development, as revealed in a media release.

The project, spearheaded by Edify Energy in collaboration with key partners such as Siemens Energy, Queensland TAFE, James Cook University, and Townsville Enterprise Limited, aims to create a robust renewable hydrogen infrastructure.

The initial phase of the project will generate 800 tonnes of green hydrogen annually, capable of fueling over 40 heavy vehicles each year.

As the hub progresses, production is set to increase to approximately 3,000 tonnes for domestic consumption and exceed 150,000 tonnes for international export.

Edify Energy, leading the venture, will produce green hydrogen for local industries and emissions-free transportation and establish a 17.6 MW domestic production facility with integrated renewable energy generation and battery storage.

The project is expected to create at least 200 direct job opportunities for the local workforce during construction, spanning roles such as electricians, plumbers, fitters, and concreters.

Furthermore, ongoing jobs in technical and engineering capacities will be available once the hub is operational.

Collaborating with industry bodies, including Siemens Energy, Queensland TAFE, James Cook University, and Townsville Enterprise Limited, Edify Energy aims to provide education and training to ensure that the local workforce is well-equipped to contribute to and sustain the burgeoning hydrogen industry.

Construction is scheduled to commence next year, with completion anticipated in 2026. Initial commercial operations are expected to begin in 2027.

“We are determined to grasp this opportunity and are investing half a billion dollars into regional hydrogen hubs all around Australia,” Prime Minister Anthony Albanese stated.

Similarly, Minister for Climate Change and Energy Chris Bowen expressed that renewable hydrogen stands as a game changer, providing avenues for green metals, green fertilizer, green power, and supporting industrial decarbonization.

“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,” Minister Bowen concluded.

The project, with a total investment exceeding $137 million, is supported by the Australian Renewable Energy Agency (ARENA), contributing $20.7 million.

The remaining funding is sourced from industry stakeholders and the German Government.

The Townsville Region Hydrogen Hub is part of the broader initiative, with over $500 million in Commonwealth funding allocated for hydrogen hubs in regional centres like Gladstone, Bell Bay, Kwinana, the Pilbara, Port Bonython, and the Hunter.