Australia, Hydrogen Projects, Projects, Renewables

$70m secured for Townsville hydrogen project

The Albanese Government is injecting up to $70 million into the development of the Townsville Region Hydrogen Hub in North Queensland, signalling a significant leap in Australia’s renewable energy sector and regional job creation.

According to the government, the hub is anticipated to generate a minimum of 200 direct job opportunities during construction, providing employment for local electricians, plumbers, fitters, and concreters. Additionally, ongoing roles in technical and engineering capacities are expected, further bolstering the regional economy.

The initial phase of the hub is projected to produce 800 tonnes of green hydrogen annually, sufficient to power over 40 heavy vehicles each year. Plans are underway to scale up production to approximately 3000 tonnes for domestic supply, with ambitions to exceed 150,000 tonnes for export.

Led by Edify Energy, the project will not only produce green hydrogen for local industrial use and zero-emissions transport but will also deliver a 17.6MW domestic production facility equipped with integrated renewable energy generation and battery storage.

Edify Energy, in collaboration with partners such as Siemens Energy, Queensland TAFE, James Cook University, and Townsville Enterprise Limited, will provide education and training to ensure Townsville’s workforce is skilled and equipped to sustain the region’s hydrogen industry.

Construction is slated to commence next year, with completion expected by 2026 and initial commercial operations scheduled to commence in 2027.

With combined investment surpassing $137 million, the Commonwealth’s contribution stands at up to $70 million, inclusive of $20.7 million from the Australian Renewable Energy Agency. The remainder of the funding is sourced from industry stakeholders and the German Government.

This collaborative effort between Australia and Germany harnesses Germany’s expertise in hydrogen technology and Australia’s potential to emerge as a global leader in renewable hydrogen production and export.

Prime Minister Anthony Albanese emphasised the significance of investing in Townsville’s hydrogen industry. “Investing in Townsville’s hydrogen industry is investing in Australia’s future,” Albanese said.

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

Federal Minister for Climate Change and Energy Chris Bowen highlighted Townsville’s strategic advantage.

“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,” he said.

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