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Australian renewables developer Edify Energy has obtained a USD 31.8 million grant in funding, from the federal government to lead the development of the first phase of its up to 1-GW hydrogen hub in the north Queensland city of Townsville as it takes advantage of growing global demand for green hydrogen. According to a statement issued by Edify, the financing will be extended under the Australian government’s Regional Hydrogen Hubs programme and will support the initial 17.6-MW part of the ambitious scheme. Edify Energy will spearhead the development of the Townsville Region Hydrogen Hub after being named as the recipient of USD 46.3 million in funding allocated by the Australian government to support projects that accelerate the delivery of a green hydrogen industry in north Queensland. Hub Location The renewables developer will install a 17.6 MW demon facility within the Lansdown Eco-Industrial Precinct, about 50 kilometres south of Townsville, close to a proposed solar park and a battery energy storage system. Impacts of the project The hydrogen plant will source electricity from the nearby photovoltaic farm to generate about 800 tonnes per year initially, starting in 2025. The output is planned to be used for industrial purposes. The federal government has estimated that the Townsville hydrogen hub will create about 200 direct jobs, as well as 300 ongoing jobs. Construction of the Townsville green hydrogen hub which will co-locate producers and users of hydrogen, is due to start next year and be complete in 2026, with commercial operations scheduled to commence in 2027. Project capacity and output Development approval for the Tonswville project that was awarded in September 2021 is now in the initial stage of supporting the production of 800 tonnes of green hydrogen per year, before ramping up to about 3,000 tonnes per annum for domestic supply with a view to scaling up production to 150,000 tonnes per year for foreign markets. Talks are at advanced stages to secure off-takers across power generation, heavy industry and transport according to Edify. The Australian Energy Minister Chris Bowen highlighted that renewable hydrogen shapes as a “game changer” for the country’s economy, opening the door to green metals, green fertiliser, green power and supporting industrial decarbonisation. |
