One of the world’s largest coal ports is looking to establishing a new green hydrogen production and export facility as it looks to a future beyond coal.
The ASX-listed Dalrymple Bay Infrastructure announced on Thursday that it had signed a funding agreement with major shareholders and potential project partners to conduct a feasibility study that will assess the viability and scale of a potential hydrogen production facility at Hay Point in Queensland.
The company operates the Dalrymple Bay Terminal, one of the world’s largest export terminals for metallurgical coal, and which is served by coal producers in the Bowen Basin.
It says it is now looking to hydrogen exports as an opportunity to diversify its business. Interestingly, it is 49 per cent owned by Brookfield Infrastructure Group, part of the funds management giant that has teamed up with Mike Cannon-Brookes for a bid for AGL with a view to fast tracking the closure of its coal generators.
The parties to the funding agreement included North Queensland Bulk Ports Corporation, Brookfield and Japanese trading company ITOCHU Corporation. The partners will share the costs of the feasibility study.
The group signed a memorandum of understanding in August last year and will now co-operate on the assessment of the investments needed to adapt the port’s existing infrastructure for hydrogen exports.
Dalrymple Bay Infrastructure said the port, which has served as a key export terminal for metallurgical coal, had characteristics that also made it an ideal location for the production and export of hydrogen.
“DBT is ideally placed as the location for a possible green hydrogen facility due to its deep-water port, access to the established Mackay industrial zone, availability of land and water, and position within one of Queensland’s Renewable Energy Zones,” the company said in a statement.
“Dalrymple Bay Terminal will continue to play an essential role in the global steel sector. However, DBI has commenced the development of an overarching transition strategy and these feasibility studies are just one step that DBI is taking in its efforts to diversify the business,” DBI’s CEO Anthony Timbrell added.
“By engaging with key stakeholders in this early stage of the process we can ensure DBI continues to provide essential infrastructure while supporting a global transition to lower emissions. I look forward to updating the market in coming periods on the progress of the studies.”
