Queensland solar and battery backed hydrogen hub wins major federal funding boost

Plans to develop a 17.6 MW green hydrogen production plant with a co-located solar and battery facility in Townsville in northern Queensland have received a major funding boost from the federal government, including a nearly $50 million grant from the Regional Hydrogen Hubs program.

Edify Energy said on Tuesday that it had secured the funding for the Townsville Green Hydrogen Hub, which it will build and operate in the Lansdown Eco-Industrial Precinct on Thul Garrie Waja country, with construction expected to begin in 2025.

The green hydrogen plant, powered by an as-yet unspecified solar and battery plant, is expected to initially produce 800 tonnes of green hydrogen a year building up to in excess of 150,000 tonnes of production to service both domestic and export markets from the Port of Townsville.

Townsville is one of several locations across Australia aiming to become a preeminent production and export hub of green hydrogen – including projects planned for Kwinana in Western Australia and Koorangang Island in New South Wales.

Other proposed or planned green hydrogen hubs under development are set for the Pilbara, Gladstone, Bell Bay, and Port Bonython.

The federal government’s contribution to the Townsville Hub is up to $70 million, including $20.7 million from the Australian Renewable Energy Agency. The remaining funding is being sourced from industry and through the German–Australian Hydrogen Innovation and Technology Incubator (HyGATE) initiative.

“Renewable hydrogen is a game changer, opening the door to green metals, green fertiliser, green power and supporting industrial decarbonisation,” said Chris Bowen, federal minister for climate change and energy.

“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.”

Edify Energy CEO John Cole said securing the grant funding for the project was testament to the company’s hard work and track record leading innovation in the renewable sector.

“We look forward to delivering our green hydrogen production facility, initially supplying our domestic customers and thereafter export markets from the Port of Townsville at a large scale, which is the end game,” Cole said.

“Being at the vanguard of what will be a world-class hydrogen hub in Townsville is incredibly motivating.  Today is a watershed moment for Townsville.”

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 on the Townsville hub will begin next year and be complete in 2026, with initial commercial operations scheduled to start in 2027. The project 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.