Hydrogen blast-off

“It is incredibly versatile and can be used to decarbonise transport, industry and power generation, and in many cases existing plants can be adapted to use it,” Ms Underhill said.

“There is an established hydrogen industry and so there is knowledge and experience available to ensure that it is produced and transported safely.

“We expect customers, many of whom will be from countries that heavily rely on coal today, to be a continued driver of progress.” Ms Underhill said Townsville was a region that held tremendous promise for a homegrown green hydrogen industry because of its abundance of zero emissions, solar and renewable energy, as well as its proximity to export markets in Asia.

“This project is one of the largest and most advanced hydrogen projects in Australia with a 300 megawatt electrolyser and the potential to scale up,” she said.

“It will use renewable energy and sustainable water to produce 36 kilotonnes a year of liquid hydrogen for domestic and export markets.”

While Origin did not provide estimates on capital costs, plants one quarter the size in the United States have been reported at $150m.

It will begin detailed front end engineering and design studies next year.

Member for Mundingburra and state government hydrogen champion Les Walker welcomed the announcement.

“This is a great show of confidence in the Townsville region’s future as a renewables powerhouse,” Mr Walker said.

“There is obviously still work to be done on Origin’s plan but this would be a major boon for Townsville as it would create new jobs in a new industry.”

Mr Walker said the Palaszczuk government was backing the potential of the hydrogen industry by appointing a dedicated hydrogen minister in Mick de Brenni.

“We’re also investing $10.6m for the Bohle TAFE facility that will train hydrogen and renewable energy workers,” he said.

Deputy Mayor Mark Molachino said Origin Energy’s plan was exactly the kind of advanced manufacturing the council wanted to attract.

“Our city is uniquely placed to be able to supply hydrogen to both domestic and export markets,” Cr Molachino said.

“We have substantial suitable land and renewable energy capacity, undersubscribed use of the North Queensland Gas Pipeline and renewable energy projects and the deepwater Port of Townsville through which hydrogen can be exported.”