Investment needed to transform Gladstone into green hydrogen hub and create thousands of jobs

Gladstone is set to become a major green hydrogen hub with thousands of jobs in the pipeline, but federal support is needed to supercharge the private sector’s transition. Here’s what green energy groups say needs to happen.

Transforming Gladstone into a green hydrogen hub will depend on significant investment from the Federal Government, researchers say, as more renewable energy is needed to help major employers transition sooner.

Gladstone could be the epicentre for hydrogen projects and a bustling renewables industry, creating more than 11,000 jobs and generating $2b annually within a decade, but more Federal Government funding is needed for the necessary power supply and provide certainty for the private sector.

A new report by green energy think tank, Beyond Zero Emission (BZE), says the establishment of seven different renewable energy precincts across Australia, including at Gladstone, in the next decade would kickstart innovation and attract almost $40b in private investment.

Alpha HPA staff check on progress at the high-purity alumina pilot project in Brisbane, an example of a Renewable Energy Industrial Precinct business that is coming to Gladstone. Picture: Alpha HPA

A Gladstone Renewable Energy Industrial Precinct (REIP) would attract more than $8b alone and power the transition for major players in the region such as Rio Tinto, Alpha HPA, Orica, and Fortescue.

A $6.3b investment from the Federal Government would boost the country’s renewable energy supply, allowing existing industries to decarbonise and power emerging industries.

Gladstone needs 34GW of renewable energy to diversify its energy supply, according to Beyond Zero Emissions, but currently only 2.9GW of renewable energy projects are locked in.

It comes as Japanese companies, such as Iwatani Corporation, are partnering with state-owned providers to develop Gladstone’s hydrogen supply.

Dr Heidi Edmonds is the Queensland Project Manager at Beyond Zero Emissions. Picture: NewsCorp

BZE Queensland projects manager Dr Heidi Edmonds said Australian manufacturing had been revitalised by renewable energy and would attract new investment protecting thousands of jobs into the future.

“REIPs are the smart way to take advantage of this boom, revitalising our industrial heartlands with low-cost renewable energy to make the goods the new economy demands and protect our industrial heritage,” Dr Edmonds said.

“Business cannot be expected to build and co-ordinate the infrastructure needed … especially with so many businesses entering the green export industry.

“Governments helped build our rail, road, energy and telecommunications infrastructure and now we need to ramp up our renewable energy capacity and diversify our energy sources.”

Deputy Prime Minister Barnaby Joyce with Flynn candidate Colin Boyce visit to AusProof factory in Gladstone this week. Picture: Brad Hunter

LNP candidate for Flynn, Colin Boyce said Australia should invest in technological developments, but not at the expense of local business and jobs, particularly in Central Queensland.

“Baseload power is absolutely critical to ensuring the capacity of our energy grid, and right now, renewables aren’t a viable alternative, meaning there’s no doubt that coal and gas should continue to play an important role in our electricity market into the future,” Mr Boyce said.

“We all know that hydrogen isn’t going to displace other industries anytime soon, so we are working to build it alongside other energy systems, including coal fired generation.”

A general view of the Queensland Alumina Limited (QAL) alumina refinery in Gladstone, which is majority owned by Rio Tinto. Picture: Dan Peled

A Rio Tinto spokesman confirmed the company’s commitment to re-powering its aluminium assets in Queensland and NSW with renewables by 2030.

“We are also working closely with the Queensland Government on the role we can play by underwriting long-term green offtake for our Gladstone industrial assets,” the spokesman said.

“In addition to re-powering our smelters, Rio Tinto is studying replacing natural gas with hydrogen in part of the alumina refining process at Gladstone, under a partnership with the Australian Renewable Energy Agency.”

It comes as Rio Tinto announced it has taken on 100% of the capacity and governance of Queensland Alumina Limited (QAL), at Gladstone, until further notice.

QAL is 80 per cent owned by Rio Tinto and 20% owned by Russian giant, Rusal.

Deputy Prime Minister, Barnaby Joyce visited Gladstone on Thursday and Friday to speak in support of coal and industry while and attend a sod turning at the Moranbah mine.