Dalrymple Bay hydrogen project could add up to 250 jobs

Dalrymple Bay’s deep water port makes it the perfect for expansion to produce, store and export a new energy offering. Read what a new study will determine.

Dalrymple Bay Infrastructure is working on a plan to capitalise on future demand for exported hydrogen from international trading partners.

The Dalrymple Bay Terminal at Hay Point is the world’s largest metallurgical coal export facility, playing a key role in the global steel industry supply chain.

A feasibility study will determine the potential for a green hydrogen production, storage and export facility at the site.

Hay Point and Dalrymple Bay coal terminals. Picture: Rae Wilson

DBI CEO Anthony Timbrell said stage one of the feasibility studies would begin during 2021.

“The terminal is ideally placed to develop a green hydrogen facility due to its deep water port, the established Mackay industrial zone, the availability of land and water and position within one of Queensland’s Renewable Energy Zones,” he said.

“The Dalrymple Bay Terminal has operated for nearly 40 years and we remain fully committed to maintaining and expanding existing infrastructure to assist our current customers to service the world’s steel sector.

Dalrymple Bay Coal Terminal – 1998.

“The possible addition of new hydrogen-based products to complement our current export position would see DBT play an even bigger role in the export of key resources to satisfy the world’s demand for steel and low carbon energy sources, such as hydrogen.”

While there is no definitive answer on how many jobs the project could ultimately create, a number of other smaller renewable projects have created between 94 – 250 jobs.

Coal ships moored at Hay Point and Dalrymple Bay coal-loading facilities. Picture: Daryl Wright

Mr Timbrell said 350 people were employed directly at the terminal now, with more than 20,000 mining, farming and transport jobs supported by the export trade to 23 countries that passes through it and Hay Point.

“This feasibility study is to determine various technology, infrastructure and market options to get us to a final investment decision,” he said.

Coal ships moored at Hay Point and Dalrymple Bay coal loading facilities. Picture: Daryl Wright

“For example, the study will look at the best way to produce the green hydrogen onsite at Hay Point, and how we might add to our Dalrymple Bay Terminal infrastructure that is already in place to bulk load it onto to ships for export.

“This process will also determine the economic viability of green hydrogen production and export for international and domestic markets.

“These trade markets are not yet active, but there is a lot of planning throughout Asia for the use of green hydrogen, especially for steel making and use in industry and heavy transport. “We are therefore keen to ensure that when these markets do develop that we can use the excellent infrastructure we have at Hay Point and local expertise so that the Mackay region plays an even larger role in Queensland’s evolving energy export mix.”

Coal ships queued up at Hay Point and Dalrymple Bay coal-loading facilities. Picture: Daryl Wright

DBI signed a memorandum of understanding with North Queensland Bulk Ports Corporation, the Brookfield Group and international trading company ITOCHU Corporation for the study.

NQBP CEO Nicolas Fertin, which operates Hay Point Coal Terminal, said the organisation wanted to ensure new trades such as hydrogen could co-exist at NQBP ports alongside existing trades.

“This is part of preparing for the decarbonisation of overseas industries and markets so that our ports can support the potential development of new trades that foster the economic development of our region,” he said.

Transport Minister Mark Bailey said Port of Hay Point was a critical part of connecting regional Queensland to power, food and steel industries in Asia.

“Agreements like this allow us to prepare the port to meet the energy needs of developing industries across the globe,” he said.

Queensland Transport Minister Mark Bailey. Picture: Sarah Marshall

“Renewable hydrogen can be stored and used over time, and, as a future fuel source, is one of the most promising solutions for reducing global emissions, particularly in the transport and heavy industry sectors.”