Mission Zero: Hydrogen to drive green energy future in Gladstone and Mackay regions

From Gladstone to Mackay, hydrogen is shaping up as regional Queensland’s next green revolution.

Plans to build a $1 billion hydrogen-equipment development facility in Gladstone sparked some concern about another boom and bust property market cycle in the region, but a real estate heavyweight says it will likely instead drive continued long term sustainable growth.

Alicia Williams, Real Estate Institute of Queensland Zone Chair for Gladstone, said the recent announcement that Fortescue Metals Group would build the biggest hydrogen electrolyser plant in the world in the port city was positive for the local economy, and she was not expecting a boom or bust cycle.

Ms Williams said Gladstone had learned a lot through the last LNG cycle, and the new hydrogen proponents had completed significant research and due diligence to identify the main concerns of residents and stakeholders which included the impact on the local housing market.

“This was evident given the presentations by each of the proponents at the recent GEA Hydrogen Conference and Forum last week,” she said.

“As an industry, are expecting that the recent news will have a positive impact on the market, with improved confidence from homeowners and investors.

Premier Annastacia Palaszczuk was in Gladstone on Sunday with Fortescue Metals Group CEO Andrew Forrest to announce the $1bn hydrogen development facility - a move said was almost as significant as getting the Olympics.

“This means there will be ongoing jobs, starting with hundreds but thousands into the future,” she said,” she said.

“Hydrogen is about the next green revolution, this is about sending a very clear message...that anything is possible in this state.”

Gladstone Ports Corporation CEO Craig Walker said hydrogen was an exciting opportunity for the region and GPC was readying to position Queensland into the global markets.

Annastacia Palaszczuk Premier, with Dr Andrew Forrest, announcing the biggest hydrogen electrolyser plant to be built in Gladstone - Photo William Debois

Further north, 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.

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.

“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.”

Stage one of the feasibility studies are expected to begin during 2021.

In 2020, Anglo American committed to achieving an ambitious goal of carbon neutrality across operations by 2040, with eight operations worldwide to reach that goal by 2030.

Anglo American is working with ENGIE to develop the world’s first hydrogen-powered mining truck.

The operational performance is expected to match or exceed their diesel equivalents with the added benefits of cleaner air, less noise and lower maintenance costs.

While hydrogen power is applicable across most forms of transport, Anglo believes the heavy commercial freight sector could offer the greatest near term growth opportunity for hydrogen-powered vehicles, given hydrogen’s physical advantages over other technologies. Mine vehicles could also therefore be ideal candidates.

The truck is being piloted at Anglo’s Mogalakwena PGMs mine in South Africa and the company is building a 3.5 MW electrolyser to produce hydrogen on site for use in fuelling the hydrogen powered fuel cell electric haul truck.

It is expected the technology will then roll out around the world in years to come.

Hatch, Anglo American, BHP and Fortescue have established a Green Hydrogen Consortium to look at using green hydrogen to decarbonise their operations globally.

Originally published as Mission Zero: Hydrogen to drive green energy future in Gladstone and Mackay regions