The Liberal National Government is supporting a feasibility study looking into the construction and operation of a renewable hydrogen plant near Moura in Central Queensland.
Through the Australian Renewable Energy Agency (ARENA), the Government has committed $1.9 million in funding to Queensland Nitrates Pty Ltd to determine the feasibility of producing renewable hydrogen at a commercial scale.
The proposed project has the capacity to produce 20,000 tonnes per year of ammonia from 3,600 tonnes of renewable hydrogen.
Queensland Nitrates currently uses natural gas to manufacture the ammonia required for their plant. The project will reduce their use of natural gas by around 20 per cent and minimise the dependence on third party suppliers to fill its production gap.
Federal Member for Flynn, Ken O'Dowd welcomed the announcement saying the study is a great opportunity for the local economy.
"If the study leads to a plant being built, it will create hundreds of jobs during construction, and dozens of ongoing local jobs for Moura", Mr O'Dowd said.
"This funding shows the Morrison Government's strong commitment to explore the use of hydrogen in exports, transport, and the gas distribution network, for industrial users and to support electricity systems."
This feasibility study complements other innovative projects being supported by the Australian Government to further progress the commercialisation of renewable hydrogen production for both domestic and international use.
In December 2018, the COAG Energy Council, led by the Australian Government, commissioned officials and the Chief Scientist to develop a comprehensive and ambitious national strategy for the development of an Australian hydrogen industry, to be delivered by the end of 2019.
We believe Australia is well positioned to become a world leader in hydrogen development.
The development of our hydrogen resources will create new Australian jobs and an export industry valued in the billions.
We are taking action to ensure Australia is prepared to grasp those opportunities. Today's announcement builds on the more than $140 million the Government has already invested in hydrogen projects around Australia.
