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Landmark green hydrogen hub a step closer for North Queensland

14 Jul, 2023



A significant project development between the Han-Ho (Korea-Australia) H2 consortium partners represents one of the leading export project developments in renewable hydrogen and green ammonia between Queensland and Korea.

The signing of a landmark Heads of Agreement in Korea during the Premier’s investment mission could be one of the first major projects in Queensland to export green ammonia to Korea, establishing a green energy corridor between Australia and Korea.

The consortium consists of Australian-based Ark Energy and its parent company Korea Zinc, as well as Korean conglomerates Hanwha Impact and SK Gas.

The proposed mega-project in North Queensland will produce up to 1.8 million tonnes per annum of green ammonia and will support the development of up to 4.5GW at Ark Energy’s Collinsville Green Energy Hub.

The project’s development during feasibility stage will be supported by the Queensland Government investing $8.5 million for the Abbot Point Activation Initiative under the Queensland and Energy and Jobs Plan hydrogen hubs program.

This investment will rapidly advance the master planning, development and infrastructure arrangements that are needed for Abbot Point to become a hydrogen export super hub including planning for the water and power supplies needed to produce hydrogen at scale in North Queensland.

Abbot Point presents a unique opportunity on government-owned land, with existing deep water, port infrastructure and proximity to one of Australia’s best renewable energy zones making it a prime location for renewable hydrogen and ammonia developments in North Queensland.

Townsville will become a critical minerals and hydrogen manufacturing powerhouse with Korea Zinc’s Sun Metals green industrial precinct and Ark Energy’s SunHQ Hydrogen Hub supporting the expansion of critical minerals supply chains and the domestic hydrogen industry.

Premier Annastacia Palaszczuk said while the state’s traditional trade and investment sectors with Korea remain strong, decarbonisation initiatives are also making progress.

“North Queensland has some of the best solar and wind resources in the world located near Queensland’s largest dam.

“The Collinsville Green Energy Hub provides more good job opportunities in the Bowen Basin as we create more industries in Queensland.

“Our ongoing partnership with the Korea Zinc group will support Townsville to become a world leader in critical minerals and hydrogen manufacturing including through the SunHQ Hydrogen Hub.”

Resources Minister Scott Stewart said the agreement builds on the strong relationship Townsville and the region has with Sun Metals already.

“We have the critical minerals in the ground, the expertise above and the right infrastructure to support the development of both the resources and renewable industries.”

Ark Energy Chief Executive Officer Daniel Kim on behalf of the consortium said: “The collective ambition of the Han-Ho H2 Consortium is to accelerate the energy transition by building new green growth engines for both Australia and Korea.

“We believe North Queensland has the potential to become a world class producer and exporter of green hydrogen.”

Abbot Point is located close to the Isaac and Northern Queensland REZs and within 400 km of the North Queensland Clean Energy Hub REZ. The three REZs have excellent solar and wind capacity potential, to support a large hydrogen scale export industry.

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